About a Personal Loan & How to Apply?
Do you want to buy the latest model of LCD TV? Do you wish to go for your dream holiday to Europe? There are a lot of immediate monetary requirements which could not be fulfilled due to the unavailability of ready cash. No worries! Personal loans are at your service.
Get Loan without security
You do not have to provide any security, collateral or guarantors for a personal loan. It is purely an unsecured loan given to you only on the basis of your financial health and credibility.
Faster Loan approval
Banking system in India has improved a lot and the monetary needs can be fulfilled within a few days. Now a days banks are providing attractive personal loans.
Loans for upto 20 lakhs
Generally personal loans are available from 50,000 to 20 Lakhs. The amount that can be borrowed is based on your actual financial condition and profile. Some banks even offer more. Any Salaried or Self employed individual is eligible for personal loan. You can choose repayment tenure, from 12 to 60 months. Repayments are done via EMI (equated monthly installments) Reasonable interest rates are one of the attractions.
Personal loan with Insurance
Most of the banks offer personal accident insurance to cover the personal loan.
The most attractive part of a personal loan is “No Questions asked”. In case of personal loan, there are NO questions asked regarding the use of the loan amount. This type of a loan is different from car or housing loan, for which you have to provide necessary documents to prove the usage of money.
There is also the option of balance transfer in personal loan.
Personal loans are available against Life Insurance Policy / Premium receipts.
Now a days its very simple to apply for a personal loan with simple procedure, minimal documentation & fast approval.
How do I know that I am Eligible for Personal loan?
Eligibility is measured on the basis of your income, which is valuated with ITR, salary or form 16. You can expect a personal loan equivalent to EMI one half of monthly income.
How is my monthly income of self employed calculated?
Monthly income for self employed or business man is calculated as follows :
1/12th x (Net Profit + Interest to Partners + Interest to unsecured loans + Depreciation)
How much loan can I get on my Insurance policy?
You can get upto 5 times of your annual premium of any Life Insurance policy. Make sure that you have already paid the last 2 years premium without default. You can get a maximum loan of 2.5 Lakhs. (Each bank has different limits, please contact banks for further details)
How can I payback my loan?
You can pay back the loan in EMI’s (Equated Monthly Installments) using post dated cheques in favor of the Bank.
Is there any Age limit for applying for a personal loan?
Minimum age is 21 years.
Maximum age of an applicant at the time of loan maturity should be 60 years (salaried) and 65 years (self employed).
Is there any additional charges for the loan?
Usually there will be a processing fee of 2% of the loan amount, which is payable upfront. This fees will be already deducted from the loan amount approved to you. Some banks even waive of the processing fee to attract more customers.
I want to prepay my loan, is it possible?
Partial prepayments are not allowed. You have to prepay the entire outstanding loan amount. It can be done any time. There are some charges for prepayment as well.
Any minimum income required to apply for a loan?
It depends on each bank’s policies. But in general the minimum annual income should be Rs. 1 Lakh.
Do I have to open an account with the bank issuing the loan?
It is not necessary to open an account with the bank issuing the loan. But most of the banks will encourage you to open an account to start a banking relationship with you.
How do I apply for a Loan?
Most of the banks have online application, which can be done through internet itself. Even some banks provide the customers with SMS facility, after which a representative will fix an appointment with you to proceed further.
How many days does it take to get the loan approved?
It takes around 4~7 working days.
Recommended Read :
- What is a Personal Loan?
- How to Get Personal Loan?
- Personal Loan for Women Employees
- Personal Loan Eligibility and Benefits
- Facts to Know Before Applying for Personal Loan
- Beware of Personal Loan Frauds
- Gold Loan vs Personal Loan
- Personal Loans Vs Mortgage Loans
- What is Unsecured Personal Loan?
- How to Get Loan Against Insurance?
- How to Get Unsecured Personal Loans?
- Secured Loan vs Unsecured Loan
- Pros and Cons of Financing Business With Personal Loan
- Risks and Benefits of Combining Personal Loans
- Pros and Cons of Prepayment and Part Payment of Personal Loan
- Loan Against Car
- Who are Private Lenders?
- Processing Fee for Loans
The most frequently asked questions about personal loans are well tackled in the article. Personals loans are simply the amount given for personal benefits such as for renovating a house, buying a new cell phone, going on a vacation and so on. You do not have to keep any security in order to get a personal loan. You need not wait any longer to realize your dream. Apply for a personal loan right away!
Iam looking for a personnel loan. now im working in uae, my monthly salary is AED 8000. how ican appy. what is the procedure
Where are you trying to apply for Loan? Is it in UAE or another country?