1. A personal loan can be used for?
A personal loan can be used to meet any personal financial requirement or to repay your credit card bill, to buy electronic items, to take a vacation or to even meet the expenses of a wedding or any other function.
2. What is the minimum tenure of a personal loan?
Most banks will provide personal loan for a minimum of 1 year.
3. How can I repay my personal loan?
Personal loan can be repaid in equal monthly instalments or EMI. You can provide a post-dated cheque or can give a standing order with your bank or through electronic transfer.
4. Is part- prepayment allowed on my personal loan?
Personal loans can be prepaid in parts or fully at any stage. Some banks might charge a prepayment penalty whereas some banks will not. Some banks will not allow the part-prepayment. So, check all the documents before finalising with the bank.
5. Can I club my income with my spouse to take a personal loan?
Yes, you can club the income of your spouse to boost your eligibility to avail a personal loan.
6. How much personal loan can I take?
The banks do not usually let you take a loan exceeding 30- 40 percent of your net salary.
7. What is the minimum loan limit offered for personal loan?
Generally, the minimum amount limit that one can take a personal loan is Rs.1,000.
8. What is the maximum loan limit offered for personal loan?
Generally, the maximum loan limit is Rs.15 lakhs.
9. Do I need to submit any security or collateral to take a personal loan?
No, you don’t have to provide any security or collateral to take a personal loan.
10. Do I get to choose between a fixed and a floating rate of interest for the personal loan?
Yes, you have the option to choose either the fixed or floating rate of interest.
11. What is the rate of interest that will be charged on my personal loan?
The interest rate varies from banks to banks and it is within 14-26 percent depending on your profile and the scheme that you opt for.
12. How many days does it take for the bank to disburse the personal loan amount?
Banks disburse the loan within 72 hours to 7 working days provided all the documents are in place.
13. Will the banks check my CIBIL score while reviewing my application?
Yes, your CIBIL score and credit report will be seen by banks and the minimum CIBIL score requirement is 750+.
14. Will the CIBIL score affect my personal loan interest rate?
Yes, the CIBIL score affects the interest rate offered to you. If your CIBIL score is high and if you have a good repayment history, then the bank will offer you a lower interest rate.
15. How will I be eligible for a relationship discount?
If you have been a customer for a particular bank for a while, then the bank might reduce the personal loan interest rate or other such charges. Some banks will also provide you additional services.
16. What are the documents required to seek a personal loan application approval?
You need to submit an identity proof as well as residence proof, your latest salary slip, form no. 16, last 6 months bank statement and a passport sized photograph that is to be affixed on the application form.
17. Do I need to open a bank account to service my personal loan?
If you don’t have a bank account with the bank, it is not mandatory to apply for one. You will be eligible for a relationship discount if you apply for a loan with your existing banker.
18. How do I stop executives from calling me to let me know about other loans?
Some banks let you register yourself for ‘Do Not Disturb’. The executives will not disturb you with cold sales calls.
19. What is the best way to apply for personal Loan?
The best way to apply for an personal loan is by using the online loan application tool at BankBazaar.com The tool can be accessed on this page allowing users to choose personal loan from various banks and NBFCS as per their selection.
20. What is the minimum and maximum amount of Personal Loan that I can get?
Various banks and NBFC’s offer personal loans ranging from a minimum amount of Rs. 1000 to a maximum amount of Rs. 15 to Rs. 20 Lakhs. Loan amount (maximum and minimum) depends on the underlying bank as well as the personal financial details of the loan seeker.