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Personal Loan 

A personal loan is an unsecured capital provided by the financial institutions that are given on the basis of different criteria like employment history, repayment capacity, income level, profession and credit history. This is also known as the consumer loan as which is kind of a multi-purpose loan, used for meeting your immediate needs. 

 

Types Of Personal Loan

There are different types of personal loans. These loans can be secured or unsecured. Common loans are available in India.

  • Festive loans: the banks usually provide loans at discounted rates during the time of the festive season to drive more customers. These are the short term loans that are beneficial for individuals who want to borrow a small amount of money.
  • Consumer durable Loans: these are the pans provided to avail the purchase of the goods like the television, computers, washing machine and so on. You can easily avail of upto 1 lakh in this loan.  
  • Gold loans: these are the easiest loan to avail of. Gold loans are the easiest to get depending on the current gold rates.
  • Marriage loans: another popular loan is the marriage loan. The amount can be varied depending on the financial background of the person. The interest rate is set according to the current market rate. It is higher during the peak wedding season.
  • Vacations loans: people often tend to go on vacation which requires a good amount of money. One can easily avail of the vacation loan it depends on the personal wealth and the destination they are planning to go on a vacation to.

 

Benefits And Feature Of Personal Loan

Personal loan offers come with many attractive features and benefits to make it easier for a wide range of customers to borrow with ease. These are as follows:

– Loan Amount

The amount of the loan offered by the financial bodies can vary from Rs.10,000/- to Rs.100 Lakh. the loan amount allocated depends on the client’s repayment capability, repayment on the loan history or the credit payment. This Depends on the stability of the income of the borrower who has applied. The eligibility criteria vary on the risk-taking capabilities of the lender.

– Personal Loan Interest Rate

The minimum interest rate provided by the bank on the personal loan is usually at 10.25% which can lead upto 3-36%. The rate of interest or NFBC to the borrowers depends on the profile of the borrower that includes the information such as the category of the company a borrower is employed with, net take-home salary, repayment history on existing loans and CIBIL score (Credit bureau score).

– Loan Tenure

The loan time offers a flexible time period for the PL they offer. This depends on the loan applicant age and the tie when the loan was applied and the income of the person. Usually, they offer a time period of 12 months to 60 months.

– Quick Processing and Turn Around time

The processing for the personal loan varies from 2-5woking days totally depending on the availability of your documents and your overall profile.

– Personal Loan Processing Fees

The processing fee of the loan is also variable it can go from 1% to 3% of the loan amount plus GST as applicable. The processing depends on the employer you are working with, your income bracket and the complete credit profile. 

– Foreclosure charges on Personal Loan

The loan provider charges early closure fees/penalty which may range from 2% to 4%, depending on the number of EMIs you have paid. This is taken after the disbursal of the loan and even before you apply for the foreclosure of the loan.

– Flexibility to use the loan taken as a personal loan

You have the complete freedom to use the personal funds raised by the personal loan. These funds can be used for multiple purposes.

– No Collateral Security Required

There is no collateral security required when you apply for a personal loan. It is completely provided on the basis of the financial statements and the repayment capacity of a loan applicant along with repayment track on loans/cards.

– Personal Loan Repayment

This loan is offered on the basis of fixed terms (a set time) which also makes it a term loan. The time is fixed for the repayment which depends on the amount you applied for, the time ranges from 1 year to 5 years. 

The loan can be repaid in the form of the EMI’s which has two basic components one is the principal amount and the other is interest charged on the current outstanding amount. 

When the repayment begins the interest component of the EMI is higher and the principal component is lower. As the loan matures the interest component keeps reducing and the principal component increases. 

– Personal Loan EMI

Higher EMI: if the time period is short the amount of the EMI tends to be higher. 

Lower EMI: if the loan tenure is for a long period of time then the EMI is usually lower. 

Interest Rate: if the interest rate is lower the lesser will be the installment.  

 

Documents Required For Personal Loan

Document Salary individuals  Self-Employed Individuals/Professionals
Identity Proof PAN Card/ Valid Passport/ Driving License. PAN Card/ Valid Passport/ Driving License.
Residence Proof Valid Passport Copy/ Electricity Bill/ Rental Agreement Valid Passport Copy/ Electricity Bill/ Rental Agreement
Income Statements 3 month’s salary slips, Form, Income Tax Return Income Tax returns, computation of income, balance sheet with Profit & loss account and all the schedules of the balance sheet. Audited Report if applicable.
Bank Statements 6 months Bank statements of salary account 12 months’ bank statements of current account/Business profile.

 

Personal Loan Eligibility Criteria

You need to check for eligibility before applying for the loan, you need to make sure the amount you want as a loan if you are eligible for the same or not. Different financial institutions have different norms for the loan criteria. Here are the most common criteria for loan eligibility: 

 

Criteria Description Salaried Individuals Self- Employed Professionals
Minimum Age 21 years 23 years 23 years
Maximum Age 60 years 65 years 65 years
Net Income per Month Rs. 17, 500 Rs. 25,000 Rs. 25,000
Working Experience 1 year 2 years 2 years
CIBIL Score 650 700 700
Min Loan Eligibility Rs. 50,000/- Rs. 50,000/- Rs. 50,000/-
Max Loan Amount 75 lakhs 35 lakhs 75 lakhs

 

Why you should consider Personal Loans?

Usually, the ones who are on salary or the self-employed business owners opt for the personal loan to fund their short term financial needs or short-term emergency requirements of funds. These are the fastest way to raise funds with the minimum documentation and without offering any asset as security. 

Currently, there are more than 50 lenders who are offering personal loans in India with very impressive interest rates and flexible repayment options. Here are the top reasons why you should consider Personal Loans:

  • No Security Required: you don’t need to provide any kind of security which is the collateral to the financial bodies for the personal loan. It is allocated on the basis of his/her net monthly income backed by the borrower signing a loan agreement. The agreement consists of the terms and conditions of the loan with a promissory note to repay the loan as per the repayment schedule.
  • The flexibility of using the funds: a personal loan can be applied for any kind of purpose like taking care of the wedding expenses or for vacations or any other personal use. There is no bidding for the end use of the loan and the borrower can flexibly use the funds they applied for.
  • Easy Application process: the application process for the person is way more simplified and easier than any other loan. You need to fill up an application form for the personal loan and submit it with the required documents to the lenders. if the documentation is verified you will be eligible for the personal loan.  Currently, the process has been simplified more as the process has turned online you can submit applications online. 
  • Quick Approval: the personal loans are approved on a quick basis it can be within 24 hours or 48 hours after you submit your application. Currently, many banks are providing personal loans online. 
  • Hassle-free Documentation: there are very few documents required for the documentation of the personal loan. 

Why choose Kundkund Trading and Consultancy for the Personal Loan Application

We at Kundkund Trading and consultancy file the loan on the behalf of the client. We choose the best bank with a nominal interest rate and apply for the same. The loan allotment is totally based on the person’s cibil score and the fulfillment of the criteria stated by the financial body.

Here is the list of the advantages that you get while applying for the loan with Kundkund Trading and Consultancy:

  1. Registration, filing and processing charges for the loan applied is zero(free). You don’t need to pay any amount for the same. 
  2. If you have a good cibil score then the interest rate may get lesser than what you have to give. 
  3. The process of filing, registration is faster than it usually takes. 
  4. The loans registered by us are with authorized banks, it is 100% safe and secure.