Personal Loans

Require money to meet your requirement for marriage, medical emergency, shortfall in home loan down payment, electronic gadget, vacation or any other reason, personal loan is the answer.

What makes personal loan so much attractive?
  • No security/collateral is required.

 

  • Simple documentation.

 

  • Processing time 3 days to 1 week on submission of concerned documents.

 

  • Money can be used for any personal reason.

 

  • Cheaper as compared to costly credit card loans.

 

  • Direct credit to bank account by fund transfer.

 

  • Tenure available 12 months to 60 months.

Maximum loan amount in personal loans
  • You can get 10,000 /- to 40 lac rupees in loan amount  .Max amount and minimum amount varies from lender to lender.

 

  • Loan amount will also depend on your annual income and profession.

 

  • Lender will not allow EMI to exceed 50% of your annual income.

 

  • Existing EMI and loans will also be considered while approving loan amount.

 

  • Many banks have preapproved personal loans for existing customer.

 

  • You can apply for joint loan with your spouse or parents to improve eligibility.

Factors which influence personal loan interest rate

Interest rates vary from 13-20% and depends on

  • Loan amount applied for.

 

  • Surplus income available to pay EMI.

 

  • Tenure selected for loan.

 

  • Your Credit score.

 

  • Company you work in is a MNC,large corporate or small company.

 

  • Self-employed may be charged higher rate.

Eligibility criteria for personal loan
  • 21-60 years of age. For salaried 65 years is maximum age.

 

  • Completed 2 years in current profession and 1 year in current job for salaried individuals. Self-employed require to be in business for at least for last 5 years and for doctors it may be reduced to 3 years.

 

  • Living in current residence past 1 year.

 

  • Monthly salary Rs 15000 to 25000 depending on the tier of the city in which you live. For salaried individuals annual profit after tax minimum Rs 2 Lacs.

Documents required for personal loan

For salaried

  • Proof of Identity:- Passport / Driving License / Voters ID / PAN Card (any one)

  • Proof of Residence:- Leave and License Agreement / Utility Bill (not more than 3 months old) / Passport (any one).

  • Latest 3 months Bank Statement (where salary/income is credited).

  • Salary slips for last 3 months.

 

For self employed

  • Proof of Identity:- Passport / Driving License / Voters ID / PAN Card (any one)

  • Proof of Residence:- Leave and License Agreement / Utility Bill (not more than 3 months old) / Passport (any one).

  • Income proof (audited financials for the last two years).

  • Latest 6 months Bank statement.

  • Office address proof.

  • Proof of office ownership.

  • Proof of business existence.

Our Opinion

You can make use of personal loans to settle costlier credit card loans. Ideally you should go in for personal loans in real financial emergencies. You can look towards other sources like taking top up on existing home loan, gold loan, loan from workplace or family and friends etc.

 

You should start saving for future expenses by opening a recurring deposit or SIP in mutual fund.