How do I take a personal loan?
Personal loan is an all-purpose loan, which is given in most cases without any kind of security like a car, home, shares etc.Check out with different banks who are offering you the loan. Find out the eligibility criteria and the documents required to submit before you apply.
 

Which bank gives personal loan?
Most nationalized, Private Banks, Foreign, and co-operative banks offer personal loans Some other financial companies and financial institutions also offer personal loans. For more information you could call are personal loan advisor to visit your place at your convenient time by feeling the form of interest for personal loan.

What is an eligible criterion for a personal loan?
Personal loan eligibility depends on the following factors...
a. Salaried individuals
b. Self-employed professionals
c. Self-employed non professionals
d. Any salaried individual /self-employed professional is eligible for a loan and the amount of loan eligibility will differ, based on the person's current earnings.
 

How long does it take to get personal loan money ?
Usually banks take 7 to 10 days to disburse your loan. However to avoid further delay, it is recommended to keep all your documents ready, especially the post dated cheques (PDC).
Banks from where you provide your PDCs require at least a day or two's notice to give you the cheques. The loan is disbursed only after the completion of all required documents are submitted.
 

Is collateral security essential for personl loan?
Personal loans are especially designed for people who don't want to go through the hassles of providing security or hypothecation. This is a total unsecured loan where no form of collateral or guarantee is taken. However in case of software professionals, some bank do ask for a guarantor or a co-applicant.
 

How much personal loan can I get from the bank?
The maximum amount of loan depends upon your net salary take home. Usually the banks provide you 11 times your net salary, which is calculated after deducting your other constant outflows. Generally personal loans are available in the range of Rs. 15000 to Rs. 10 lakhs.
What is the maximum tenure of a personal loan?
Personal loan is a short tenure loan. Most of the banks provide you loan for maximum 3 years (36 months). However there are options of 5 years (60 months) also.
 

What is the process of repayment of loan?
At the time of applying for the loan, banks ask you to submit all the post dated cheques (PDC). The numbers of cheques leaves depend upon the tenure you opt. There is an option of prepayment after completing the lock-in-period of 6 months where you only have to pay the outstanding principal. However the option of part payment is not available.
 

What criteria is used to determined my loan eligibility ?
Loan eligibility depends upon various factors. The main factor is your ability to repay. The bank would like that the installment you pay should not exceed more than 30 to 40% of your net salary. Apart from that your profile in terms of residence and the place of your work also matter. You should be in the managerial cadre and residing in a location approved by the bank.
 

What are the fees and charges payable and when are they payable?
Usually two types of charges are levied. Once when you are applying for the loan and once when you are preclosing the loan.
The fees when charged at the time of processing called as Processing Fees vary from 2-3% of the loan amount. This could be reduced if you have the ability of bargaining. The second charge is the prepayment penalty paid at the time of preclosure. This too varies from 2 -3 %. Similar to processing charges, you can also try to get this fees reduced.
What is the rate of interest that will be charged on my loan?
The interest rate varies from bank to bank. It usually varies from 17 to 26% depending upon the policies and the scheme you opt.