Finwizz

PERSONAL

LOAN

A dream can be in many forms – be it in the shape of a newly renovated home, an essential appliance, an extravagant wedding ceremony or a well-deserved long holiday abroad.

A dream is envisioned and conceived in many forms – it may be in the shape of a newly renovated home, an essential appliance, an extravagant wedding ceremony, or even a well-deserved long holiday abroad. A Personal Loan is an aid to make those dreams come true. However, it is not limited to dreams, it covers other essential and emergency expenses as well as helps to keep our lives on track. By definition, Personal Loan is any purpose loan which is 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 want to with the money received, without limiting it to one specific reason. However, it should not be used for speculative purposes and investment in tax-saving instruments. The loan can be repaid like other kinds of loans through the Equated Monthly Instalment – EMI (Use EMI Calculator) process where a fixed amount is paid each month.

Features of Personal Loan:

Provided without any specific purpose.
No collateral or guarantor required.
Attractive Rate Of Interest.
Shorter term loans compared to other loans (i.e 3 to 5 years)
TAT for Personal Loan is 48 hours
Personal loan ranges from Rs.50,000 to Rs.50 Lakhs approximately and are typically repaid in tenures ranging from 1 to 5 years.
Higher Loan Amount + Least Loan Tenure = Low Interest Amount.

Documents required:

KYC- PAN Card and Aadhar Card
Company’s ID Proof
Residence Electricity Bill
3 Month's Salary Slip
Bank Statement of last 6 months
2 Years Form 16

FAQS ON PERSONAL LOAN

FROM WHERE CAN I GET A PERSONAL LOAN?

Personal Loans are offered by nationalized banks, private banks and a few Non Banking Finance Companies.

WHAT IS A PERSONAL LOAN?

An individual who has a source of income as salary or business income can apply for a personal loan.

WHO CAN APPLY FOR A PERSONAL LOAN?

An individual who has a source of income as salary or business income can apply for a personal loan.

WHAT IF A FEW EMI ARE NOT PAID IN TIME?

It is in the interest of the borrower to repay all the EMI as per schedule. Delay in payment of EMI 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.

WHAT IF I WANT TO PREPAY MY PERSONAL LOAN?

Most banks allow their customers to prepay personal loans after 6 months of disbursement . Generally, banks charge a penalty as prepayment charges on the principal outstanding.

CAN I GET A REBATE ON THE INTEREST RATE & PROCESSING FEE?

Yes, a few banks offer special rates to those who have a good reputative relationship with their bank. The relationship could be a bank account, existing loan, a credit card etc.

HOW MUCH TIME DOES IT TAKE TO GET A PERSONAL LOAN?

Generally it takes 1 to 3 working days to get a personal loan sanctioned 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, processing fee is applicable only one time, at the time of loan disbursement.

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 AMOUNT 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.

WHEN CAN ONE APPLY FOR A PERSONAL LOAN?

You can apply for a personal loan in order to fulfill any of your personal needs which requires financial assistance such as buying a plot, wedding expenses, hospitalization expenses, holiday packages, buying jewellery, higher education, etc.

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.