Salaried

Personal Loan:

Choosing the right personal loan is very important as every personal loan product has its own benefit. Some offer cheaper interest rates, some offer 0 foreclosure or a part payment facility with no extra fees attached to it or some offer cheaper processing fees and shorter lock in periods. Our trained experts help you choose a personal loan according to your need and advice you the right offer which will work to your advantage.

What are Personal Loans ?

Personal loans are any purpose loan  which are given without  any collateral or guarantor. This is a very unique loan product wherein the borrower is at his/her discretion to do whatever they need.   In other words , unlike any other loan product viz a  car loan or a consumer durable loan or a  housing  loan, a personal loan can be used by the borrower   for any of his/ her personal needs. There is no restriction for the usage of such loans though it  should not be used for speculative purposes and investment in tax saving instruments.  The loan can be repaid like all other loans through the equated monthly installment (EMI) process where a fixed amount is paid each month.

Personal Loan Features :

  • They are not secured.
  • They are  any purpose loan .
  • They come at an attractive rate of interest.
  • They are relatively short term loans vis a vis other loans, (i.e  3 to 5 years)

Personal Loan Advantages:

  • First and foremost  advantage of a Personal loan is that it is an any purpose loan.  Be it be holidays, wedding  in family, to pay off your dues in credit cards, sending your child for higher education, buying jewellery, buying a piece of plot which otherwise no banks fund, and to meet any contingencies. You  neednot have to furnish the end use of loan to the bank.
  • The loan doesnot require any security or collateral. It doesnot require a guarantor either.
  • The documentation involved is very minimal.
  • The time taken for processing is minimal.

Personal loan eligibility

  • Salaried Individuals
  • Self Employed Professionals
  • Self Employed Non Professionals ( Business People )
  • One should have completed more than one year of continuous service from the same company
  • For self employed 3 years of continuous business
  • Good Cibil history or no Cibil history.

Documentation :

The documentation for personal loans is one of the simplest. Basic KYC documents and income documents would suffice to get a Pesonal Loan.

The general list for obtaining a Personal Loan are as follows:

1.  Photograph
2.  Identity proof
3.  Address proof
4.  Income proof
5.  Bank Statements
6.  Continuity Proof
7.  Qualification proof( applicable only for Self Employed Professionals)

The detailed documents are as below:

Identity Proof (Any one of the following)

  • Copy of PAN Card
  • Copy of Passport
  • Copy of Driving  Licence
  • Copy of Government ID card
  • Copy of Voter  ID card
  • Copy of Company ID Card ( for select Corporates)

Address Proof (Any one of the following)

  • Copy of Passport (Can also be used as proof of identity)
  • Copy of Telephone Bill  (both landline and post paid mobile connection)
  • Copy of Driving  licence
  • Copy of Voter ID card
  • Copy of Ration card
  • Copy of Electricity bill
  • Copy of bank statement ( computerised statements only)
  • Copy of Life Insurance premium receipt
  • Copy of any title deed( Sale deed/ Index II)
  • Copy of Property tax receipt
  • Copy of Leave & License Agreement
  • Copy of latest credit card statement

Age Proof (Any one of the following)

  • Copy  of PAN card
  • Copy of Passport
  • Copy of Birth Certificate issued by competent authority

Signature Verification Proof( Any of the following)

  • Copy of PAN Card
  • Copy of Passport
  • Copy of Driving License
  • Signature verification from Bank

Income Documents:
For Salaried individuals:

  • Copy of latest  three salary slips
  • Copy of appointment letter or Form No. 16 indicating proof of continuity in employment
  • Bank statements for the last 3 months

For Self-employed Individuals :

  • Copy of last two year IT returns along with computation of income, Balance sheet and Profit & Loss a/c  , audited reports ( in case of audited financials)
  • CA certified financials ( in case of unaudited financials)
  • Bank statements of last six months of the main business banking

1. What is a Personal Loan?

Personal Loans are unsecured loan which does not require any security or collateral .It also does not require any guarantor

2. Who can apply for a Personal Loan?

Any individual who has got a source of income as salary or business income can apply for a personal loan. Please note salaried individuals working in proprietorship business and partnership firm are not eligible to apply for this loan.

3. When can one apply for a personal loan?
You can apply for a personal loan in order to fulfil any of your  personal needs which requires   financial assistance . The loan can be used for  buying a plot, wedding expenses, hospitalization expenses, holiday packages, buying jewellery, higher education  etc.

4. Where can I get a personal loan from?
Personal Loans are offered by nationalized banks, private banks , foreign banks and a few Non Banking Finance Companies.

5. Is there any security or  collateral for a personal loan?
Personal loans doesnot require any  collateral or security. Exceptionally in some cases, a Co-applicant is required if certain norms are not met by the applicant.

6. What is the maximum one can get as  a personal loan?
Personal loans are available in the range of Rs. 50,000 to  Rs.30 lacs  depending on the income eligibility of an applicant. However banks  also have specially designed products to offer  higher loans.

7. What is the maximum tenor  for a  personal loan?
The  tenor of personal loan ranges from  12 months to 60 months. However it should be noted that tenor is the discretion of the bank and also in most of the case, the tenor is restricted to 36 months.

8. Is there any fee for availing a personal loan?
Yes, you have to pay processing charges as decided by the bank from time to time. Generally it varies from 2% to 2.5% .

9. How do  I repay a personal loan?
Personal loans are generally repaid by way of  equated monthly instalments( EMI)

10. Is there any moratorium period for repaying personal loan?
No, moratorium is not applicable for personal loans. Generally first EMI starts within 45 days of the disbursement of loan.

11. What is the rate of interest that will be charged on my personal loan? 

Rate of interest is a factor of prime lending rate (PLR) as announced by respective banks from time to time which varies with market  conditions. Generally the rate varies from 13.5% to 22% depending on the  loan amount and  profile of applicant.

12. How much time does it take to get a personal loan ?
Generally it takes 3 to 7 working days to sanction a personal loan after completion of all formalities in terms of compliance in documentation.

13. Can I get a rebate on the interest rate &  processing fee?
Yes, a few banks offer special rates for those who have a relationship with their bank. The relation ship could be a bank account, exisiting loan, a credit card etc.

14. What if I want to prepay my personal loan?
Most banks allow its customers to prepay personal loans  after 6 months of disbursement. Generally banks charge a penalty of upto 5% as prepayment charges on the principal outstanding.

15. What if  a few EMIs are not paid in time?

It is in the interest of the borrower to repay all the EMIs as per schedule. Delay in payment of EMIs or default would badly affect the credibility of the borrower. Moreover getting a loan at a later stage would be difficult. Generally banks share the credit history of a borrower with credit bureau and in turn they share data of credit history of a borrower with other banks.

The following is the grid which includes all major banks and non banking financial institutions.

Rate of Interest

14% – 32% reducing

Processing fees

1% – 3%

Pre Closure charges

0% – 5%

Tenure

1 year – 5 years

Part payments Option:

Some banks have this facility while most of them don’t have it.

Special Offers:

We have a list of companies where some banks are giving discounted offers compared to the rates mentioned above.

To know more about your offer and rates please call us or to receive a call back please submit the quick inquiry form.