Personal Loan in Purnea, Bihar

Personal loan is an unsecured loan that can be flexibly used to pay for a variety of expenses. As no collateral is required to get this loan, the risk involved for lenders is greater than that applicable to a secured loan. There are thus multiple factors that a lender considers when deciding personal loan eligibility of a prospective borrower.

Take that vacation you have been delaying or complete the home renovation that has been pending. With a Personal Loan , you can do it all. However, to apply for a loan and to repay it on time, you need to provide a basic proof of employment and income with adequate identity proof.

• Age of the applicant should be between 21 - 60 years
• Applicant should be a salaried individual, salaried professional or self-employed with min turnover of 40 lakhs
• Minimum monthly salary should be Rs. 20,000
• Applicant should have 2 years experience in current occupation
• And 1 year residing in current home address
• Need to be working for a private limited company or the public sector with salary credited via bank transfer
• Total work experience should be at least 2 Years
• Minimum 3 years business vintage if applicant is self-employed

Personal loan is an unsecured loan that can be flexibly used to pay for a variety of expenses. As no collateral is required to get this loan, the risk involved for lenders is greater than that applicable to a secured loan. There are thus multiple factors that a lender considers when deciding personal loan eligibility of a prospective borrower.

• Processing fee
• Goods and Services Tax or GST
• Charges levied for issuing duplicate statement
• Penalty for defaults
• Penalty for prepayment and part payment of loan

A personal loan is given for a stipulated time period. This period is known as the loan repayment tenure. After you have taken a loan, you are expected to pay the debt off by the end of the loan repayment tenure through EMIs. However, after availing a loan, if you decide to pay off your debt before the end of the loan repayment period, it is called pre-payment or foreclosure.

Types of Prepayment:

There are 2 types of prepayment. They are full prepayment and part prepayment and part payment.

Full Prepayment: If you are paying off the whole outstanding loan amount before the end of the loan repayment tenure, it is known as full prepayment.

Advantages of full prepayment:

• You can avoid paying hefty interest on your loan amount.
• If you have the money to pay off your debt completely, you might as well get rid of the debt.
• You can avoid paying prepayment interest as well, if you have taken the loan from a lender who does not charge an interest on prepayment of the loan.

Disadvantages of Full Prepayment:

• If your lender charges a penalty on prepayment of the loan amount, you might have to pay a big chunk of money for pre-paying your loan.
• Before you foreclose a loan, check the other factors related to it. Foreclosing a personal loan means that you would be paying out a huge sum of money at once. This might not always be the best option.

Part pre-payment: If you are paying off a part of the outstanding loan amount before the end of the loan repayment tenure, it is known as part pre-payment.

Advantages of part pre-payment:

• You can choose to pay off a part of your outstanding loan amount if you have some readily available money.
• Part paying your loan will reduce the outstanding principal amount which, in turn, will reduce the effective EMI amount.
• The overall interest that you pay will also reduce significantly.

Disadvantages of part pre-payment:

• If you do not make the part payment soon enough, you will not be able to maximise your savings.
• If your lender charges a fee for part payment of personal loans, you might have to spend a significant amount of money for the same.

There are a number of repayment modes which are offered by lenders. Although these modes might differ from lender to lender, the most common modes of repayment can be summed up as follows:

• Electronic Clearance System or ECS: The ECS or Electronic Clearance System is one of the most commonly used repayment methods. It is an electronic mode through which funds are transferred from one bank to another.
• Post Dated Cheques or PDCs: Post Dated Cheques, as the name suggests, are cheques which are issued by you for a future date. The lender will use these cheques on the mentioned date to deposit or encash the amount mentioned on it.
• National Automated Clearing House: The National Payment Corporation of India (NPCI) offers a program called NACH to all the banks and financial institutions. The NACH allows the processing of transactions in real time. This method can be used for your loan repayments.
• Debit mandate or standing instruction: You can give an instruction to your bank to pay off a particular amount of money to another bank or bank account at a regular interval. This is known as standing instruction or debit mandate. Your bank will be paying off the stipulated amount towards the repayment of your loan on a regular basis through this system.

One can use your loan for any purpose as long as it is legal. However, there are certain lenders who provide different loan products on the basis of the purpose which is mentioned by the borrower in the loan application. On the basis of utilisation, these are the different types of personal loans which can be availed in India:

• Personal Loan for Wedding:As the name suggests, a loan which is offered particularly for the purpose of meeting the expenses of a wedding is a wedding loan.
• Personal Loan for Home Renovation: A home renovation loan is availed to meet the expenses of repairing or renovating your home.
• Personal Loan for Vacations: A holiday loan is specially designed for vacations. You can avail a loan for your vacation and pay the expenses on a later date through easy EMIs.
• Personal Loan for Pensioners: A loan which is specifically offered to pensioners is known as a pension loan.
• Personal Loan for Festivals: Certain lenders offer a personal loan exclusively for festivals. If you are looking for a loan to make arrangements for a festival, you can apply for a festival loan.

A personal loan customer can avail an additional loan amount through the top-up facility over his/her existing loan. The loan amount will be subject to the terms and conditions set by the financial lender, while the interest rate may be the same as the existing loan or could be up to 1% more than the interest rate of the current loan. The tenure of the top-up loan will be subject to that of the existing personal.

Key features and benefits

• Existing personal loan customers are eligible for the loan top-up provided that they have paid their EMIs regularly and have no pending payments.
• Quick or instant disbursal of the top-up loan amount.
• Minimum documentation required.
• Zero processing fee offered by a number of lenders.
• No collateral required.

The personal loan balance transfer facility gives customers the benefit of transferring their existing loan to another financial lender. This can be done if another financial lender is offering a better interest rate, the tenure is a lot more flexible, they wish for a top up on their existing loan, etc.

Key features and benefits

• Get a reduced interest rate on the existing loan amount.
• Option to top-up the loan.
• Avail flexible repayment options.
• Avail benefits such as zero processing fee, waiver of last EMI benefit, etc.
• To get better customer care service.

• Credit Clean-up: One of the main factors taken into consideration by lenders is your credit score. Getting a personal loan is easier with a high credit score. If your score is low, you must check your reports to see if there are any errors. Sometimes, simple errors could have an adverse effect on your scores, and if you find any of these, you must report them to CIBIL.
• Rebalancing your income and debts: Lenders ask for proof of income when you apply for personal loans in order to ascertain your debt-to-income ratio. Consider the sale of liquid assets like stocks or earning more through a part-time job to increase your annual income. Doing so will increase your debt-to-income ratio and increase your chances of getting a loan.
• Consider Co-signers/Guarantors: If you are finding it hard to get a personal loan on your own accord, you can apply for one by adding a co-signer or guarantor. The person you choose as a guarantor must have a good credit score. Their main aim is to guarantee that you will repay the loan. However, they will also be liable to repay the loan themselves if you are unable to do so. Picking an individual with a credit score over 750 will considerably increase your chances of getting a personal loan.
• Limit Your Borrowing: It can be risky to ask for more money than you require to meet your financial targets. Make sure that you calculate how much you need and apply only for that specific amount.
• Choose the Right Lender: Every lender has their own requirements when it comes to credit scores and income. When looking for personal loans, pick a lender whose eligibility criteria you meet and apply accordingly. The problem with applying with multiple lenders is that each of them will check your credit score, and each time your full credit report is pulled out, your credit score drops, albeit marginally.

The approval of a personal loan application depends on a number of factors. When you apply for a loan, you should make sure that you are fulfilling all the factors to ensure the approval of your loan application. The eligibility criteria for personal loans may vary from lender to lender, however, there are a number of common criteria which include the age of the applicant, his or her income, credit score, status of employment, and so on. Before you apply for a loan, make sure that all the eligibility criteria are being fulfilled. This will help you avoid rejection of your loan application. Although there are other options which you can resort to in case your loan application gets rejected, it is recommended to double check before applying to avoid the chances of rejection of application.

There are two main modes of checking the status of your loan application. Most lenders offer both online and offline modes through which you can keep tracking your loan status.

• Online Mode: Most lenders offer the option of logging in to their official portal to help you track the status of your loan application. You can use the application number or reference number which is issued by the lender for this purpose. On the other hand, if you have applied for a loan through a third-party aggregator website such as BankBazaar, you can just log in to its web portal and track the status of your loan application directly.
• <Offline Mode: If you are not comfortable using the online platform, you can also track the status of your personal loan application through the offline means. You can visit the branch office of your loan provider and check the status of your loan application. On the other hand, you can also connect with your lender over the telephone through their helpline or customer care number.

For both these methods, you would be required to provide a few basic details such as your name and the application number or reference number. Head to BankBazaar to know more about how to track your personal loan status.

You can easily get in touch with your lender either through their online web portal or in person and request for your loan statement. On most lender websites, you can just log in using your online credentials and provide your loan account number. Once you have tracked your account, you can request for a statement which is either sent to your registered email ID or provided in the form of a PDF file which can be downloaded. Similarly, you can also visit the branch office of the lender from where you have availed the loan and place a request for a statement. In addition to that, you can raise a request for your personal loan statement through phone banking as well.

• Assess the need for your loan
• Do proper research to get the best rate
• Check your credit history
• Review the fine print on your loan document carefully
• Choose your loan tenure by assessing your repayment ability
• Choose an affordable interest rate
• Select your loan amount as per your convenience
• Check your EMIs properly
• Compare the processing fee
• Select fixed or variable interest rate according to your preference

• Do proper research before you apply for a loan
• Do read the fine print carefully
• Do save your money carefully when you are repaying
• Do pay your loan instalment promptly every single time
• Do evaluate your credit score thoroughly
• Do apply for an affordable loan amount

The maximum sum of money that you will be able to borrow from a bank will vary based on a number of factors. If you are a salaried employee, your monthly EMI should ideally not exceed 30% of your monthly pay. Also, the bank/NBFC will take into account if you have any existing loans for which you pay EMIs. Individuals who are self-employed will be offered a loan amount as per the profits that are earned through their business. The concerned individual’s other financial liabilities will also be taken into account. The maximum loan amount offered will also depend on the lender’s own terms and conditions.

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.

Almost all banks provide personal loans. If you need a quick cash loan, traditional banks may not be the right lender for you as they take a lot of time to process the loans.

Comprehensive credit reporting is a system which includes both positive and negative information on a person’s credit file. Before comprehensive credit reporting was introduced, only negative information was included.

You can reduce the EMI for a personal loan by improving/maintaining a credit score over 750. If you have a good relationship with the bank, you can negotiate for a better interest rate or a relationship discount.

Some banks have a lock-in of 6 months to a year while some banks allow you to pre close even after the 1st EMI has been debited from your bank. There may also be restrictions that you can only use your own funds (and not the balance transfer cheque of another bank) to pre-close a loan. In addition, banks may allow pre-closure at no cost or may levy a pre-closure fee (2-5% of the amount being pre-closed). Please ask for clarifications to our or the banks’ loan advisor on all these factors before signing the loan document.

The EMI due date or cycle is dependent on the borrower. It can be the first of the month or 5th of the month. The borrower can choose the day as per their convenience. Some banks do give a set day as their processing day is automated.

It is best to pay your EMI on time. Most banks will tolerate any late payments for 1 or 2 times and if you don’t pay your EMI at all the bank has every authority to seize the car. Furthermore if you default on EMI your credit score will take a hit which will spoil your chances of getting any form of credit in the future.