Important Things you should know before applying for Personal Loans

Important Things you should know before applying for Personal Loans
Important Things you should know before applying for Personal Loans

Now a days, personal loans are become common commodity and every financial institutions and NBFCs (Non-Banking Financial Company) are providing personal loans to its customers. Some of them are approaching customers with attractive schemes and marketing gimmick to attract customers. However you should be aware about the complete personal loan product and the liabilities which you are going to be bound before you apply.

  • Personal loans amount for an eligible customers vary from financial institutes to NBFCs, some of them provides loan up to 30 lakh based on Credit Policies and eligibility.
  • Normally the rate of interest will be fixed across tenure of the loan, the terms and conditions of the interest rate would be mentioned in the loan agreement.
  • There will be personal loan processing fees depends upon the relation with the customers, some banks may waive off the charges. Normally 3% of the loan amount is the processing fees and varies between 1% – 3%.
  • The loan tenure will vary from 5 years to 8 years depends on the loan amount and the financial institution.
  • We strongly suggest you to kindly read the loan agreement and ensure that you have understood the key elements like interest rates, loan processing fees, pre-payment charges, loan top-up charges, etc before signing the agreement.
  • Normally customers can prepay the personal loan post 6 months of the loan disbursement , however its vary from bank to bank.
  • By default, interest on your personal loan accumulates and calculated on daily basis, however it is payable as Equated Monthly Instalment (EMI) on the due date
  • Your personal loan EMI can be payed through account debit using Electronic Clearing System (ECS) or by setting up a Standing Instruction (SI) from your bank account, or through Post Dated Cheque (PDC).
  • You should ensure that you pay your EMI on the due date because non payment of EMI on due date will attract penalty and it would impact your credit rating (reporting to Credit Bureau-CIBIL)
  • The bank will inform you by written or electronic mode for any changes in the interest rates and terms and conditions time to time.

Here are the lists of documents which are required for the processing of personal loan by the financial institutions:

  • List of documents required for Salaried professionals :
    • Proof of Identity:- Passport / driving license / voters ID / PAN card /Aadhaar Card
    • Proof of Residence:- Leave and License Agreement / Utility Bill (not more than 3 months old) / Passport (any one).
    • Proof if Income : Latest 3 months Bank Statement (where salary/income is credited) and latest Form 16, Salary slips for last 3 months.
  • List of documents for Self-Employed professionals:
    • Proof of Identity:- Passport / driving license / voters ID / PAN card /Aadhaar Card
    • Proof of Residence:- Leave and License Agreement / Utility Bill (not more than 3 months old) / Passport (any one).Income proof (audited financials for the last two years).
    • Business / Current Account Latest 6 months Bank statement.
    • Office address proof.
    • Proof of residence or office ownership.
    • Latest 2 years ITR along with computation of income, B/S, P&L a/c with all schedules certified by a CA
    • Business continuity proof: Trade license / establishment/sales tax certificate)


admin is a cutting edge technology enabled financial services blog focussing on Small and Medium Enterprise Loans (SME Loans), Personal Loans ( Consumer Loans), Home Loans (Housing Loans) and Education Loans ( Study Loans). We strive to provide relevant information about the loans, whom to approach for the loans for your needs, requirements to fulfil the loans etc. is an independent blog which provides usefull insights about Small and Medium Enterprise Loans, Personal Loans, Home Loans and Education Loans and have no connections or similarities with any of the financial institutions in India or abroad. The term came from the thoughts that incredible India needs incredible people, process and finance to build the nation for a stronger and prosper tomorrow. The power of consumer to lend capital from financial institutions for the dream project is the key towards the growth of successful future!

28 thoughts on “Important Things you should know before applying for Personal Loans

  1. Thanks , I have recently been searching for info about this subject for a long time and yours is the best I’ve found out till now. But, what about the bottom line? Are you sure in regards to the supply?

  2. you are in point of fact a just right webmaster. The site loading speed is incredible. It kind of feels that you are doing any distinctive trick. In addition, The contents are masterpiece. you have done a wonderful process on this matter!|

  3. Hello there, simply changed into aware of your weblog through Google, and located that it’s really informative. I’m going to be careful for brussels. I’ll appreciate in the event you proceed this in future. A lot of folks will be benefited out of your writing. Cheers!|

  4. Spot on with this write-up, I honestly believe this amazing site needs a great deal more attention. I’ll probably be back again to read more, thanks for the advice!|

  5. Greetings from Los angeles! I’m bored to tears at work so I decided to browse your website on my iphone during lunch break. I really like the knowledge you present here and can’t wait to take a look when I get home. I’m amazed at how fast your blog loaded on my mobile .. I’m not even using WIFI, just 3G .. Anyways, superb blog!|

  6. Its very difficult to find a quality content blog on the web, but your blog gives the informative & quality post. Get more stock market information from Epic Research.

  7. An fascinating dialogue is value comment. I believe that it’s best to write more on this subject, it might not be a taboo topic however generally individuals are not enough to talk on such topics. To the next. Cheers

  8. I just want to tell you that I’m beginner to blogs and actually loved you’re web blog. Most likely I’m going to bookmark your site . You absolutely have fantastic stories. Thanks a lot for revealing your web-site.

  9. A formidable share, I simply given this onto a colleague who was doing just a little analysis on this. And he in reality purchased me breakfast because I found it for him.. smile. So let me reword that: Thnx for the treat! However yeah Thnkx for spending the time to debate this, I really feel strongly about it and love studying more on this topic. If doable, as you turn into expertise, would you mind updating your blog with extra details? It’s extremely useful for me. Big thumb up for this weblog publish!

  10. Hmm it seems just like your website ate my first comment (it was super long) therefore
    i guess I’ll just sum it things i had written and say, I’m thoroughly enjoying your blog.
    I as well am an aspiring blog blogger but I’m still unfamiliar with
    everything. Do you have any points for newbie blog writers?
    I’d genuinely appreciate it.

  11. Excellent goods by you, man. I’ve understand your
    stuff previous to and you’re just too magnificent. I
    really like what you have acquired here, really like what you’re saying and the way that you say it.
    You make it enjoyable so you still take care of to hold it sensible.
    I can’t wait to see significantly more by you.

    This is certainly actually a tremendous web site.

  12. Since the admin of this website is working, no hesitation very shortly it will be renowned,
    due to its quality contents.

  13. You completed several good points there. I did specific searches on the issue and found many people can relate with along with your blog. Fantastic post!

  14. I’ll right away grasp your rss as I can’t in finding your e-mail subscription hyperlink or newsletter service. Do you’ve any? Please allow me know so that I could subscribe. Thanks.

  15. Your mode of telling everything in this post is the truth is fastidious, all be capable of effortlessly keep in mind it, Thanks a whole lot.

  16. If you are going for finest contents like myself, only visit see this web site on a regular basis because it provides quality contents, thanks

  17. I am really impressed with your writing talents as neatly as with the layout in your blog. Is that this a paid theme or did you modify it yourself? Either way stay up the excellent high quality writing, it is rare to see a great weblog like this one nowadays..

  18. I had been wondering if you considered changing the layout of your website? Its very well written; I adore what youve got to say. But you could possibly could a tad bit more in the way of content so people could get in touch with it better.
    Youve got a great deal of text for just having one or 2 pictures.
    You may could space it all out better?

Leave a Reply

Your email address will not be published. Required fields are marked *