Personal loan is an unsecured loan not backed by any collateral. You need urgent money, you have a good earning then you can apply for this loan. This type of loan is offered to salaried and self employed individuals who have previous good credit. Plan your holiday, child education, marriage, buy the latest lifestyle gadgets, just relieve from a temporary cash crunch.
The major personal loan providers in the market are Hdfc, Citibank, Standard Chartered, Axis Bank, The public sector banks like Sbi, Bob, Pnb they do not take risk in offering unsecured business, though they offer to those who have government jobs.
It does matter while opting for a personal loan. Most of the banks offer loans to the salaried individuals, while some offers to the self-employed also. During festive time some lenders offer special personal loan packages as the people want more money during the festival time.
You may not be good at any calculation of interest rates and the EMIs which suit your income. Our loan experts guide you best to choose the lenders as we have a great deal with the major loan lenders of the market.
First check the interest rates of each bank and compare the rates. Usually the interest rate varies from 12% to 25%. You must choose the minimum rate. So, take the help of our loan consultants.
There are other charges which added to a loan are processing fee, prepayment penalties, and documentation fee. Check for these charges as all these increase the loan cost.
You must check the monthly equated installment (EMI) that you have to pay to the bank. It is the principal amount and interest rates on the principal equally divided across loan period.
As a loan expert we guide you which loan can suit your financial requirements. We can offer you an alternative option. Take the service of Mantra4money and get the best personal loan deal.
*Wide range of product to choose.
*Doorstep service at your comfort.
*Zero charges – No extra charges, fees or commissions to you.
*Simple procedure, minimal documentation and quick approval.
*Attractive interest rates.
*Expert advice on your needs and suitability.
*Provide transparency and rapid decision making, with no confusion.
*Compare prices and Features of various banks/ insurers.
*Calculate your Emi , Eligibility , Life cover and so on.
*Provide comprehensive choice than any of our competitors.
*Quick and transparent processing.
Every customer’s eligibility is different. Access your eligibility with our simple calculator.
*To qualify for a loan you must be An Indian resident.
* You must be at least 24 years of age at the commencement of the loan.
* The loan must terminate before or at 65 years of age or age of retirement, whichever is earlier.
* You must be salaried , self-employed or professionals with a regular source of income.
Step 1 – Choose the lenders.
Step 2 – Determine your Loan Eligibility .
Step 3 – Get ready all your required documents.
Step 4 - Apply for Loan by filling the application form with all requisite documents.
Step 5 – Verification -The lender will verify the information and documentation provided by you along with checking your credit history. The lender can also ask for additional documents.
Step 6 – After verification and credit check lender calculate your eligibility and get the loan Sanction.
Step 7 – Once loan get sentioned lender issue a loan agreement with all terms and conditions.
Step 8 – Applicant sign the loan agreement and give post-dated cheque or ecs for repayment.
Step 9 –Disbursal of loan.
Is personal loan an unsecured loan?
A personal loan is an unsecured loan not backed by any collateral like property, and other assets. Generally it does not require a guarantor; however it may vary to some banks. Personal loan approval takes less time as it asks minimum documentation. Unlike business loan, the bank never monitors the end use of the fund as the borrower has enough freedom to use the money in his/her personal needs.
Does the bank put any restrictions on using of the funds?
No, the bank never imposes any restrictions. You can use it in any personal needs such in purchasing in any home contents or for any other purposes.
How do I research the rates of the personal loan providers?
You need not visit a bank physically. There are rush in the working hours. Besides, you cannot visit all the banks for your loan requirements. The best way is to do online research visiting the site of a loan marketing company, such as Mantra4money.com. Check the offers of different banks including the interest, EMIs, etc. Also read carefully the criteria for eligibility and the documents you have to submit for loan application.
What is the eligibility criteria defined by the banks?
Each bank has own eligibility criteria for personal loan borrowers, though all ask for some basic factors. They will judge your ability to repay the loan. They will search in which locality you live, how much you earn, etc. Before applying check yourself whether your eligibility would be accepted or not.
Is personal loan a long tenure loan?
It can be called a short tenure loan as most of the banks offer it for short period, like maximum 3 years to 5 years.
How much amount can I take?
Normally the banks offer a personal loan from 25,000 to 15 lakh. It depends on your income and loan repayment eligibility.
What are the repayment options offered by the banks?
You pay through EMI, equated monthly installment or you can give post dated cheque for all the installments. You can also sign an electronic clearing system which allows the loan providers to debit your money monthly from your account.
Is there any hidden charge? What is about the processing fees?
The Banks charge fees at the processing and preclosing time. The fees that are charged at the processing time is called processing which may be 2 or 3% of the loan. The fee charged at the preclosing time is also like 2 to 3%.
Are the interest rates of all banks are same?
No, each bank has their own rates, usually the interest rates of a personal loan is like 14%-26%. It may also depend upon your profile, the amount and tenure of the loan. .
How many days will it take for disbursement of the loan?
After you submit all the required documents and fulfill all the eligibility criteria, the loan is disbursed by the bank. Some bank takes 3 days and some 7 days.
Is joint application accepted?
Yes, you can apply jointly with your spouse or parents. This would be an added advantage to meet your eligibility criteria. If your co-applicant has good income then you can apply for a large amount.
Does the bank offer any relationship discounts?
Yes, if you are an existing customer and you have a good banking history with them you can avail some relationship discount. They offer you discounts in low interest rates, low processing fees.