Personal Loan FAQ
What is a Personal loan?
Personal Loan is an unsecured loan for personal use which doesn’t require any security or collateral and can be availed for any purpose, minimum documentation and speedy clearance (within three to seven working days of applying). And there is no monitoring of ‘end use’ — you can use the loan for any purpose you like.
How do I take a personal loan?
Check out with different banks who are offering you the loan for the best offers. Find out the eligibility criteria and the documents required to submit before you apply.
What are the Income Criteria’s for Salaried?
A Salaried Individual needs to have Minimum Net Take Home Salary of Rs.15000/- per month, it varies from Bank to Bank.
How much loan am I eligible for?
Loan eligibility depends upon various factors which differ from bank to bank. The main factor of course, is your ability to repay the loan FOIR (Fixed Obligation to Income Ratio) that does not exceed 50% to 60%. Also your profile, dependent on other factors like the company you are employed with, also your salary and your credit history. Do make sure to check all such other eligibilities before applying.
What is the maximum tenure of personal loan?
Personal loan is a short tenure loan. Most of the banks provide you loan for maximum 5 years (60 months).
What is an EMI?
An EMI, equated monthly installment, is the amount of money to be paid to the bank or lender on a monthly basis. It consists of the principal amount and the interest on said amount, equally divided by the number of months in the loan tenure. The EMI is paid on a fixed date of the month until the full amount has been repaid. Calculating your EMI in advance can help you plan your budget, because you will know exactly how much money to pay each month
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 11.29% to 24% depending upon individual’s profile, the company you are employed with, the policies and the scheme you opt for.
Are there any additional charges?
There are usually 2 types of charges that are levied-
- When applying for a personal loan. Banks also do charge a processing fee of 2-3% of the Loan amount. This varies from lender to lender. This fee will be deducted from the disbursal loan amount payable to you.
Can I have a co-applicant for a Personal loan?
Yes. This can help you increase the loan amount you are eligible for as the income of the co-applicant is also taken into consideration.
How soon can I get my loan amount?
Usually banks promise to disburse your loan within seven working days. However to avoid further delay, it is recommended to keep all your documents ready, especially the postdated cheques . The loan is disbursed only after the completion of all required documents are submitted.
How do I repay my loan?
You can repay the loan in Equated Monthly Installments (EMIs) through postdated – cheques, Standing Instructions and ECS facility.
Existing Personal Loan customer get an additional loan amount?
Yes, you might be eligible for an additional loan amount if it has been a year or more since you have availed of your loan.
What is CIBIL?
TransUnion CIBIL Limited is India’s first Credit Information Company, also commonly referred as a Credit Bureau. CIBIL collect and maintain records of individuals’ and non-individuals’ (commercial entities) payments pertaining to loans and credit cards. These records are submitted to us by banks and other lenders on a monthly basis; using this information a Credit Information Report (CIR) and Credit Score is developed, enabling lenders to evaluate and approve loan applications. A Credit Bureau is licensed by the RBI and governed by the Credit Information Companies (Regulation) Act of 2005.
What is CIBIL Score or credit score?
CIBIL score is a tool for lenders to check the borrower’s credit worthiness and capacity to repay loans. A Credit Score or the CIBIL Score is a three-digit numeric summary of your credit history. CIBIL score is calculated by the bureau based on the information that is provided to them by lenders. CIBIL score ranges from 300-900. If you have a CIBIL score more than 750, it means that you have a good CIBIL score.
Does makemyloans.Com charge me for its services?
No makemyloans.Com services come to you free of charge. We look forward to assisting you on your path to success. Our experienced personnel are available for a free consultation for your signature loan.