What is a Personal Loan?
Personal Loan is an unsecured loan for salaried and self-employed wherein no security is required against the loan. Unsecured Personal Loan can be taken to finance any short-term requirement like overseas trips, marriage, medical emergencies, etc. The only condition is that the Personal Loan should not be used for speculative purposes.
Personal Loan is a simple and quick process of funding your financial requirement with minimum documentation and a hassle free product in banking to get funds. In India, Banks as well as Non-Banking Financial Corporation (NBFC) finance Personal Loan.
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KEY POINTS TO REMEMBER
Loan Features -
It is essential to check the feature of part payment and the foreclosure charges. Few lenders have both the features in the product. Certain loans such as Home Loan do not attract these charges, but banks do levy them on Personal or Business Loan. Most of the lenders do not allow part payment on Personal Loan.
Make Sure About The Charges And Fees -
Read the documents and get clarity from the lender as to about how much will you be charged and for what purpose. We suggest you please read the section of fees and charges carefully and if u have been told for any other discounts, take a written confirmation on email. Please avoid verbal schemes or deal discount and save your time.
Private Banks Or Public -
Private Banks have huge network of branches and executives who provide round the clock services to your door-step, wherein for Public Banks, due to lack of network, you have to do all the legwork. As far as approval time is concerned, private Banks are faster and competitive in their rates than Public Banks. Private Banks are fully digitized to reach out to maximum people.
Rate of Interest and Loan Amount
The Factor depends on the rate of interest and the eligibility are :- Credit history of the borrower and the Company for which the prospective borrower is working .
We Understand Your Urgency
Personal Loan , the product itself justifies the meaning of it – any of your personal needs which includes – Marriage in The Family , Dream Vacation , Home renovation and much more …..
MARRIAGE IN THE FAMILY
Its all about finding the best bank among all which suits your Needs.
Be clear about your requirements. Be aware about the loan you applying to.
Be compliant to the bank policy to serve you better.
Now no need to sacrify your vacation for money now take personal loan and enjoy your dream vacation.
PURCHASING OF HIGH END LIFESTYLE PRODUCTS
To initiate the personal loan process, the lender will require: Application Form signed by applicant with photograph
- Proof of Identity PAN / Passport / Drivers License / Voter ID card / Aadhaar card, etc.)
- Proof of Address Passport / Aadhaar card / Landline Telephone Bill / Electricity Bill, Ration Card, etc.) if rented Rent agreement along with the owners light bill
- Latest 3 months pay slips
- 2 years form 16 or 2 years job continuity proof
- Statement of bank account for the last six months salary credits.
- If any previous loan, then Loan A/c. Statement for last 1 year with sanction letter.
- Income documents for Self Employed
- IT returns last 2 / 3 years
- Audited Balance Sheet & Profit & loss A/c last 3 years
- Proof of turnover vide latest sales / service tax returns
- Proof of continuity of business (Trade License /Establishment /Sales Tax certificate)
- Office address proof
- Qualification or registration proof required for Self-employed Professionals Some of the renowned and big players in the personal loan segment are HDFC Bank, Citibank, Standard Chartered Bank, ICICI, Kotak Mahindra, Fullerton India, Bajaj Finserv, etc.
Always remember that personal loan should be taken only in case of extreme urgency of funds.
Some of the renowned and big players in the Personal Loan segment are HDFC Bank, Citibank, Standard Chartered Bank, ICICI, Kotak Mahindra, Fullerton India, Bajaj Finserv, etc.Always remember that Personal Loan should be taken only in case of Extreme Urgency of Funds.
Personal Loan Eligibility
Since it is unsecured in nature, lenders have stricter norms regarding eligibility and sanctioning of personal loan. But some of the basic eligibility criteria the applicant must full fill are:
Fees and Charges
As far as processing fee is concerned, it varies from bank to bank, loan amount, or the special schemes operated by respective lending institutions. It will be in the range of 0.25% to 2% + Service tax. However the best part of a Personal Loan is processing fee is not charged up front, it gets deducted from the loan amount. So here we get a good option to compare the loan schemes with various banks and pay the processing fees to the bank we zeroed in.
Foreclosure Charges also vary from lender to lender. In a few institutions, it is NIL after a certain period of time which is known as the Lock-in period or the charges get reduced after 1 year or 2 years.