A Personal Loan is a secured loan given by banks, without asking you its purpose.
Customers in India take personal loan when they need funds for
1. Credit Card Dues
2. Emergencies like Hospital Expenses
3. Marriage Expenses
4. Margin money for the Home
5. Home Renovation
6. Travel Expenditure
273,923 crores worth of Personal Loan Applications received! (last updated on 11 February 2016)
To get your personal loan approved, you need to submit these following documents:
For Self Employed
• 1 photocopy of PAN Card
• 1 photocopy of PAN Card
• Identity Proof
• Balance Sheets
• 3 to 6 months Bank Statements
• Profit & Loss Account
• Residence Proof
• Partnership Deed & other mandatory documents etc.
• Salary Slip
• Guarantors & their same set of documents
What do I Compare in the Personal Loan Quotes of different banks?
It is advisable to compare Loan Quotes based on the following factors: 1. Monthly EMI
Compare the monthly EMIs of different banks for loans the same amount and the same tenure.
2. Processing Fee
This is a one time fee. Check which bank charges the lowest fee. The range is between 1.50% - 2%.
3. Prepayment and Part Payment
It is advisable to close a loan before tenure, by paying off the whole or part loan amount, when your cash situation allows it. It will help you reduce your Interest amount. Check which bank offers you these options at no charge. Click here for Prepayment calculator.
4. Turnaround Time
Different banks have different processing and disbursal time. Check who can give you the loan when you need it the most.
Who can get the lowest rate?
The interest rate at which you can get the loan, is defined by:
1. Quality of Employment:
The company you work at matters. If it is a larger known corporate firm, the rates will be lower. People working with small companies are charged a higher rate. Banks generally refuse loans to people working at partnership firms.
The higher your salary, the lower will be the rates. People with income higher than Rs 75,000 /month get Benchmark Lowest Rates.
3. Credit History:
A good credit history also ensures lower interest rates.
4. Relationship with Bank:
Generally, Banks give special offers (lower rates and processing fees) to customers who have salary accounts with them.
Who is eligible for a Personal Loan?
Loan eligibility is determined by the following factors:
Banks and NBFC lend to those who have an income either from salary or business. Banks prefer salaried customers with an income of more than (Rs.) 20,000/ month. As the income goes up loan amount on offer gets bigger. If eligible, you can get a Personal Loan Amount of between 10 to 18 times your monthly income.
Most Banks give Personal loans to people who have Cibil Score of above 750. Anyone who has credit cards and loans and pay on time, will have a Cibil Score of above 750. So, you can be confident if you are regular with your payments.
If you have no credit cards or loans, your Cibil score is 0, as you are a first time borrower. Don't worry! Just apply with the bank where you have your salary account. They are likely to approve your loan on a 0 Cibil Score.
Disclaimer: Information is sourced from respective Banks websites. We don't provide Loans on our own but ensures your information is sent to bank/agent which you have opted for and we do not charge any fee from our customers. We don't do short term loans. Deal4loans has no sales team on its own and we just help you to compare loans .All loans are on discretion of the associated Banks/Agents. Read More