How long does it take to get a Personal Loan?

Application for Online

For online or digital banks increasing their reach and reducing processing time, online credit applications get much quicker than offline. If you apply to a personal loan on offline mode, even if you don’t have to go to the bank, you have to wait until you first check and submit the documents collected from your home by the bank representative. If something is missing, it is another day or two.

You can only search and upload your documents with an online loan application and any incomplete documents are found automatically and the request can be submitted within a few minutes. Therefore, the fastest way to obtain a quicker personal loan is via the online application process, if your bank or NBFC allows online application.

Eligibility

Banks / NBFC, pre-approved personal loans are usually given to consumers with a strong credit background or who are willing to repay their duties in the right way. Customers are also offered if they have no credit history that refers to parameters such as income and saving history. If you are a private bank customer, you can log in or check your eligibility for Internet Banking using the mobile app.

Banks typically offer a pre-approved personal loan to clients, who have a good record of paying their duties. This is also sold at lower rates of interest. This is also given if consumers have no records of credit such as income and savings history criteria.

How much do you borrow?

It depends generally on your salary and varies depending on whether you’re working or self-employed. In general, banks limit the amount of the loan to not more than 40-50 percent of your monthly income.
Any current loans that the borrower holds will also be taken into consideration when determining the volume of personal loans. The loan value for the self-employed is calculated on the basis of the income received in conjunction with the recent accepted profit / loss statement, whereas any other liabilities (such as existing business loans etc.) he might have taken care of.

How do banks decide the maximum amount of the loan?

While the criteria for credit penalties may vary from bank to bank, certain key factors that determine the maximums you can receive are your credit score, current income and liabilities. A high credit score (closer to 900) means you have correctly serviced your previous credit card loans and/or debts, leading the lenders to feel they are a secure borrower, which results in a higher credit penalty.

You have direct repercussions on your repayment capability in your current income level and liabilities (existing credit card duties, unpaid loans, existing EMIs, etc.). Therefore, if you have lower earnings or a large number of unpaid credit card bills or outstanding loans EMI, you will receive a lower amount of personal credit than you have higher revenues or lower liabilities.

Interest rates fixed or floating

The EMIs stay set for a fixed rate personal loan. Floating rate means that EMIs are continuing to decline as they follow the method of calculating the balance of interest payments for a personal loan. In compliance with the new MCLR laws, floating rates may be updated on a half-yearly basis or on an annual basis.

Difference between reduction and flat rate

As the name implies, the borrower only pays interest on the outstanding loan balance, which is the remaining balance after the main repayment is reduced. In a flat-rate scenario, the borrower pays interest throughout the loan term on the whole loan balance. The interest payable therefore does not decrease even as the borrower makes regular EMI payments.

Documents required for processing Personal Loan

Proof of Identity Aadhaar card, pancard,passport, driving license, voter id, Ration card
Proof of Address Passport, driving license, aadhaarcard, voter id, gas bill, bank statement, rental agreement
Proof of Income Salary slip, Bank statement, Bank passbook, copy of ITR, Audited Balance Sheet, Profit and Loss Acoount Stement.
Additional Passport Size Photo


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