What is a personal loan?
A personal loan is a type of loan which can be used for your personal use like for a holiday, wedding, etc. Personal loan is comparatively easy to obtain when you are in urgent need. An important point to note is that personal loan comes at a higher interest rate as compared to other loans. Thus, you should only go for this, if you can repay it. You can take a personal loan for up to five years. As compared to other loans, the personal loan requires lesser paperwork. The amount of personal loan depends on the income of the person.
Am I eligible for a personal loan?
Any individual who has a regular source of income can take a personal loan; you can be a working professional, salaried person or a business owner.
What is the minimum amount of personal loan that I can take?
Yes, there is a minimum amount. Although, the loan amount is different for different financial institutions. Most of the money lenders have set the minimum loan amount to be 30,000.
What is the tenure of a personal loan?
The tenure for loan year ranges from 1 – 5 years. Few financial institutions also offer seven years loan tenure.
Can I have a co-applicnat for personal loan ?
It’s true that you can apply along with your spouse. Having a co-applicant increases your income bracket, thus making you eligible for a higher loan amount. But, at the same time, you should remember that a poor credit history of the co-applicant might adversely affect your loan application.
What is the basis for calculation of maximum loan amount?
In case of salaried people, the banks or the financial institution, from where the person is taking the loan, makes sure that the EMI of the loan should be 30% -40% of the total take home salary. If the borrower is already availing some other loan like home loan, car loan, etc. then, these factors are also taken into consideration while calculating the personal loan amount. In case of self-employed people, the profit earned in the most recent P/L Statement is considered. Banks also considers other liabilities of the applicant before calculating the EMI and loan amount.
What are the documents required for personal loan application?
Although, the documentation process is different for different financial institutions. But, there are a few documents which are commonly required by almost every financial institution and banks.
Here is the list of documents for personal loan that you must have while applying :
- Income proof like salary slip for working professionals, ITR is required in case of self-employed individuals. Banks may ask for the most recent Profit and Loss Statement as well for business owners and self-employed individuals.
- Address Proof
- Identity Proof like Adhaar card, Pan card, passport, etc.
Is there any pre-payment charges in case the person wants to pre-pay the personal loan?
There are times when a person might want to pay off the loan before the loan tenure period, in that case, the banks or the financial institutions charge additional ad fees which are known as pre-payment or foreclosure. This amount usually ranges between 1%-2% of the principal outstanding amount. Again, some for some banks the foreclosure amount might be higher.
For any help regarding personal loan, Loanyantra is completely on your support. Get proper guidance and faster disbursal at a lower interest rate and also get cash back offers. All you need to do is just give a missed call to 040-71011991. Get a call back from a dedicated relationship manager.