There are 3 notable key benefits
One can use the money for any purpose absolutely as per one's wish, no need to prove the end use of the loan.
Fast approval & disbursal of the loan.
No assets are hypothecated.
It is a very simple procedure to avail a Personal Loan,You need to fill up the form with us, we will call you up take the essential details required for the loan like Age, Net salary, Company employed with, Designation, Total experience, current experience, period of stay in the city & the current residence & details of the obligations being serviced. We then revert to you with the quotation of the lenders who would sanction the loan & also suggest the best lender suiting your needs, the final decision for which lender to go with lies with you.
We would then mail you the "List of Documents" needed to apply for the Loan once the said documents are ready we would them have them picked up, the form signed & filled up, then the case would be logged in with the bank.
The bank then scrutinizes the documents & the credit team may call for additional documents if required.
You would receive verification calls from the bank & also physical verification would be done at your residence & place of work.
The credit manger would also call you for "Telephonic Personal Discussion" ask question including the confirmation of the amount & the about the need for the same.
In the mean time the lender would also do a CIBIL check for the credit history & the ratings.
Disbursement
Assuming that all the process has gone fine the loan would then be sanctioned. This would bring us to the disbursement stage where the borrower would need to sign the Loan Agreement with the bank & also deposit security cheques. The usual TAT for loan disbursement after completion of all documents is 48 working hours. The lender would issue a Demand draft or RTGS the loan amount as per their policy. Normally the lender couriers the amortization schedule & loan agreement to your residence in the next 15 days.
MOST IMPORTANT THING to get the Personal Loan fast is to submit all the documents asked for in one go.
Verification is also an important thing, telephonic verification should be answered cordially & physical verification should also be positive; do look into these points carefully.
Banks take various factors in consideration to determine the loan eligibility. Some of the most important factor that determine loan eligibility are
Net Salary
Total work Experience
Experience in the current company
Qualification
Period of stay in the current place & city
CIBIL Score
Bank's internal credit score
Ongoing obligation
Some of the important point to ponder while deciding which lender to go to are
Loan Amount
Rate of Interest
Part-payment possibility & charges
Fore-closer charges
Lock-in period
Tenor
Personal Loan can be availed from Rs. 1,00,000/- to Rs. 15,00,000/-
The rate of interest varies from each lender to lender,
some factors affecting the rate of interest are
Company category where the applicant is employed
The category of the company you work in as determined by the bank.
The lender for the sake of their convenience categories the companies according to their market standings i.e. Turnover, Market capitalization, cash flow, no. of employees, board of directors and many other factors, the categorization of the companies vary from Super A to D, where Super A being a premium company on the top of the chart & D being lower in the order.
If the Loan applicant works in a Super A company better are his chances of availing a higher loan amount on the lower rate of interest & for longer tenor.
Loan Amount
In some banks even if the companies are categorized as Super A & so on the applicable rate of interest would be determined by the net salary earned in the last 3 months. Higher the salary lower the Rate of Interest.
Net Salary
The loans are given for a minimum period of 1 year to a maximum of 5 years.
Fees vary from lender to lender. Generally the fees are in the range of 1% to 2.5% of the loan amount. Banks provide lesser fees to the customers who hold salaried account with them or if their companies or listed in the super A / A category. Fee discounts can be availed applicant working for few listed where the banks are running some special programs.
Service Tax is also charged on the applicable on the processing fee. Current Service Tax is 10.30% of the fee.
After all due diligence & calculation the lender approves the loan. This brings us to the disbursement stage where the borrower would need to sign the Loan Agreement with the bank & also deposit security cheques. The usual TAT for loan disbursement after completion of all documents is 48 working hours. The lender would issue a Demand draft or RTGS the loan amount as per their policy. Normally the lender couriers the amortization schedule & loan agreement to your residence in the next 15 days.
One can repay the loan by regular installments calls EMI [Equated Monthly Installments}
The mode of payment has to be one of the following,
ECS - Electronic Clearing Service
Standing Instructions / Auto Debit
PDC's - Post Dated Cheques
Cash payments are never accepted as regular payments, they are to be made only in case of EMI defaults.
Following Fees & charges are applicable
Processing charges - is applicable at the time of disbursement of the loan, it is deducted from the loan amount.
Late payment Charges - are applicable on defaulted EMI's which are paid 7 days after bouncing the EMI.
Cheque /ECS bounce charges - are banks standard charges which applicable on the bounce of cheque or ECS.
Repayment Track Record charges - are applicable when the customer want to pull out the repayment track record.
Cheque / ECS Swapping - are applicable when one wants to swap the given PDC's or ECS to another account or bank.
Part prepayment charges - these charges are applicable when one wants to pre pay some outstanding amount of the loan. Most of the banks do not allow part pre payment.
Prepayment charges - These charges are applicable when one wants to close the loan before its term. These charges are noted in the agreement signed with the bank during disbursement.
As mentioned earlier one can do full prepayment of the loan amount. Most of the banks charge prepayment penalty. These charges are charged on the outstanding amount. Some banks do not have these charges. The customer needs to verify this at the time of availing the loan.
Part - pre payment - Yes! There are some banks who allow part-prepayment. One needs to do better research on this condition laid down by the bank.
Charges applicable while closing the loan are known as pre-payment charges.
Yes! it is very important to know these charges while comparing the lenders.
Suppose if we are planning to close the loan early or we receive some windfall amount and we wish to close the loan we should then know what would be our exist charges. What charges will the bank lay at that point of time. Mostly the prepayment charges levied are in the range of 4% to 6% of the outstanding loan amount. Some banks allow part payment & have no charges for prepayment of the loan.
Banks want to increase their customer base, they come out with various scheme for the customer benefits.
Most likely one is to get a discount on the processing fee & rate of interest if you have a salary account with the bank you are applying the loan & also the company you are working needs to be listed with the bank.
Yes in some banks you can apply jointly! The joint application will help to increase the loan eligibility or can get the rate of interest down if one of the applicants in employed with a listed company.
This is not necessary. Some time banks do run some schemes to increase their Current Account / Savings Account. They may ask you to open an account with them in return they may provide with some interest rate / processing fee benefit.
EMI is Equated Monthly Installment
The installment paid while servicing the loan is equal for the whole tenure.
The composition of EMI= Principal Amount + Interest.
Personal Loan is a quick Loan given on the basis of salary without any kind of Mortgage / hypothecation. These loans are generally for short period of time. As these are unsecured loans the Rate of Interest are higher than mortgage loans. As Rate of Interest is higher & Tenor is short the EMI's are higher.
