Personal LOAN

What is Personal Loan ??

Personal Loan is an unsecured loan for personal use which doesn’t require any security or collateral and can be availed for any purpose, be it a wedding expenditure, a holiday or purchasing consumer durables, the personal loan is very handy & caters to all your needs. The amount of loan can be ranged from Rs. 50,000 – Rs. 20 lakh & the tenure for repaying the loan varies from 1 to 5 years.

Benefits of Personal loan


A Loan without security: A Personal Loan is not a secured loan (bank doesn’t ask for any security or collateral) as against a Secured Loan where one is required to pledge a house or other security to acquire a loan.

Simple Documentation: A Personal Loan can be accessed with minimal paperwork or documentation & doesn’t take much time to procure as against a Secured Loan.

No specification about the end use of the loan amount : You are not required to disclose the end use of the money borrowed, Banks are concerned about the fact that whether the borrower is able to pay back the loan with interest before the due date or not and they confirm this by checking the income, employment or business & other factors of the borrower.

Big Loan amount: Personal Loan is a means to fulfill bigger loan requirement, you can take a loan ranging from Rs. 50,000 to Rs. 20 lakh.


VARIOUS TYPES OF PERSONAL LOANS

  • 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 /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 installments paid/Months on books required are 12 months.
WHAT ARE THE ELIGIBILITY CRITERIAS?

Some of the basic requirements are:

SALARIED:


Applicant should be Indian Citizens Working and residing in the city applied.
Minimum age required is 21 years and Maximum 60 years.
Minimum Work Experience-1 year in current company and 3 years overall. Exceptions based on the salary & Co working in also allowed.
Minimum Net Take Home - Rs.15,000/- per month .
Residence-either Owned, rented or company provided.
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.
Mininimum age required is 23/25 years and Maximum 65 years.
Minimum 3 years experience in same business.
Minimum income Rs.2.50 lakh per annum.
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?

Diffferent 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, avg bank balance, track record on existing loans loan, company profile & loan tenure also plays a part in deciding eligibility.
In the case of Self Employee’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 1.25 to 4 times of cash profit generated less existing liabilities or a certain percentage of turnovers less existing liabilities.

What is Loan Tenure ??

Loan Tenure is the period within which the applicant wants to repay the loan .Loans can be repaid from 1 year to 4 years. In exception this can go up to 5 years as well.
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.
Track record 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.



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

 

 


 



OUR CLIENT SAY'S

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