Personal Loan is an unsecured loan which means loans provided without any security and can be taken for any purpose like : purchasing consumer durables, paying credit card bills, or a wedding expenses.The amount of loan which most banks and NBFC’s offer upto 30 lakhs and the tenure for repayment varies from 1 to 5 years.
Various Factors Which affects Personal Loan Eligibility:
1. Income : This means if a person taking Personal Loan, it will help the bank to understand how a person can repay the loan.Every bank have minimum level of income for calculating eligibility for personal loan.
2. CIBIL : Credit history of a person which can be checked by Credit Information Bureau of India on the basis of all loan/credit card borrowers in the country.
3. Company : In which a person is employed. Every bank categorize all the company in various category as Cat-A, Cat-B, Cat-C, Cat-D and others.The loan amount and interest rate depends upon the company category. Eg. Cat-A company has more loan amount with lesser R O I as compared to Cat-B,C and D.
How Much time take for a Personal Loan It is the most important factor while applying for a personal loan and different banks take time according to their TAT and normally it is 7 days after submitting all the supporting documents.
Various Factors Which affects Personal Loan Eligibility: Apart from the rate of interest, there are also other charges levied by the banks as
A) Processing fee, generally between 1-2 percent of the loan amount . B) Prepayment on late penalty- The bank charges prepayment from borrowers for early payment of a loan which normally 2-4 percent of the outstanding loan amount. Similarly bank charges late penalty for not paying EMI on time and the charges are between Rs250 to Rs 500.for every bounced EMI.
Documents: The Various documents required for a personal loan are Salary Slip, 3-6 Months bank statement, ID proof,residence proof and other supporting documents. For