Basics of a Personal Loan

8/8/2019 Basics of a Personal Loan

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A PROJECT ON PERSONAL A PROJECT ON PERSONAL

LOANSLOANS

B.COM BANK MANAGEMENTB.COM BANK MANAGEMENT



Basics of a Personal LoanBasics of a Personal Loan

WH AT IS A PERSONAL LOAN?WH AT IS A PERSONAL LOAN?

WHO IS ELIGIBLE FOR AWHO IS ELIGIBLE FOR APERSONAL LOAN?PERSONAL LOAN?

WH AT KINDS OF INTRESTWH AT KINDS OF INTRESTRATES ARE OFFERED ONRATES ARE OFFERED ONPERSONAL LOANS?PERSONAL LOANS?

WH AT IS THE AVERAGEWH AT IS THE AVERAGEINTREST RATE FORINTREST RATE FORPERSONAL LOANS?PERSONAL LOANS?

WH AT DOCUMENTS AREWH AT DOCUMENTS AREREQURIED FOR A PERSONALREQURIED FOR A PERSONALLOAN?LOAN?

HOW

IS A PERSONAL LOANH

OW

IS A PERSONAL LOANREPAID?IS PREPAYMENT OF AREPAID?IS PREPAYMENT OF ALOAN POSSIBLE?LOAN POSSIBLE?

HOW IS A PERSONAL LOANHOW IS A PERSONAL LOANDIFFERENT FROM CREDITDIFFERENT FROM CREDIT

CARD CASH ADVANCES ANDCARD CASH ADVANCES ANDLOAN AGAINST PROPERTY?LOAN AGAINST PROPERTY?



PERSONAL LOAN INTEREST RATE TABLEPERSONAL LOAN INTEREST RATE TABLE

Bank NameBank NameInterestInterest

TypeType

Interest Rates for various loan amountInterest Rates for various loan amount

1 lakh1 lakh 22--5 lakhs5 lakhs 66--10 lakhs10 lakhs >10 lakhs>10 lakhs

Citi BankCiti Bank FixedFixed 16.016.0--22.022.0 16.016.0--22.022.0 16.016.0--22.022.0 16.016.0--22.022.0

FullertonFullerton FloatingFloating 18.018.0 18.018.0 NANA NANA

HDFC BankHDFC Bank FloatingFloating 15.15.55--22.022.0 15.515.5--22.022.0 15.515.5--22.022.0 15.515.5--22.022.0

Barclays Finance PersonalBarclays Finance PersonalLoansLoans

FixedFixed 18.018.0--50.050.0 18.018.0--50.050.0 18.018.0--50.050.0 18.018.0--50.050.0

ICICI BankICICI Bank FloatingFloating 14.014.0--18.018.0 14.014.0--18.018.0 14.014.0--18.018.0 14.014.0--18.018.0

Axis Bank Axis Bank FixedFixed 14.014.0--21.021.0 14.014.0--21.021.0 14.014.0--21.021.0 NANA

SBISBI FloatingFloating 14.014.0 14.014.0 14.014.0 NANA

Citi FinancialCiti Financial FixedFixed 21.021.0 21.021.0 2121.0.0 NANA

ABN Amro ABN Amro FixedFixed 16.016.0--23.023.0 16.016.0--23.023.0 16.016.0--23.023.0 16.016.0--23.023.0

IDBI BankIDBI Bank FixedFixed 16.016.0--20.020.0 NANA NANA NANA

Reliance Consumer FinanceReliance Consumer Finance FixedFixed NANA 16.016.0--23.023.0 16.016.0--23.023.0 16.016.0--23.023.0

Union Bank of IndiaUnion Bank of India FixedFixed 14.7514.75 NANA NANA NANA




Bank NameBank NameIntereIntere

ststTypeType


1 lakh1 lakh 22--5 lakhs5 lakhs 66--10 lakhs10 lakhs >10 lakhs>10 lakhs

Andhra Bank Andhra Bank FloatingFloating 15.015.0 NANA NANA NANA

Canara BankCanara Bank CanCanBudget Budget

FixedFixed 14.514.5 NANA NANA NANA

Bank of BarodaBank of Baroda FloatingFloating 14.514.5 NANA NANA NANA

Bank of MaharashtraBank of Maharashtra FixedFixed 14.014.0 NANA NANA NANADena BankDena Bank FixedFixed 15.015.0 NANA NANA NANA

Oriental Bank of Oriental Bank of CommerceCommerce

FloatingFloating 13.013.0 NANA NANA NANA

Federal BankFederal Bank FixedFixed 16.2516.25 NANA NANA NANA

UCO BankUCO Bank FloatingFloating 13.2513.25 NANA NANA NANA

Vijaya Bank Vijaya Bank FloatingFloating 13.7513.75 NANA NANA NANA

Indian BankIndian Bank FixedFixed 14.514.5 NANA NANA NANA

Bank of IndiaBank of India FloatingFloating 11.011.0--12.7512.75 NANA NANA NANA

Karnataka BankKarnataka Bank FixedFixed 13.2513.25 NANA NANA NANA





ststTypeType


1 lakh1 lakh 22--5 lakhs5 lakhs 66--10 lakhs10 lakhs >10>10lakhslakhs

Indian Overseas BankIndian Overseas Bank FixedFixed 12.512.5 NANA NANA NANA

State Bank of PatialaState Bank of Patiala FloatingFloating 14.014.0--14.514.5 14.014.0--14.514.5 14.014.0--14.514.5 NANA

Corporation BankCorporation Bank FloatingFloating 14.514.5 NANA NANA NANA

J & K BankJ & K Bank FixedFixed 13.2513.25--14.2514.25 13.2513.25--

14.2514.25

13.2513.25--

14.2514.25

NANA

Punjab & Sind BankPunjab & Sind Bank FloatingFloating 13.513.5 NANA NANA NANA

State Bank of Bikaner &State Bank of Bikaner &JaipurJaipur

FloatingFloating 13.2513.25 13.2513.25 NANA NANA

State Bank of State Bank of

HyderabadHyderabad

FloatingFloating 13.7513.75--14.7514.75 NANA NANA NANA

State Bank of IndoreState Bank of Indore FloatingFloating 15.015.0 15.015.0 NANA NANA

State Bank of State Bank of TravancoreTravancore

FixedFixed 14.2514.25 NANA NANA NANA

United Bank of IndiaUnited Bank of India FixedFixed 14.2514.25 NANA NANA NANA

Karur Vysya BankKarur Vysya Bank FixedFixed 12.7512.75 NANA NANA NANA





ststTypeType

Interest Rates for various loan amountInterest Rates for various loan amount1 lakh1 lakh 22--5 lakhs5 lakhs 66--1010

lakhslakhs>10 lakhs>10 lakhs

Tamilnad MercantileTamilnad MercantileBank LtdBank Ltd

FloatingFloating 15.015.0--17.517.5 NANA NANA NANA

Apna Sahakari Bank Apna Sahakari Bank FixedFixed 14.014.0 NANA NANA NANA

South Indian BankSouth Indian Bank FloatingFloating 15.2515.25 NANA NANA NANA

Saraswat BankSaraswat Bank FixedFixed 15.015.0 NANA NANA NANA

Tata Capital Ltd.Tata Capital Ltd. FixedFixed 14.014.0--20.020.0 14.014.0--20.020.0 14.014.0--20.020.0

14.014.0--20.020.0

Kotak BankKotak Bank FloatingFloating NANA 15.515.5--21.021.0 15.515.5--21.021.0

15.515.5--21.021.0

Standard CharteredStandard CharteredBankBank

FixedFixed 16.016.0--16.516.5 16.016.0--16.516.5 16.016.0--16.516.5

16.016.0--16.516.5



How is a personal loan different from credit card cash advances and loan

against property?

Personal Loan Credit card Cash Advance Loan Against Property

Unsecured loan Unsecured Loan Secured Loan

Between 15% and 25% For rollover credit (amountallowed to be rolled over andpaid later) interest can go upto 35%

Between 12% and15.75%

EMIs are higher becauseof high interest rate

Minimum monthly paymentscan be made. However, theinterest keeps on adding up

Since the rate of interestis lower, frequently LAPEquated Monthly

Installments (EMI) turnsout cheaper

Maximum loan eligibilityis determined primarilyby an individual's income

Maximum amount isdetermined primarily by thecredit limit on the card

Maximum loan eligibilityis determined primarilyby the value of theproperty and income

Tenure between 1 to 5years

Can be paid off monthly Tenure maximum of 15years

These are some basics that you should know when obtaining a personal loan. These days, securing a loan is easy.Repayment is the tough bit. When you don't repay on time, the recovery agent may come knocking at your door.When getting a personal loan it is important to ask yourself µWill I be able to pay it off?Some things which can help you pay back your personal loans are:Pay off your credit cards: Try to pay off your credit cards as soon as possible, since credit card debts inadvertentlyhamper loan payments.Budget your spending: Once you have taken a loan, ensure that you budget your spending, so that if in any unforeseenycircumstance you cannot make a monthly payment, your savings will help you out.Personal loans if not utilized and repaid properly, can become a curse in disguise. Make your decisions prudently to ensure a

safe financial future



FEATURES OF PERSONAL LOANFEATURES OF PERSONAL LOAN Loans for salaried & self Loans for salaried & self--employed individualsemployed individuals

Special loans for doctors, chartered accountants, engineers, architects,Special loans for doctors, chartered accountants, engineers, architects,company secretaries, and ICW AI graduatescompany secretaries, and ICW AI graduates

Loans are available from Rs. 20000 to Rs. 20 lakh for any purposeLoans are available from Rs. 20000 to Rs. 20 lakh for any purposedepending on your requirement depending on your requirement

Flexible repayment options, ranging from 12 to 60 monthsFlexible repayment options, ranging from 12 to 60 months

HassleHassle--free loansfree loans -- No security/guarantor/collateral requiredNo security/guarantor/collateral required

Repay with easy EMIRepay with easy EMI

Balance transfer facility to retire any higher cost debt Balance transfer facility to retire any higher cost debt

Loans available against repayment track record of any existing auto,Loans available against repayment track record of any existing auto,personal or home loanpersonal or home loan

Loans available against proof of life insurance policy premium receiptsLoans available against proof of life insurance policy premium receipts

Simple procedure, minimal documentation, & quick approvalSimple procedure, minimal documentation, & quick approval



ADVANTAGES OF PERSONAL LOAN ADVANTAGES OF PERSONAL LOAN

The main advantage is the flexibility of using theThe main advantage is the flexibility of using themoney for whatever purpose you intend.money for whatever purpose you intend.

Secondly personal loans are usually unsecuredSecondly personal loans are usually unsecured

which means you dont have to offer security orwhich means you dont have to offer security orobtain a guarantor.obtain a guarantor.

Finally there is less paperwork involved since theFinally there is less paperwork involved since the

bank doesnt have to verify assets used tobank doesnt have to verify assets used tosecure the loan which also means that thesesecure the loan which also means that theseloans are approved more quickly.loans are approved more quickly.



DISADVANTAGES OF A PERSONALDISADVANTAGES OF A PERSONALLOANLOAN

The disadvantage is that these loans areThe disadvantage is that these loans arerelatively difficult to obtainrelatively difficult to obtain

The qualifying criteria are stricter than forThe qualifying criteria are stricter than forother loans.other loans.

The rate of interest is also higher than forThe rate of interest is also higher than formost other loans and may be as high asmost other loans and may be as high as25 per cent particularly if your credit 25 per cent particularly if your credit profile is weak.profile is weak.

Keep this in mind while obtaining one from anyof the lendin a encies.



HOW TO APPLY FOR A PERSONAL LOAN

So, here goes a step-by-step break-up of the persona

loan application process:

Step 1: Enquiry with a financier:

Step 2: Documents Collection

Step 3: Field Investigation Agency RepresentativeVisit

Step 4: Loan approved



Can I pre-pay my personal loan?

1) Yes, you can pre-pay your personal loan, but you will have to paya pre-payment penalty.

2) Pre-payment penalties on personal loans are generally quitesteep, with some banks charging as much as 5%.

3)Some banks allow you to pre-pay a portion of your loanoutstanding (usually 25%) without any pre-payment penalties.

Read your loan agreement carefully about the pre-payment conditions.

4)Banks allow pre-payment only after a specific period from the dateof loan disbursal, which could be 6 months to 12 months.



Think before you sign on thedotted line...

Things to keep in mind before you sign as a guarantor forsomeone's loan

Is the person worthy of your trust? Is he or she capable of

repaying the loan? These questions should cross your mindbefore you become a guarantor to someone's home, car,

education or personal loan.

So before you sign on the dotted line, take a

note of all this.



A project by A project by

D.K.H ARISH(M0871)D.K.H ARISH(M0871)

M.PRABHU(M0840)M.PRABHU(M0840)

K.SARAVANAN(M0882)K.SARAVANAN(M0882)

R.SUDH ARSAN(M0872)R.SUDH ARSAN(M0872)

K.R.VENKATESH K.R.VENKATESH

(M0861)(M0861)

RAMAKRISH

NAMISSION VIVEKANANDACOLLEGE

(EVENING)

Basics of a Personal Loan

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