What is Personal Loan?
A personal loan is a loan taken by an individual to fund any personal expense like, for example, a wedding, to make renovations to the home or even for a vacation. It has higher interest rates than secured loans like a home-equity loan. Hence, Personal loans are backed only by your promise to repay, and hence, for this reason they are also known as “unsecured loans”. This kind of financing usually comes with a fixed interest rate as well as a term ranging from one to five years. There is no collateral to appraise, so getting an underwriting decision as well as receiving your funds can happen very quickly. They are safer than credit cards as well as can improve your credit rating, because credit scoring systems treat installment debt more favorably than revolving debt like credit cards. Finally, personal loans usually come with lower rates than comparable credit cards.
About Bangalore
Bangalore, officially known as Bengaluru, is the capital of Indian state of Karnataka, India. It is sometimes referred to as the “Silicon valley of India” because of its role as the Nation’s leading Information Technology (IT) exporters. The headquarters of some of leading Indian Technological organisations such as ISRO, Infosys, Wipro, HAL are located here.
Documentation For Personal Loan
List Of Documents For Salaried
- Proof of Identity:- Passport or Driving License or Voters ID or PAN Card (any one).
- Proof of Residence:- Leave and License Agreement or Utility Bill (not more than 3 months old) or Passport (any one).
- Latest 3 months Bank Statement (where salary or income is credited).
- Salary slips for last 3 months.
- Two Passport Size photographs.
List Of Documents For Self-Employed
- Proof of Residence:- Leave and License Agreement or Utility Bill (not more than 3 months old) or Passport (any one).
- Income proof (audited financials for the last two years).Latest 6 months Bank statement.
- Office address proof.
- Proof of residence or office ownership.
- Proof of continuity of business.
- KYC Documents : Proof of Identity; Address proof; DOB proof.
Eligibility Criteria For Personal Loan
For Self-Employed Indivisuals
- Criteria : Self-Employed.
- Age : 23 years (self employed individuals) and 25 years (for doctors); Maximum age – 65 years.
- Minimum Turnover : Rs. 40 lakh for non-professionals; Rs. 15 lac for professionals; as per audited financials.
- Minimum Profit After Tax : Rs. 2 lac for Proprietorship Firm/Self employed Individuals and Rs. 1 lac for non-professionals as per audited financials.
- Business Stability : In current business for at least 5 years and minimum 3 years for doctors.
- Existing relationship with the bank : Minimum 1 year liability relationship (current or savings account) or Asset relationship (loan) either live or closed in the last 36 months; repayment track asrequired.
For Salaried Indivisuals
- Criteria : Salaried.
- Age : 22 years to 65 years.
- Total years in job or profession : 2 years.
- Years in current residence : 1 year (One day if in a Super A Company).
- Salaried individuals with minimum monthly income Rs.15,000 (Rs.20,000 for applicants residing in Mumbai & Delhi; Rs.18,000 for applicants residing in Chennai, Hyderabad, Bangalore, Pune & Kolkata; For Others Rs. 15,000).
Know About The Terms And Conditions:
Repayments
- If you keep to the terms of this agreement you’ll make xx monthly payments of £xx (as detailed in your own agreement).
- The first payment is due one month after we send the loan funds to you. Therefore, the day we send the funds may be different to the day the funds arrive in your account.
- The amount you owe will change.
- If you don’t make payments in full and on time, you’ll pay more interest overall.
Overpayments And Repaying Your Loan Early
- You can overpay your loan at any time while this will reduce the outstanding balance so you’ll pay less interest.
- Also, You can ask for a statement showing the effect of any overpayment on the amount you owe while we’ll send you this within seven working days of your request.
- You can also repay the full amount you owe at any time.
Failing To Make Your Repayments On Time
- Not repaying us on time means that you’ll have broken the terms of your agreement, like, you may pay more interest overall or we may report your breach to credit reference agencies or you may find it more difficult to obtain credit in the future.
- We may use the money on any other account you hold with us.
- We may end the agreement and require you to repay the full outstanding balance.
- Legal proceedings may be taken against you which could result in the debt being secured by any property you own.