Knowledge Base
Frequently Asked Questions (FAQ)
Personal Loans can be used for a variety of reasons. A Personal Loan can be used for weddings, education, travel, medical or any other general purposes. You can take a Personal Loan when you need money to fund an event or an emergency.
A personal loan can be used for almost any type of expense ranging from big ticket appliance purchases and home renovations to luxury vacations and debt consolidation. Some other cases where personal loans may be useful include payment to unexpected medical bills, investment in business, fixing your car, down payment of new house and much more.
The mandatory documents are: Bank Statements for the last three months, Salary Slips for the last three months, and Address Proof and Identity Proof documents.
Here’s why our Personal Loan is perfect for you: Quick loan payment, No collateral or security needed, Minimal documentation, and Flexible EMI plans with many repayment options.
You must have a regular source of income to avail a personal loan whether you are a salaried individual, self-employed business person or a professional. A person’s eligibility is also affected by the company he/she is employed with, his/her credit history, his/her residential location and other factors as per the lender’s criteria.
Personal loans feature tenure of 1 year to 5 years or 12 to 60 months. In rare cases, shorter or longer personal loan tenures may be allowed by the borrower on a case by case basis.
Consider these key factors: Interest Rates (can range from 10% to 24% p.a.), Repayment Flexibility (check for part-payment or pre-payment options), Processing Fee (even with low interest rates, high fees can increase costs), and Customer Service (ensure adequate support channels are available).
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.
Yes, you can prepay the entire loan outstanding anytime during the loan tenure after 12 instalments, subject to payment of standard pre-closure charges of 2% + GST based on bank policy. No part prepayment is allowed. For prepayment, please visit the nearest branch with a request letter signed by the loan applicant, PAN Card (if cash payment exceeds Rs 50,000), and payment can be made through cash, cheque or demand draft.
Before approving the loan, the lender shares a document with the borrower. This document outlines all the terms and conditions related to the personal loan including the amount of loan sanctioned, the interest rate being applied, repayment tenure, and more. The applicant is required to read all the terms and conditions carefully. Signing implies that both parties are in agreement.
Bank will convey its decision within 4 working days from the date of receipt of the application, provided the application is complete in all respects. The computation of 4 working days shall start from the day on which all documents required for a proper appraisal of the application are provided by the customer to the bank.
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. 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.
Pre-closure means that a customer wants to close the entire principal outstanding amount at one go. Whereas part payment means that a customer wants to repay only a certain portion of the outstanding amount. Please ask our advisor for more details on this when your loan is being processed.
The bank will levy certain ECS bounce charges/penalties. In addition, it will get reported in your credit report. Depending on the severity of the default, it can have serious impact on your future credit possibilities like a home loan, car loan etc. In addition, the banks can also take legal action against the borrower.
Certainly, as it is a measure of your financial status and your loan histories. Maintaining a healthy CIBIL score would ultimately help your application and also the amount of loan you get and also the duration.
Equated Monthly Instalments (EMIs) give you the ease and benefit of paying back the personal loan amount in smaller convenient instalments. The instalments consist of both the principal and interest amounts.