Personal Loan at Multiple Banks & NBFCs
- Loan Amount Upto ₹50 Lakh
- Interest Rate @10.49% p.a
- Minimum Cibil Score > 700
- Loan Tenure Upto 7 years
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What is Personal Loan?
A Personal Loan is an unsecured loan that may be short term or long term, given by a bank or non-banking finance company (NBFC) to meet their customers’ personal expenses. An individual can obtain a personal loan based on his income, credit score, repaying capacity, etc.
Usually, personal loans are disbursed within a few days once the individual applies after going through some background verification processes. One of the most striking features of personal loans is their flexibility. From emergency medical situations to planned events like wedding expenses or home repairs there are many personal loan options available.
Personal loans can also be useful when you want to invest in a business venture or make a down payment for an asset you want to buy. You can make use of our Loan calculator to derive an exact figure for which you will repay. Using a Loan calculator will help you draft better financial plans. Unlike a home loan or gold loan, you need not offer any assets as collateral for a personal loan. Since there is no security obtained from the customer end, the interest rates for personal loans are normally high.
- Rs.50 lakh Personal Loan
- Rs.40 lakh Personal Loan
- Rs.30 lakh Personal Loan
- Rs.25 lakh Personal Loan
- Rs.20 lakh Personal Loan
- Rs.15 lakh Personal Loan
- Rs.10 lakh Personal Loan
- Rs.5 lakh Personal Loan
- Rs.4 lakh Personal Loan
- Rs.3 lakh Personal Loan
- Rs.2 lakh Personal Loan
- Rs.1 lakh Personal Loan
- Rs.50,000 Personal Loan
- Personal loan for salaried
- Personal loan for self-employed
- PL for IT Professionals
- Personal Loan for CA
- Personal Loan For Marriage
- Personal Loan For Women
- Personal Loan for Doctors
- Personal Loan for Pensioners
- PL for Defence Personnel
- Personal Loan for Low Salary
- PL for Home Renovation
- PL for Medical Emergency
- Personal Loan for NRI
- Personal Loan for CA
Types of Personal Loans
Certainly! There are several types of personal loans, each designed to meet different financial needs. Here are some common types of personal loans.
Unsecured Personal Loans
These loans do not require collateral, meaning you don't need to provide any assets (like a house or car) as security. Lenders assess your creditworthiness based on factors like credit score, income, and employment history.
Secured Personal Loans
Unlike unsecured loans, secured loans require collateral. This could be your home, car, savings account, or other valuable assets. If you fail to repay, the lender can take possession of the collateral.
Fixed-Rate Personal Loans
With a fixed-rate loan, the interest rate remains constant throughout the entire loan term. This provides predictability in monthly payments.
Variable-Rate Personal Loans
Variable-rate loans have interest rates that can fluctuate over time, often in response to changes in a benchmark interest rate. This means your monthly payments can change.
Debt Consolidation Loans
These loans are specifically used to combine multiple debts into a single loan. This can simplify payments and, if the interest rate is lower, potentially save money.
Home Improvement Loans
These loans are tailored for financing home improvement projects. They may be secured (using your home as collateral) or unsecured, depending on the lender's terms
Medical Loans
Designed to cover medical expenses not covered by insurance, these loans can help individuals manage unexpected healthcare costs.
Student Loans
While most student loans are specific to education expenses, some personal loans can be used to cover costs not met by traditional student loans.
Wedding Loans
Intended for covering wedding expenses, these loans provide a way to finance your special day.
Travel Loans
Travel loans are used to fund vacations or travel experiences. They allow you to spread the cost of a trip over time.
Emergency Loans
These loans provide quick access to funds for unforeseen expenses or emergencies, offering a financial safety net.
Business Loans for Individuals
Some lenders offer personal loans for individuals looking to start or expand their own businesses.
However, there are signs that rates might stabilize or even decrease in 2024. Some economists predict the federal funds rate, which influences personal loan rates, could fall within a range of 4.4% to 6.1% by the end of the year.
Personal Loan Eligibility for Salaried vs Self-Employed
Personal loans are provided mainly to individuals and not to business entities. It can be taken by both salaried and non-salaried individuals. However, the eligibility differs in each case.
| Criteria | Salaried Individuals | Self-Employed Individuals |
|---|---|---|
| Age | 21 to 65 years (may vary slightly by lender) | 24 to 80 years (may vary slightly by lender) |
| Nationality | Resident Indian | Resident Indian |
| Minimum Income | Varies by lender (typically ₹20,000 per month or more) | Varies by lender (may require proof of sufficient income to support loan repayment) |
| Employment Status | Minimum 1 year of experience, with at least 1 year in current organization | Minimum 3 years of business experience, with overall 5+ years of business experience preferred |
| Credit Score | Minimum score of 750 or higher (may vary by lender) | Minimum score of 685 or higher (may vary by lender) |
| Additional Documents | Salary slips, employment certificate, bank statements | Business registration documents, income tax returns, bank statements |
Pros and Cons of Taking a Personal Loan
Personal Loan Repayment Options
Fixed Equated Monthly Installments (EMIs): This is the most common repayment option, where you pay a fixed amount every month throughout the loan term. The EMI covers both principal and interest.
Part-Prepayment: You can make additional payments towards the loan principal beyond your regular EMI, reducing the outstanding balance and potentially saving on interest costs.
Foreclosure: Some lenders allow full repayment of the loan before the scheduled end date, typically subject to prepayment charges.
Automatic Debit: Set up automatic debits from your bank account to ensure timely payments and avoid late fees.
Remember: Always check with your lender for specific repayment options and any associated fees or charges.
Documentation Required for Personal Loan
| Category | Salaried Individuals | Self-Employed Individuals |
|---|---|---|
| Identity Proof | * PAN Card * Aadhaar Card * Voter ID Card * Driving License * Passport | * PAN Card * Aadhaar Card * Voter ID Card * Driving License * Passport |
| Address Proof | * Aadhaar Card * Passport * Driving License * Utility Bill (not older than 3 months) | * Aadhaar Card * Passport * Driving License * Utility Bill (not older than 3 months) * Ration Card |
| Income Proof | * Latest 3 months’ salary slips * Bank statements of salary account for the last 3 months * Form 16 (if available) | * Latest Income Tax Returns (ITR) * Audited financial statements for the past 2 years * Bank statements for the last 6 months (savings and current accounts) |
| Employment Proof | * Appointment letter * Latest salary certificate | * Business registration documents (if applicable) * GST registration certificate (if applicable) * Shop & establishment act certificate (if applicable) |
| Additional Documents | * 2 Passport-sized photographs * Application form duly filled | * Office address proof (if applicable) * Proof of business continuity (if applicable) |
Personal Loan Application Process
To apply for a personal loan online at Fincover, follow these steps,
- Visit www.Fincover.com
- Hover on “Loans” and Click on “Personal Loans”-> “Apply for Personal loan”
- Select the type of profession, Enter your Net Monthly Salary, Select the Loan amount required, Select the type of residence
- Enter your Personal details such as Name, mail ID, Pincode, PAN, and state
- Confirm your registration with an OTP
- A lead will be created, and the customer care agents will contact you to seek documents and find offers from suitable banks or NBFCs. after which your loan will be processed.
Top Reasons for Personal Loan Rejection
- Low credit score: Lenders rely heavily on credit score to assess your creditworthiness. A low score indicates a higher risk of default.
- Insufficient income: Not meeting the lender’s minimum income requirements hinders your ability to repay the loan.
- High debt-to-income ratio: Existing debt obligations can limit your capacity to handle additional loan repayments.
- Unstable employment history: Frequent job changes or short employment tenure raise concerns about your income stability.
- Incomplete or inaccurate application: Ensure all information provided is accurate and complete to avoid delays or rejection.
- Multiple loan applications: Applying for several loans simultaneously can negatively impact your credit score and raise red flags for lenders.
Tips to Improve Your Chances of Approval
- Build and maintain a good credit score: Make timely payments on existing debts, avoid exceeding credit card limits, and consider credit-building strategies.
- Increase your income: Explore ways to increase your income, such as seeking a raise or taking on additional work.
- Reduce debt: Pay down existing debts to lower your debt-to-income ratio and improve your financial standing.
- Maintain stable employment: Aim for consistent employment with a reputable organization.
- Submit a complete and accurate application: Double-check all information and provide necessary documentation promptly.
Potential Risks and Precautions of personal loan
Potential Risks:
High-Interest Rates
Personal loans, especially unsecured ones, may come with higher interest rates compared to other types of loans. This can lead to increased overall borrowing costs.
Impact on Credit Score:
Failing to make timely payments or defaulting on a personal loan can negatively impact your credit score, making it harder to qualify for future credit.
Debt Accumulation:
Taking on multiple loans or borrowing more than you can comfortably repay can lead to a cycle of debt accumulation, potentially causing financial stress.
Penalties and Fees:
Late payments or breaches of loan terms can result in additional penalties and fees, adding to the overall cost of the loan.
Predatory Lending Practices:
Some lenders may engage in unethical practices, such as hidden fees or excessively high interest rates. It’s crucial to carefully review loan terms and choose reputable lenders.
Precautions:
Compare Offers:
Shop around and compare loan offers from different lenders. Look for the most favorable interest rates, terms, and conditions.
Read and Understand Terms and Conditions:
Thoroughly review the loan agreement. Understand the interest rates, fees, repayment schedule, and any penalties for late payments or defaults.
Budget for Repayments:
Calculate how the loan repayments fit into your monthly budget. Ensure you have sufficient income to cover these payments without compromising essential expenses.
Avoid Borrowing More Than Necessary:
Only borrow the amount you need for a specific purpose. Avoid taking on additional debt that isn’t essential.
Maintain Good Credit Habits:
Pay bills on time, manage existing debts responsibly, and monitor your credit report for accuracy. A good credit score can lead to better loan terms.
Responsible Borrowing Practices
Here are some key principles of responsible borrowing
Borrow Only What You Need
Take out a loan for a specific purpose and borrow only the amount required to meet that need. Avoid taking on unnecessary debt.
Avoid Multiple Simultaneous Loans
Taking on multiple loans at once can lead to financial strain. Consider whether you can comfortably manage the repayments before taking on additional debt.
Regularly Review Your Financial Situation
Periodically assess your financial standing and adjust your borrowing habits accordingly. This helps ensure that you're on track towards achieving your financial goals.
Charges & Fees related to Personal Loans
| Charge/Fee | Description | Example |
|---|---|---|
| Origination Fee | A one-time fee charged by the lender for processing and underwriting your loan application. | 1% – 6% of the loan amount |
| Processing Fee | A separate fee for covering administrative costs associated with processing your loan application. | Flat fee of ₹1,000 – ₹5,000 |
| Prepayment Penalty | A fee charged if you pay off your loan early. | 1% – 4% of the remaining loan amount |
| Late Payment Fee | A penalty charged for late or missed loan payments. | 1% – 5% of the missed payment amount |
| Early Access Fee | A fee charged if you access your loan funds before the scheduled disbursement date. | 1% – 2% of the early accessed amount |
| Excess Withdrawal Fee | A fee charged if you withdraw more than the permitted amount from your loan account. | Flat fee of ₹250 – ₹500 per excess withdrawal |
| Account Maintenance Fee | An annual or monthly fee for maintaining your loan account. | Flat fee of ₹100 – ₹500 per year or month |
| Bounce Charge | A fee charged if your loan repayment cheque bounces | Flat fee of ₹250 – ₹500 per bounced cheque |
| Legal Fees | Fees incurred if the lender needs to take legal action to recover the outstanding loan amount. | Variable depending on the legal proceedings |
Comparing Personal Loans vs. home Loans, vs. Credit Cards
| Feature | Personal Loan | Home Loan | Credit Card |
|---|---|---|---|
| Purpose | Various personal needs (consolidation, emergencies, major purchases) | Purchase or refinance a home | Ongoing purchases and expenses |
| Amount | Typically smaller amounts (₹1 lakh – ₹25 lakh) | Larger amounts (₹50 lakh – ₹5 crore+) | Limits set by issuer (typically ₹50,000 – ₹5 lakh+) |
| Interest Rate | Generally higher (10% – 24%) | Generally lower (6% – 9%) | Very high (15% – 40%) |
| Term | Shorter terms (1 – 5 years) | Longer terms (15 – 30 years) | Revolving credit (no fixed term) |
| Collateral | Usually unsecured (no collateral required) | Secured by your home | Unsecured |
| Application Process | Relatively simpler and faster | More complex and lengthy | Instant approval for existing cardholders |
| Approval Criteria | Credit score, income, employment stability | Credit score, income, debt-to-income ratio, property value | Credit score, spending history |
| Fees | Processing fees, origination fees, late payment fees | Processing fees, prepayment fees, legal fees | Annual fees, late payment fees, cash advance fees |
| Early Repayment | May allow part-prepayment or foreclosure (subject to fees) | May allow prepayment (subject to fees) | Minimum payment due each month |
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Our
Happy Customers Reviews
Name: Rakesh Kumar
Occupation: Software Engineer
Location: Bangalore, India
Financial Need:
Rakesh Kumar, a talented software engineer, aimed to pursue higher studies abroad to enhance his skillset. The program required a substantial investment of INR 15 lakhs for tuition fees and living expenses. Having planned diligently, Rakesh was short of this amount.
Solution – Fincover Personal Loan:
Rakesh approached Fincover for financial assistance. After a detailed assessment of his creditworthiness, income stability, and repayment capability, he was offered a tailored personal loan solution.
Loan Details:
- Loan Amount: INR 15 lakhs
- Interest Rate: 11% per annum
- Loan Tenure: 5 years
Results:
With the support of Fincover’s personal loan:
- Rakesh successfully funded his education abroad.
- He completed the program and returned with advanced skills.
- Leveraging his newfound expertise, Rakesh secured a high-paying job in a multinational company.
- He managed his loan repayments seamlessly, building a strong credit history in the process.
Testimonial from Rakesh Kumar:
“Fincover was the financial backbone I needed to realize my aspirations. Their personalized loan helped me accomplish my dream of studying abroad. I’m grateful for their support, which ultimately paved the way for my career growth.”
Name: Priya Sharma
Profession: Marketing Manager
Location: Mumbai, India
Financial Requirement:
Priya Sharma, a dedicated marketing manager, aimed to renovate her home to accommodate her growing family. The estimated cost for the renovation project was INR 8 lakhs, which included refurbishing the kitchen, expanding a bedroom, and enhancing the living space.
Fincover Personal Loan Solution:
Facing a shortfall in funds for the renovation project, Priya turned to Fincover for financial assistance. After a thorough evaluation of her financial stability and creditworthiness, Fincover offered her a tailored personal loan to meet her requirements.
Loan Details:
- Loan Amount: INR 8 lakhs
- Interest Rate: 10.5% per annum
- Loan Tenure: 4 years
Outcomes:
With the support of Fincover’s personal loan:
- Priya successfully renovated her home, creating a comfortable and spacious environment for her family.
- The loan process was smooth and efficient, enabling her to manage the expenses without stress.
- Priya repaid the loan in regular instalments, improving her credit history and financial credibility.
Priya Sharma’s Testimonial:
“Fincover truly understood my needs and provided the financial support required for my home renovation. Their personalized loan solution made the process hassle-free, and I’m delighted with the results. Thank you, Fincover, for helping me turn my house into a dream home!”