Personal Loans - All You Wanted to Know

The main features are:

It is a unsecured  loan  suitable for any purpose Like:

– Education

– Marriage

– Medical purpose

– Purchase of Property or Assets

– Repay old  loans 

– Investments

– Holidays

– Gifts…etc.

It is hassle free. No guarantors or security /collateral required.  Loans  to salaried & self-employed. Special offers for Professionals like Doctors, Chartered accountants, Engineers, Architects, Company secretaries, MBA’s etc.  Loans  are available from Rs. 50, 000/- to Rs. 20 lakh. Repayment options from 12 to 60 months in easy EMI’s.  Loans  available against surrogate income of any auto, personal or home  loan .

Minimum documentation & fast approval. What are the Various types of personal  loans  available? Personal  loans  can be broadly divided into income based and non income based. Income based  loans  are given on the basis of income per month/per year for salaried and self employed respectively. Non income based  loans  also know as surrogate  loans  are given based on repayment track records of existing personal  loans , car  loans , home  loans  and Credit cards from approved banks. Minimum instalments paid/Months on books required is 9-12 months.

WHAT ARE THE ELIGIBILITY CRITERIAS?

The eligibility criteria for salaried and self employed are:

SALARIED:

Applicant should be Indian citizens working and residing in Mumbai.

Minimum age required is 21 years and Maximum 58/60 years.

Minimum Work Experience-1 month in current company and 3 years overall.

Minimum Net Take Home – Rs. 20, 000/- per month.

Residence-either Owned, rented or company provided.

Telephone/mobile mandatory at residence.

Currently most of the banks are providing unsecured personal  loans  only to employees of Private Ltd , Limited and multinational companies.

SELF EMPLOYED:

Applicant should be Indian Citizens Working and residing in Mumbai.

Minimum age required is 23/25 years and Maximum 65 years.

Minimum 3 years experience in same business.

Minimum income Rs. 2. 50 lakh per anum.

Residence/Office -either Owned, rented or company provided. Either residence or office should be self owned.

Telephone/mobile mandatory at residence and office.

Partnership firms , Private Ltd. companies and deemed Limited companies are eligible.

HOW IS ELIGIBILITY CALCULATED?

Different banks have different ways of calculating the eligibility. In the case of Salaried generally most of the banks would calculate eligibility to be 1/1. 5 times of annual income. Factors such as existing  loan  liabilities , average bank balance, track record on existing  loans  , company profile &  loan  tenure also plays a part in deciding eligibility.

In the case of Self Employed’s the eligibility would depend on the turnover, existing track record, net profit, cash credit /overdraft limit enjoyed, line of business, cash flow, bank statement, existing  loan  liability amongst other things. Generally the  loan  amount is limited at 1. 25 to 4 times of cash profit generated less existing liabilities or a certain percentage of turnover less existing liabilities.

WHAT IS THE  LOAN  TENURE?

 Loan  tenure is the period within which the applicant wants to repay the  loan .  Loans  can be repaid from 1 year to 5 years. The rule of the thumb being longer the tenure higher would be the  loan  eligibility and vice versa. The age of the applicant along with period of service left also influences the  loan  tenure.

WHAT ARE SERVICE CHARGES?

Service charges,  loan  processing charges , bank charges are various ways of describing the fees which the bank charges for processing and disbursing  loans . It is deducted directly from the  loan  amount and is generally restricted to 2% to 3 % of the  loan  amount. It is a one time fee.

WHAT ARE THE DOCUMENTS REQUIRED?

SALARIED:

– Photograph.

– Pan card copy.

– Current residence proof.

– Salary slips for 3 months.

– Bank statement for 6 months.

– Appointment letter and proof of work experience.

– Sanction letters of existing/closed  loans .

SELF EMPLOYED:

– Photograph.

– Pan card copy.

– Residence and office address proof(Either residence or

– Office should be self owned).

– IT Returns – CA certified copies for 2 years complete set.

– Business continuity/existence proof 3 years old.

– Business banking 6 months.

– All existing  loan  sanction letters.

– Qualification proof for professionals.

WHAT IS THE  LOAN  PROCESS?

One can apply for a personal  loan  any time in anticipation of a quick, hassle free and unsecured finance for any purpose. The verification process at residence and office is physically done within 2/3 days on submission of all documents required. There is a simultaneous credit check done to find out the credit history of the applicant in the bank applied as also other banks. If all the checks are positive the credit officer normally has either a telephonic or physical discussion with the applicant at his office/place of work.

Subject to the discussion being positive the applicant has to sign an agreement and also hand over PDC’c(Post Dated Checks) or authorization for ECS(Electronic Clearing System). The applicant generally gets either a direct credit in his/her account or receives a Draft within 2/3 working days after executing the agreement. The entire Process may take 5/7 working days.

WHO CAN APPLY?

Salaried individuals and Self employed individuals, Partnership firms, Pvt. Ltd. and Deemed Ltd. companies can apply.

What are the Income Criterias for Salaried?

A Salaried Individual needs to have Minimum NTH(Net Take Home Salary) Of Rs. 20000/- pm.

What are the income criteria for self employed?

Minimum Income of Rs. 2. 5 to Rs. 3 lakh per annum is the accepted norm.

What is the minimum and maximum  loan  amount?

The minimum  loan  amount for salaried is Rs. 50, 000/- and maximum Rs. 15 lakhs. For Self employed the minimum  loan  is Rs. 1 lakh and maximum 20 lakh.

WHAT ARE THE AGE CRITERIAS?

For salaried the minimum age is 21 years and maximum 60 years.

For Self employed’s the Minimum age required is 25 years and maximum 65 years.

Is a no income Proof  loan  available?

Yes, salaried individuals and self employed’s can apply on the basis of existing personal  loan , auto  loan  & home  loan  tracks on which minimum 9/12 EMI’s have been paid.

WHAT IS THE  LOAN  TENURE?

The minimum  loan  tenure is 1 year and maximum 5 years.

Is securities or guarantors required for a personal  loan ?

No security, hypothecation, guarantors or mortgages is required in a personal  Loan .

Can a person staying on rent apply?

Yes, applicants staying either on owned, rented or company provided accommodation can apply. Permanent residence address proof may be required in case of rented/leased, company provided accommodation.

WHAT ARE THE INTEREST CHARGES?

Interest charges depends on various factors like the  Loan  Amount, Company profile, qualification & Income etc. It could vary from 16 % to 26% on a monthly reducing basis.

CAN THE  LOAN  BE PREPAID?

Yes, the  loan  can be prepaid after paying 6 installment.

ARE THERE PREPAYMENT CHARGES?

Generally all banks charge 4% to 5% of the principle outstanding as prepayment charges.

Source by Subhrajeet Talukdar

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Personal Loans - All You Wanted to Know