What is Personal Loan?
Personal loan means you will get fund from any bank or NBFC for their personal work as wedding, travel, home renovation, children’s higher education, and medical emergencies. A personal loan is unsecured loan means no collateral and helps you meet your current financial needs. It is Unsecured Term Loan for Short Term to Individual purpose.
What is criteria for personal loan?
- Salaried individuals ( salary >=Rs 25,000/-)
- Resident Indian Only (No NRIs)
- Employees of Government, PSU, MNC, Listed companies and reputed Public and Private limited companies only
- If employed with Pvt. Ltd. Co. then below additional norms to be met:
- Minimum total employment of 3 years
- PF deduction by employer
- Minimum Turnover of Rs 10 Crores and minimum PBT of 1 Cr. in latest FY
What should be Minimum Educational Qualification for Personal loan?
- Minimum to be Graduate or Diploma holder in Technical fields like ITI Diploma.
What should be Age Norms for Personal loan?
- Minimum age at loan inception: 25 years
- Maximum age at loan maturity: 60 Yrs
- Deviation for higher age up to 2 years can be considered basis proof of extension
What should be Employment Norms?
- Borrower whose income considered to have minimum 2 years of total employment and minimum 1 year of current employment
- Funding only to confirmed employees. Where present employment less than 6 months, confirmation letter from employer to be documented.
Documents required for personal loan:-
- ID proof.
- Address Proof.
- DOB Proof.
- Inocme Proof.
- Signature proof.
- Photo Proof On. Application form ( Pssport size Photo).
KYC (Know Your Customer) know your customer
Documents Required for Salaried Employee: –
|ID Proof/Birth Certificate||Passport, PAN Card, Aadhar Card, Voter ID Card, Identity Card issued by Government Body|
|Residence Address Proof||Passport, Aadhar Card, Voter ID, Issued by Government Body Identity, Electricity Bill, Water Bill, House Tax Receipt, Bank Statement, Sale Deed of the property, if owned|
|Income Proof||1. Latest 3 Salary Slip|
2. Form 16/Form 26 AS ITR
3. Bank Statement of last 3 months showing salary credit of all applicants
4. Any other bank statement for the last 3 months from where your EMI is going.
Note:- Pay only through direct bank credit
|Signature certificate||1. Passport2. PAN card3. Bank attested signature proof|
How Can We Calculate loan Eligibility ?
It’s totally depend on your in hand salary and obligation(your running EMI and other liability such as credit card obligation )
We calculate all this by FOIR system ( Fixed obligation and income ratio)
Take FOIR 60% means your 60% salary is eligible for LOAN EMI and 40% salary will use for your personal monthly expenses like monthly expense of family and child education and others.if you have taken another loan already than that loan EMI will be deducted form your eligible EMI
If your salary is Rs 60,000/-
Than (fixed obligation income ratio) FOIR 60% of Rs 60000= Rs 36000/-
And suppose that your two loan running EMI is Rs 2000/- and Rs 4000/- is total Running loan EMI will be Rs 6000/-
Than your New Eligible EMI will be = FOIR60%(salary)- Running EMI
It means now you can pay a fresh EMI of Rs 30,000/-
Than we will calculate loan amount on this Fresh eligible EMI , Below is loan amount calculator :-
What will be Tenure and Rate of interest?
Rate of interest is depends on company category in which employee is working. It starts from 10.50% to 22%. Tenure will be from 12 months to 60 months.
What is financial obligation meaning in Personal Loan?
Any type of debt , liability taken form bank or any other sources is called financial obligation such as any type of loan , OD account, credit card etc. It’s represent any type of outstanding debt.
During Loan application process, bank count monthly obligation which customer repay each month to bank. Bank also count 5% of total outstanding of credit card limit.
Monthly obligation= Total current running loan EMI+ OD interest per month average+ 5% of total outstanding of credit card limit..