Synopsis of Loan
In today’s world, the living standard of individuals are really high. In order to maintain the growing needs to maintain the living standard, you can opt for loans. Loan is nothing but an amount of money you take from a financial institution to meet your needs with the commitment of future re-payment of the principal amount and the interest. Principal is the amount of money you borrowed and the interest is the amount charged for borrowing the money.
Loans can be of two kinds- Secured and Unsecured Loans.
In case of Secured Loan, you can borrow the money against an asset or collateral as a security for the lending institution. In case you fail to repay your loan, the lending institution can take possession of your asset kept as security.
In case of Unsecured Loan, you can borrow money without keeping any asset as collateral to the lending institution. In case you fail to repay your loan, the institution has no right to take possession of any of your asset. The risk factor of financial institution is quite high for unsecured loan, so the interest charged is quite high as compared to the Secured Loan.
Types of Loans
Loans can be of different type as per our requirement. So, here we will discuss about the different types of loans provided by the financial institutions to satisfy our needs.
PERSONAL LOAN
You can take Personal Loan to meet your financial needs such as- any medical emergency, wedding purpose, for any vacation etc. Here, there is no restriction of using this loan. You can use personal loan to satisfy your any demand. Personal Loan is an unsecured loan which involves minimum documentation, easy approval process and competitive interest rates.
The eligibility criteria for Personal Loan are-
- Minimum and Maximum Age limit is 23 years and 58 years respectively.
- Individual must be of Indian Nationality and salaried employee.
- The lender must have minimum of net take home salary of Rs. 20,000.
- The minimum and maximum loan amount of Rs. 50,000 and Rs. 10 lakhs(differs according to the bank) respectively can be taken.
- CIBIL Score should be preferably 750 and above.
- The minimum interest rate starts from 10.99% (differs accordingly)
STUDENT LOAN
To meet the higher education expenses of the meritorious students, student loan is taken. Under this loan, the students with excellent education qualification are able to study in renowned educational institutes in India as well as abroad. Student Loan is a secured loan.
The eligibility criteria for Student Loan are-
- Minimum and Maximum Age limit is 18 years and 35 years respectively.
- Individual must be of Indian Nationality.
- The qualification of the student must be- he/she is pursing graduation/post graduation or any PG Diploma.
- The tangible collateral for the loan depends on the income source and loan amount.
BUSINESS LOAN
To cater to the requirements of the business professionals, business loan is an ideal option. The requirements can be- business expansion, to meet any financial need of the business etc. Business Loan is unsecured loan which involves minimum paperwork and hassle free approval process.
The eligibility criteria for Business Loan are-
- Minimum and Maximum Age limit is 21 years and 65 years respectively.
- Individual must be of Indian Nationality and self-employed employee.
- The business turnover must be minimum of Rs. 50 lakhs per year, and 2 lakhs of profit.
- The minimum and maximum loan amount of Rs. 5 lakhs and Rs. 50 lakhs(differs according to the bank) respectively can be taken.
- The lender must have 3 years of experience in the current business.
- The minimum interest rate starts from 13% (differs accordingly).
CAR LOAN
Today, owning a car is a bare necessity. With the help of a car, you can maintain a good standard for both personal and professional life. You can easily buy your own car by going for car loan and repaying it through EMIs. Car loan is a secured loan against the car itself.
The eligibility criteria for car loan are-
- Minimum and Maximum Age limit is 23 years and 65 years respectively.
- Individual must be of Indian Nationality and can be salaried, self employed employee or businessman.
- The lender must have minimum of net take home income of Rs. 18000.
- The maximum loan amount of Rs. 50 lakhs(differs according to the bank) can be taken.
- CIBIL Score should be preferably 750 and above.
- The minimum interest rate starts from 8.7% (differs accordingly).
HOME LOAN
If you want to buy your own house by taking a loan, you can opt for Home Loan. Home Loan is top selling banking product to cater to the need of the customer.
Home Loan can be of following types-
- Home Conversion Loan
- NRI Home Loan
- Home Purchase Loan
- Home Construction Loan
- Home Improvement Loan
- Bridge Loan
- Home Extension Loan
- Stamp Duty Loan
- Land Purchase Loan
- Balance Transfer Loan
Home Loan is a secured loan against the home itself.
The eligibility criteria for home loan are-
The minimum and maximum age limit are – 24 years and 61 years respectively.
The minimum interest rate is 8.35% (differs accordingly).
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Procedure to get Personal Loan
The process to get Personal Loan is very easy and customer-friendly.
Here we will discuss, the procedure to get Personal Loan-
Firstly you need to decide the loan amount you need to lend. Then you need to compare the interest rates and other features of different financial institution. After comparing, you need to figure out and decide on that lending institution that suits your need fully. Then, you need to satisfy the eligibility criteria (including your CIBIL Score) of the financial institution to apply for the loan.
To apply for the loan, you need to submit the required documents along with your loan application. The following documents need to be submitted-
- Last 3 months salary slip.
- Photocopy of Company ID card.
- 2 years old salary slip or appointment letter.
- Last 6months bank statement (where salary is credited).
- Photocopy of AADHAR Card.
- Photocopy of PAN Card.
- Latest Property Tax Receipt (if own house) Or Notarized Rent Agreement.
- 1 Passport Size Photograph.
- Personal Loan Repayment Schedule/SOA (Statement of Account) i.e, Personal Loan EMI statement from 1st till date.(IF YOU ARE ALREADY HAVING A PERSONAL LOAN)
After successful submission of the required documents, the verification process of the institution starts. You need to cooperate for physical verification and on calls too.
Based on the positive verification process, your loan application gets approved.
Following the approval of the loan, the banking officials contact you for the disbursement agreement.
