What is a Personal Loan & How to Apply for it ?

Get Loan without security

You do not have to provide any security. It is purely a unsecured loan given to you only on the basis of your financials.

Faster Loan approval

Banking system in India has improved a lot and the money in need can be availed within few days. Now a days banks are providing attractive personal loans.

Loans upto 20 lakhs

Generally personal loans are available from 50,000 to 20 lakhs. The amount eligible is based on your actual financials and profile. Some banks even offer more. Any Salaried or Self employed individual are eligible for personal loan. The repayment can be chosen from 12 to 60 months tenure. Repayments are done via EMI (equated monthly installments) Resonable interest rates are one of the attraction.

How do I know that I am Eligible for Personal loan?

Eligibility is measured based on your income, which is valuated with ITR(incom taxreturns) , 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 can I payback my loan? You can pay back the loan in EMI’s (equated monthly installments) using post dated cheques favouring the Bank. Is there any Age limit for applying for a personal loan? Minimum age is 21 years. Maximum age is 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. Any minimum income required to apply for a loan? It varies 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 loan? It is not necessary to open an account with the bank issuing 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 thru internet itself. Even some banks provide 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.