What is personal loan ?

Personal loans are smaller loans that individuals can avail from banks and NBFCs for sundry purposes. Unlike other forms of loans (e.g. home loans and car loans), personal loans are directly credited to your account and you are free to use the funds as per your convenience..

Why do people take personal loans ?

A personal loan can be used for various purposes: • Education • Home Repair • Shopping • Buying a Car/Bike • Festivals and Celebrations • Medical Emergencies • Business Expense • Other personal emergencies .

Benefits of Personal Loan

• Get loan amount of up to Rs. 30,00,000 to address immediate needs • Funds get credited to your bank account within 48-72 hours • Fixed interest rate for predictable monthly payments • Easy documentation and hassle free processing • Flexible tenure of up to 60 months • No security or collateral required .

Secured or Unsecured Loan

A personal loan can be secured or unsecured. In general, if the loan amount is less than a certain threshold, no collateral or security is required for personal loans. However, if the loan amount is large, then the financial institution may require some kind of security against the loan. Personal loan amounts are usually small and most of the financial intuitions don’t require you to pledge your assets for the same. If you default on an unsecured personal loan, banks/NBFCs are not allowed to take away any of your assets. This is one of the main reasons that getting an unsecured personal loan is difficult..

Loan Amount and Interest Rates

The loan amount & interest rates that an individual is eligible for depends on the profile of the applicant. Since most of these loan are unsecured loans, banks look at the credit worthiness of the applicant to determine the amount that can be provided and the interest rate to be charged. Factors that have an effect on loan amount and interest rate include current credit rating, age, current salary, company of employment, assets of the individual, relationship with the bank etc. In general, the loan amount can vary from Rs. 50,000 to Rs. 10,000,000 and the interest rate can be anywhere between 11% and 30%. .

Loan Repayment Period

At the time of disbursing the loan, the lender and the customer mutually decide on the tenure of the loan. Generally the tenure of the loan is in months – 12, 24, 36, 60 etc. The longer the period of repayment, lower the monthly EMI. However, longer repayment period also means that the applicant will be paying more in interest..

Application Process

Now You Apply on WWW.MAKE4LOAN.COM. The application process for disbursing personal loans depends on the policies of the banks. However, largely the initial due diligence step conducted by different banks remains the same. You need to apply for a personal loan by submitting an application to the bank. The application can be submitted by either filling in a form online or by visiting the bank branch. At the time of application, banks ask for standard documents such as proof of identity, proof of residence, proof of age, current employment details, and proof of income such as form 16/salary slip/bank statement etc. Once the application is submitted along with the verified documents, the bank would process the same and confirm if you are eligible for the loan along with other terms and conditions. If you agree to the terms, you will be required to sign an agreement with the bank. Post signing the agreement, bank disburses the requested loan amount within 48-72 hours of confirmation. .

Eligibility Criteria

All banks have their own eligibility criteria. However, there are some common factors that affect the eligibility of the loan. These factors are: • Age should be between 21 & 60 years • Individuals should have been employed for 2 years • Individuals should have been with the current employer for at least 1 year • Minimum earnings should be of Rs. 15,000 per month .

Documents required for personal loan:

* Identity proof (copy of passport/voter ID card/driving license/Aadhaar) * Address proof (copy of passport/voter ID card/driving license/Aadhaar) * Bank statement of previous 3 months (Passbook of previous 6 months) * Latest salary slip/current dated salary certificate with the latest Form 16.