- It takes only 3-4 working days to get the Personal Loan sanctioned and disbursal from Banks after submission of requisite documents and papers.
PERSONAL LOAN
Personal Loan is a collateral free loan based on income documents of individuals. Since this is an unsecured loan thus the borrowers past track records of loans, income & credit score has to be good.
Personal loan processing is very easy as it required less documents as compare to any secured loan but it always attracts high rate of interest & shorter repayment period.
Any financial institutional look for credit score & income, therefore your good income documents & credit score will help lender to lend the money fast.
Personal Loan can only be availed for any valid purpose, be it a wedding expenditure, a holiday or purchasing consumer durables, the personal loan is very handy & caters to all your needs. The amount of loan can be ranged from Rs. 50,000 – Rs. 30 Lac & the tenure for repaying the loan varies from 1 to 7 years.
F.A.Q
What is the Normal time required for disbursement of Personal Loan ?
How will Bank decide the loan amount I am eligible for ?
- We will determine Personal Loan Eligibility largely by your income and repayment capacity. Other important factors include your age, continuity of occupation and Credit Information Bureau score (CIBIL).
Can I get instant digital approval ?
- Instant In-principal approval can be obtained. Please contact FinanceBay loan advisor .
Is it mandatory to buy insurances policy with Personal Loan?
- This is optional and purely at the discretion of the Borrower. However it is always advisable to get a liability/life insurance cover so that family members don’t suffer in case of any unfortunate event. For the benefit of the borrowers, one time Liability Insurance premium can be added in the loan amount so that the burden can be reduced. Further, Bank also has tied-up with various Insurance Providers so that suitable products can be available to its customers with reasonable premium.
What is the maximum sum of money that I can borrow from a bank?
- The maximum sum of money that you will be able to borrow from a bank will vary based on a number of factors. If you are a salaried employee, your monthly EMI should ideally not exceed 30% of your monthly pay. Also, the bank/NBFC will take into account if you have any existing loans for which you pay EMIs. Individuals who are self-employed will be offered a loan amount as per the profits that are earned through their business. The concerned individual's other financial liabilities will also be taken into account. The maximum loan amount offered will also depend on the lender's own terms and conditions and personal discussion if the amount is high.
What is the repayment tenure for personal loans?
- Most banks/financial institutions allow borrowers to choose a loan tenure between 1 year and 7 years, based on their convenience.
What are the things that I should look for before applying for a personal loan?
- A few things that you should consider when applying for a personal loan are as follows:
- Interest Rates: The interest rate charged for a personal loan can go from as low as 10% p.a. to as high as 24% p.a., based on the lender's terms and conditions and your credit score. The interest rate makes a substantial difference to the cumulative cost of the loan.
- Repayment Flexibility: Make sure to check if the lender allows part-payments or pre-payments and if there is any penalty levied for making the payment.
- Processing Fee: Even if you are offered a low interest rate, a high processing fee could bump up the cost of your loan.
- Customer Service: Ensure that the lender has sufficient customer care channels for you to reach them on. Your loan provider should also answer your queries in a prompt manner.
Is pre-payment allowed for personal loans?
- Certain lenders may allow you to pre-pay the loan amount, based on their respective terms and conditions. It is likely that you will be charged a pre-payment fee. Thus, if you intend to pre-pay your loan during the loan tenure, make sure to check if your lender allows this by contacting FinanceBay loan advisor.
Why is it important to have a good credit score?
- If you have a good credit score, the chances of you being offered the loan at a low interest rate are quite high. Your credit score indicates your creditworthiness and your repayment ability. If you are looking to apply for a personal loan, it is advisable to maintain a credit score that is over 750. Individuals with a very low credit score may be denied a loan altogether, while those with a moderate credit score may be offered a personal loan, but at a high interest rate.
5 Things to Know Before Your First Loan Application
- 1. Credit score and credit history. A good credit score and credit history show lenders that you pay your credit obligations on time.
2. Income.
3. Monthly debt payments.
4. Assets and additional applicants.
5. Employer's contact information.