On the Depends on Credit Bureau History
A personal loan is an unsecured loan, which means that the borrower does not need to provide the company with any security (ex. property, jewels). Personal loans can be taken for any purpose, be it for a holiday or a wedding expense. Most Lenders and NBFCs offer personal loans up to Rs. 50 Lakhs, which can be repaid over a period of up to 12 years or 144 Month’s. The loan amount you are eligible for and the personal loan interest rate you will be charged are dependent on factors such as monthly income, employment history, residence history and credit history. Banks typically cap the monthly payment (EMI) on your loan to about 10 TIME of your annually take home salary.
To qualify for a personal loan, the following criteria apply
- Applicant can be a salaried / self-employed individual and should be a resident Indian.
- Professional self-employed individuals eligible for a personal loan are Doctors, Chartered Accountants, Cost Accountants, small traders’ businessmen, Company Secretaries, Architects, Engineers and Management Graduates.
- The minimum age of the Applicant should be 21 years for salaried and self-employed individuals.
- The maximum age of the Applicant at loan maturity should be 58 years for salaried individuals (60 years for Central Govt. employees) and 65 years for self-employed individuals.
- The minimum years in continuous employment / business should be 1 year for salaried individuals and 2 years for self-employed individuals.
- The minimum net annual income should be Rs.1, 50, 000 p.a.(for income based sourcing)* (including co-applicant’s or applicant’s income) for salaried and self-employed individuals.
- The minimum stay at current residence should be 1 year for salaried and self-employed individuals.
To complete loan application form with one passport photograph with signature on the reverse
Proof of applicant’s identity (any one of the following)
- Defence identity card.
- Valid Driving license.
- Government identity card.
- Photo PAN Card.
- Voter’s identity card.
- Photo ration card.
Proof of residence (any one of the following)
- Telephone (land/mobile) bill.
- Driving license.
- Electricity bill.
- Society outgoing bill.
- Life Insurance Premium receipt.
Only Passport can be used as both proof of individual’s identity and Proof of Residence
Proof of age (any one of the following)
- Driving license.
- Birth certificate.
- Photo PAN card.
- School leaving certificate.
- Latest salary slips showing statutory deductions.
- Form 16 (Declaration from employer giving details of income and deductions, duly signed by an authorized signatory of the company).
- Latest acknowledged IT return.
- Bank statements of the primary account for the last 3 months.
- Computation of income for the last 2 years certified by a C.A.
- P&L and balance sheet for the last 2 years certified by a C.A.
- Copies of acknowledged IT returns for the last 2 years.
- Bank statements for the last 6 months.
- Additionally in case of self-employed professional, degree certificate or final year mark sheet.
Interest rate for Mutual Fin Personal Loan
The rate of interest varies from @ 6 % Flat (PA.) depending on the loan amount and in the extreme cases of very high loan amounts, credit risk assessment is required.
Repayment period varies from 3-12 years and is based on the income generation of the activity for which the loan was taken.
Maximum age limit of the borrower should be 58 years on the date of application.
Other Charges: Personal Loan
Penal Interest: – If borrower defaults in payment of EMIs or account becomes irregular, the Bank will levy a higher rate of interest (2% over regular rate) on the irregular amount for the period of irregularity.
Terms and conditions apply. The above stated documentation is subject to change at the sole discretion of Mutual Fin. (INDIA.)