PERSONAL LOAN

Features and Benefits of Personal Loan
A personal loan is an unsecured loan, meaning you don’t need to provide any
collateral or security. This makes it a versatile and accessible financial
solution for various needs.
Key Benefits and Uses of a Personal Loan:
Debt Consolidation
Simplify your finances by combining multiple debts into a single loan with a
lower interest rate. This reduces your monthly payments and makes managing
your debt easier.
Home Renovation
Upgrade your living space or improve the value of your property using a personal
loan to fund home repair or remodeling projects.
Medical Expenses
Personal loans can help you manage unexpected healthcare costs, such as
emergency treatments, surgeries, or hospital bills, without financial stress.
Emergency Expenses
Whether it’s a car breakdown, urgent travel, or unforeseen events, a personal
loan ensures you have the funds when you need them the most.
Personal Loan Eligibility Criteria
To qualify for a personal loan, applicants must meet certain basic requirements.
Lenders evaluate several key factors to determine loan eligibility,
creditworthiness, and repayment capacity.
Eligibility Requirements:

1. Age
   Applicant should be between 21 and 60 years of age.
2. Income
   o Salaried individuals: Minimum net monthly income of ₹15,000
   o Self-employed individuals: Minimum annual business transactions of
   ₹20 lakhs
3. Credit Score
   A CIBIL or credit score of 650 or above is typically required.
4. Debt-to-Income Ratio
   A healthy ratio is preferred to ensure manageable repayment capacity.
5. Employment Stability
   Stable employment or consistent business track record increases approval
   chances.
6. Credit History
   o A good credit score should be consistently maintained
   o Must have a clear repayment history without defaults
7. Residency
   Must be a Resident Citizen of India
   Documents Required to Apply for a Personal Loan
   When applying for a personal loan, you must provide a set of documents to verify
   your identity, income, and eligibility. Below is the comprehensive list of
   documents generally required:
8. Identity Proof (Any one of the following)
    Passport
    Voter ID
    Driving License
    PAN Card
    Aadhaar Card
9. Address Proof / Residence Proof (Any one of the following)
    Passport
    Voter ID
    Driving License
    PAN Card
    Aadhaar Card
    Electricity Bill
    Telephone Bill
    Ration Card
10. Age Proof (Any one of the following)
     Passport
     Voter ID
     Driving License
     PAN Card
     Aadhaar Card
11. Income Proof
     Latest 1-year bank statement
     Last 3 months’ salary slips (for salaried individuals)
12. Employment Proof (for salaried applicants)
     Employment certificate from employer
     OAicial address proof of the organization
13. Business Proof (for self-employed applicants)
     Business registration certificate
     Partnership Deed / Memorandum of Association (MOA) / Articles of Association
    (AOA)
14. GST or VAT Registration (for self-employed individuals/Professionals)
15. Income Tax Returns
     ITR documents for the last 2–3 years
16. Photographs
     Recent passport-size photographs
    Fees and Charges for Personal Loan
    Understanding the costs associated with a personal loan helps you make an
    informed decision. Below are the standard fees and charges that may apply:
    Charge Type
    Processing Fee
    Prepayment / Foreclosure
    Charges
    Late Payment Charges
    EMI Bounce Charges
    Loan Cancellation
    Charges
    Loan Statement Charges
    Part-Payment Charges
    Stamp Duty &
    Documentation
    Important Notes:
    Details
    1% to 3% of the loan amount (plus
    applicable GST)
    2% to 5% of the outstanding principal (may
    vary by lender)
    2% to 4% per month on the overdue EMI
    amount
    ₹300 to ₹500 per bounce (varies by lender)
    ₹1,000 to ₹2,500 (if the loan is canceled
    after disbursement)
    Free or up to ₹200 (depending on the lender)
    Usually 2% to 3% of the part-paid amount (if
    allowed by the lender)
    As per state laws and lender policies
     Fees vary by financial institution and are subject to change.
     Always read the loan agreement carefully for specific terms and conditions.
     Some lenders offer zero processing fee or no prepayment charges under
    special offers.