Personal loan is an unsecured loan which is highly risky for Banks or financial institution. This loan is provided without even any asset or security mortgage.
The applicant is considered eligible for a personal loan only if the CIBIL score is 750 or above.
Personal Loan is a short to medium term unsecured loan, which does not require any collateral/security for disbursal. They are generally disbursed in a few hours to a few days with minimal or no paperwork at all. A key feature of personal loan is no collateral required.. Thus, this unsecured loan can be used to meet a variety of needs ranging from emergency medical expenses to planned expenditures such as home renovation, wedding, family trips,
Downpayment of car loan etc.
Personal loans meant for various purposes use which easily fulfills the immediate needs of individuals.
Personal Loan eligibility
Self-employed (Individuals) include self-employed - Sole proprietors, Partners & Directors in the Business of Manufacturing, Trading or Services etc.
Eligibility Criteria as:
Minimum age of Applicant: 22 years
Maximum age of Applicant at loan maturity: 65 years
Years in business: Minimum 4 years with minimum 2 years in the same Business
Minimum Annual Income: ₹ 100000/- p.a. for Metro Locations & ₹ 75,000/- p.a. for non-metro locations.
Self-employed (Pvt Cos and Partnership Firms) include Private Companies and Partnership firms in the Business of Manufacturing, Trading or Services etc.
Eligibility Criteria as :
Minimum age of Applicant: 22 years
Maximum age of Applicant at loan maturity: 65 years
Years in business: Minimum 4 years with minimum 2 years in the same Business
Minimum Annual Income: 100000/- p.a. for Metro Locations & ₹ 75,000/- p.a. for non-metro locations.
Business must be profit-making for the last 2 years
Personal Loan Documents Required
Proof of age and identity – Passport, Aadhaar card, Voter ID card, etc.
Proof of residence – house registration certificate, sales deed, Aadhaar card, Voter ID card, etc.
PAN Card.
Proof of Income – Form 16, Salary slips, Bank statements, Income Tax Certificate, etc.
Last 2 months' salary slips.
Previous 3 months' bank account statements of your salary account
The interest rate normally charged higher on personal loans as compared to other gold loans, home loans, etc. Under personal loan, no collateral or security involved which leads to a high rate of interest
The interest rate ranges from 10% to 24% p.a.
However, it can vary from person to person. It depends on the salary and CIBIL Score of the applicant. Category of the company also matters.
Risks associated with Personal Loan:
Some of the risks associated with personal loan can be checked by following points;
Interest rates: The interest rates on a personal loan is normally higher than other loans. The rate of interest may be charged less if some asset provided as a guarantee
Early Payment or Payoff penalties: There may some foreclosure charges if you pay off early your personal loan amount. This early payment may be charged with penalties.
Privacy concerns: Some banks and credit union use your details and personal information which can be mishandled as there is less formalities.Although all lenders respect privacy concerns and laws similar to those required for banks.
Apply SBI Personal Loan online at Dialabank.com
Comments