Personal Loan

Personal loans are any purpose loans 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 a car 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 instalment -EMI (Use EMI Calculator) process where a fixed amount is paid each month.

Personal Loans has the following features:

• They are provided without any specific purpose.
• They are given without a collateral or guarantor.
• 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 can get disbursed as fast as 24 hrs if the documents are in order.
• 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 loans are currently offered from Rs 50,000 to Rs 50 Lakhs and are typically repaid in tenures ranging from 1 to 5 years.
• Higher Loan Amount + Least Loan Tenure = Low Interest Amount
  
Documents FAQ's Banks

THE GENERAL LIST FOR OBTAINING A PERSONAL LOAN ARE AS FOLLOWS:

Photograph

Identity proof

Address proof

Income proof

Bank Statements

Continuity Proof

Qualification proof( applicable only for Self Employed Professionals)

FAQ's

WHERE CAN I GET A PERSONAL LOAN FROM?
Personal Loans are offered by nationalized banks, private banks and a few Non Banking Finance Companies.


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.

HOW MUCH TIME DOES IT TAKE TO GET A PERSONAL LOAN?
Generally it takes 1 to 3 working days to sanction a personal loan after completion of all formalities in terms of compliance in documentation.

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.

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.

HOW DO I REPAY A PERSONAL LOAN?
Personal loans are generally repaid by way of equated monthly instalments( EMI)

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.

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.

WHAT IS THE MAXIMUM ONE CAN GET AS A PERSONAL LOAN?
Personal loans are available in the range of Rs. 50,000 to Rs. 50 lacs depending on the income eligibility of an applicant. However banks also have specially designed products to offer higher loans.

IS THERE ANY SECURITY OR COLLATERAL FOR A PERSONAL LOAN?
Personal loans does not require any collateral or security. Exceptionally in some cases, a Co-applicant is required if certain norms are not met by the applicant.



BANKS PROVIDING PERSONAL LOAN

HDFC, ICICI, SBI, BOB< IOB etc