Personal Loan | Rupaiya Vasool

A Personal Loan is an all purpose loan. It is absolutely hassle free and you can do virtually anything under the sky with the money, as long as you pay off the instalments in time. It is an unsecured loan without guarantors, securities, hypothecation or any mortgages. Your income i.e, salary if salaried and IT Returns if self employed along with other factors such as repayment track record and bank statement amongst others are considered by the banks during loan sanction. Personal loans are available from Rs.50,000/-to Rs.40,00,000/-for a tenure of 1 year to 5 years depending on income and repaying capacity. The rule of thumb being longer the tenure higher the loan amount and lower the EMI per month.Personal loans are available to professionals such as Doctors, Chartered Accountants, Engineers, and Architects etc at special rates being preferred customers. Indicative rate of interest would be:

	Salaried individuals 10.25% to 21% Self Employed Professionals 11% to 18% Self Employed Non Professionals 13% to 21%
	The above rates are purely indicative. The actual rates that you can get from the bank depend on various factors like income, company profile, turnover, repayment history, qualification and negotiating power etc.

	Main Features …Unsecured loan suitable for any purpose Like: Education Marriage Medical purpose Purchase of Property or Assets Repay old loans Investments Holidays Gifts….etc. Hassle free loans – No guarantors or security /collateral required.Loans to salaried & self-employed.Special offers for Professionals like Doctors, chartered accountants, engineers, architects, company secretaries,MBA’s etc. Loans are available from Rs.50,000/- to Rs.40 lakh. Repayment options,from 12 to 60 months in easy EMI’s. Loans available against surrogate income of any auto, personal or home loan track of 12 instalments paid.Minimum documentation, & fast approval. VARIOUS TYPES OF PERSONAL LOANS: Personal loans can be broadly divided into income based and non income based.Income based loans are given on the basis of income per month /year for salaried and self employed respectively.Non income based loans also know as surrogate loans are given based on repayment track records of existing personal loans,car loans,home loans and Credit cards from approved banks.Minimum instalments paid/Months on books required is 12 months.
	Process & Eligibility… WHAT ARE THE ELIGIBILITY CRITERIAS? Some of the basic reqiurements are: SALARIED: Applicant should be Indian Citizens Working and residing in Mumbai. Mininimum age required is 21 years and Maximum 58/60 years. Minimum Work Experience-1 month in current company and 3 years overall. Minimum Net Take Home – Rs.20,000/- per month . Residence-either Owned,rented or company provided. Telephone/mobile mandatory at residence. Currently most of the banks are providing unsecured personal loans only to employees of Private Ltd ,Limited and multinational companies. SELF EMPLOYED: Applicant should be Indian Citizens Working and residing in Mumbai. Minimum age required is 23/25 years and Maximum 65 years. Minimum 3 years experience in same business. Minimum income Rs.2.50 lakh per annum. Residence/Office -either Owned,rented or company provided.Either residence or Office should be self owned. Telephone/mobile mandatory at residence and office. Partnership firms ,Private Ltd.companies and deemed Limited companies are eligible. HOW IS ELIGIBILITY CALCULATED? Diffferent banks have different ways of calculating the eligibility.In the case of Salaried, generally most of the banks would calculate eligibility to be 1/1.5 times of annual income.Factors such as existing loan liabilities ,avg bank balance,track record on existing loans loan, company profile & loan tenure also plays a part in deciding eligibility.In the case of Self Employed’s the eligibility would depend on the turnover, existing track record,net profit, cash credit /overdraft limit enjoyed, line of business,cash flow,bank statement,existing loan liability amongst other things.Generally the loan amount is limited 1.25 to 4 times of cash profit generated less existing liabilities or a certain percentage of turnover less existing liabilities. WHAT IS THE LOAN TENURE? Loan Tenure is the period within which the applicant wants to repay the loan .Loans can be repaid from 1 year to 5 years. The rule of the thumb being longer the tenure higher would be the loan eligibility and vice versa.The age of the applicant along with period of service left also influences the loan tenure. WHAT ARE SERVICE CHARGES? Service charges,loan processing charges ,bank charges are various ways of describing the fees which the bank charges for processing and disbursing loans.It is deducted directly from the loan amount and is generally restricted to 2% to 3 % of the loan amount.IT is a one time fee. WHAT ARE THE DOCUMENTS REQUIRED? SALARIED: Photograph. Pan Card Copy. Current residence Proof. Salary Slips for 3 months. Bank statement for 6 months. Appointment letter and proof of work experience. Sanction letters of existing/Closed loans. SELF EMPLOYED: Photograph. Pan Card Copy. Residence and Office address proof(Either residence or office should be self owned). IT Returns CA certified copies for 2 years complete set. Business Continuity/existence proof 3 years old. Business banking 6 months. All existing loan sanction letters. Qualification proof for professionals. Process One can apply for a personal loan any time in anticipation of a quick,hassle free and unsecured finance for any purpose.The verification process at residence and office is physically done within 2/3 days on submission of all documents required.There is a simultaneous credit check done to find out the credit history of the applicant in the bank applied as also other banks.If all the checks are positive the credit officer normally has either a telephonic or physical discussion with the applicant at his office.Subject to the discussion being positive the applicant has to sign an agreement and also hand over PDC’c(Post Dated Cheques) or authorisation for ECS(Electronic Clearing System).The applicant generally gets either a direct credit in his account or receives a Draft within 2/3 working days after executing the agreement.The entire Process may take 5/7 working days.
	FAQ… Who can apply for a personal loan? Salaried Individuals and Selfemployed individuals,Partnership firms,Pvt Ltd and Deemed Ltd companies can apply. What are the Income Criterias for Salaried? A Salaried Individual need to have Minimum NTH(Net Take Home Salary) Of Rs.20000/- pm. What are the income criterias for selfemployeds? Mininimum Income of Rs.2.5 to Rs.3 lakh per annum is the accepted norm. What is the minimum and maximum loan amount? The minimum loan amount for salaried is Rs.50,000/- and maximum Rs.15 lakhs For Selfemployed the minimum loan is Rs.1 lakh and maximum 20 lakh. What are the age Criterias? For salaried the minimum age is 21 years and maximum 60 years. For Self employed’s the Minimum age required is 25 years and maximum 65 years .Can I apply if there is no income Proof? Yes,salaried individuals and self employed’s can apply on the basis of existing personal loan, auto loan & home loan tracks on which minimum 12 EMI’s have been paid . What is the loan tenure?The minimum loan tenure is 1 year and maximum 5 years. Is securities or guarantors required?No security, hypothecation,guarantors or mortgages is required in a personal Loan. Can a person staying on rent apply?Yes,applicants staying either on owned ,rented or company provided accomodation can apply. Permanent residence address proof may be required in case of rented accomodation. What are the interest charges?Interest charges depends on various factors like the Loan Amount,Company profile, qualification & Income etc.It could vary from 16 % to 26% on a monthly reducing basis. Can I Prepay my loan?Yes,the loan can be prepaid after paying 6 instalments. Do I have to pay pre payment charges?Generally all banks charge 4% to 5% of the principle outstanding as prepayment charges.