Personal Loan India » FAQs

FAQs

1. What is a Personal Loan?

A personal loan is also called an All- Purpose Loan as it can be used for a variety of purposes and it is also given in most cases without any security of any kind or any collateral like, home, shares, etc.

2. Where can I get a Personal Loan From?

All banks; nationalized, private, as well as, co-operative banks offer personal loans. There are also various other Finance Companies and Financial Institutions that offer Personal Loans.

3. What are the Eligibility Parameters for a Personal Loan?

Eligibility criteria differs from one lender to another, however, there are a few common elements. If you want to apply for a Personal Loan, then your minimum gross monthly income should be Rs 8,000, also you must be 21 years and above to avail the Personal Loan. Also the maximum age limit for a personal loan is 60 years. Age requirements can vary from one lender to another.

4. Who can get a Personal Loan?

Personal Loans are available to everybody who has a legal source of income, which include Salaried Individuals, Self-Employed Professionals, and Self-Employed Non-Professionals etc. The Loan amount is based on the current earnings of the particular individual who is applying for a loan.

5. What is the minimum loan amount that I as a borrower can get and what is the maximum amount that is offered?

Loans are available that range from Rs 50,000 to Rs 15,00,000 and the specific amount depends on your eligibility and financial capability, which includes two key aspects, which are income and repayment capacity.

6. What is the Re-Payment Tenure Like?

A borrower can repay the loan over various time frames. The time frame is dependant on the loan amount taken. Generally, a period of 1 to 5 years is the regular norm when it comes to loan tenure.

7. What are the Lending Rates for Personal Loans?

The lending rates for personal loans are not common or follow the same pattern. Different financiers have different lending rates and usually the rates range from 12-30 percent.

8. What are they additional charges, if any?

All banks will charge a pre-determined processing fee. This is in case where the whole loan amount if payable upfront. The deduction of this processing fee is done from the personal loan amount that is disbursed to a borrower.

9. How long will I have to wait for my personal loan to be approved?

Once the documentation process has been taken care of, the approval of the loan is done within 3 working days, maximum.

10. Do I require to providing any kind of guarantor, collateral, or security if I want to take a Personal Loan?

No, there is no security, guarantors, or collateral required in the case of Personal Loans. However, this is yet another factor that might differ from one lender to another. Typically, there is no requirement for a guarantor, but there are a few lenders who might demand one.

11. What is the Repayment Process of Personal Loans?

The repayment process of Personal Loans is similar to that of any other kind of loan. You pay the loan in Equated Monthly Installments, in the form of post-dated checks favoring the bank that you have taken the loan from.

12. Is there a Pre-Payment option in place?

Most banks will allow you to prepay the entire outstanding loan. However, there is a time-limit and in most cases you can prepay the loan, 180 days after availing the personal loan. Also, prepayment charges will be levied on the outstanding loan amount. Moreover, lenders do not allow part prepayment of the loan.

13. Do I need an account with the bank, which I am going to take the personal loan from?

It would be advisable to take a Personal Loan from a bank with which you have a well-established banking relationship. However, there is no mandatory requirement for the same.

14. Can the income of my spouse be combined with mine?

Yes, you can club your income with your spouse and this will go a long way in boosting your eligibility for a personal loan.