personal loans
Content
T.Y.BBI
PERSONAL LOAN
INTRODUCTION
A loan is a redistribution of financial assets over a time between t e lender and t e !iver of t e loan. T e borrower initiall" receives an amount of mone" from t e lender# w ic t e" $a" bac% usuall" but not alwa"s in re!ular installments to t e lender. T is service is !enerall" $rovided at a cost# discounted as interest on t e debt# to t e lender. Actin! as a $rinci$al of loans is one of t e $rinci$al tas% for financial institution for ban%s. Loans are !enerall" funded b" de$osits for ot er institution issuin! of debt contract# suc as bonds is a t"$ical form of fundin!.
&ue to risin! of basic needs# $ersonal loan facilitated b" various ban% $la" a vital role in fulfillin! t e $eo$le desire of bu"in! t eir dreams. T e" are ideal w en we need or bu" a $roduct for ideal w en do not ave read" cas . Personal loan are better c oice com$ared wit consumer durable loans. In fact before we consider ta%in! a consumer durable loan we mi! t consider a $ersonal loan instead as t e $rocedure is sli! tl" lon!er but t e rate of interest is lower. 'le(ibilit" of duration and
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availabilit" of various sc emes ma%e $ersonal loan an attractive o$tion. It is an all $ur$ose a loan# w ic is !iven in most cases wit out an" %ind of securit" li%e a car# ome# s ares or an" %ind of $ro$ert". *ost nationali+ed# forei!n# and co,o$erative ban%s offer $ersonal loan. Besides ban%s# some ot er finance com$anies and financial institution also offer t em. Lendin! rates differ for different financiers and currentl" from )-. to /0.. T ese loans are available in t e ran!e of Rs )1000 to Rs )0 la% s. T e re$a"ment $eriod varies widel"2 some lenders usuall" $ermit re$a"ment u$ to a ma(imum of 30 mont s. And most lenders restrict t e lendin! to a ma(imum $eriod of /3 mont s. *ost ban% will !ive an"w ere between Rs-0# 000 and Rs)0 la% s 4Rs ) million5 for a ma(imum for $eriod of 30 mont s. To be eli!ible for t e loan "ou need to be between t e a!e of -1"ears and 16"ears in case of a salaried individual or between -1 "ears and 31"ears if "ou are self,em$lo"ed. 7 ile issuin! t e loans# ban%s loo% at factors li%e "our salar" or $rofit# t e number of "ears "ou residence. ave wor%ed in a $articular or!ani+ation and t e number of "ears "ou ave sta"ed in "our current
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Advantages and disadvantages of personal loan
7it a lot man" lenders on t e bloc% willin! to offer t eir loan services to all# a$$l"in! for a loan nowada"s# is no lon!er a $roblem. 8one are t e da"s w en "ou ad to wait to bu" somet in! or !o out and do w at "ou wanted to# because a assle free and available to all $ersonal loan is now no more a dream# but a realit". Toda"# various loans are available in t e mar%et to suit individual needs of t e $eo$le. In Personal Loans as well# different t"$es of loans are available. T e" can serve "ou well in "our financial limitations w ile ma%in! "our livin! better. No dela" s ould be done in availin! a loan es$eciall" w en it suits "our financial situation and can be available to "ou in a desired time. A $ersonal loan is often described as unsecured loans because it allows "ou to borrow mone" wit out avin! to $rovide securit" a!ainst it. You can use t e $ersonal loans for t e $urc ase of "our ouse or a car. T e $ersonal loans are better for a lon!er time $eriod.
Following are some of the advantages of the personal loans,
7 ile ma%in! an evaluation of t e cost of t e loan "ou need to
consider t e TAR 4Total Amount Re$a"able5 w ic means t at t e
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total amount t at "ou owe towards t e ban% or a lender w ic also includes t e rate of interest on t e loan and t e $a"ments need to be made on a mont l" basis. A suitable deal is w ere "ou !et a lower TAR. , T e ma(imum amount t at "ou can borrow ran!es u$ to 9-1#000 and t e time $eriod for t e refund is u$ to ten "ears. T e advanta!e wit t e $ersonal loan is t at w en "ou ta%e a ma(imum amount as a loan t en "ou ave to $a" a lower rate of interest. It is totall" different from t e terms and conditions for t e mort!a!e. T e unsecured $ersonal loans are not $rotected for "our $ro$ert" so if "ou are not able to refund t e loan t en "ou can be rest assured t at "our ouse is safe. , T e interest rates for t e $ersonal loans are also fi(ed. T is ma%es it eas" for "ou to ma%e a $lannin! for t e $a"ments t at as to be made. T e refundin! amount also remains sta!nant all t e wa" t rou! t e time $eriod of t e loan. , 7it a d"namic mar%et scenario of loans t e rate of interest as seen so man" u$s and downs. Now to !et a loan it as become sim$ler t an ever before. T e financial com$anies offer "ou loans t rou! t eir tele$ one service. T e" ave toll,free numbers and t e" !uide and $rovide "ou t e best deals and offers. Following are some of the disadvantages of the personal loans: - :arious financial com$anies and clever lenders introduce certain $lans li%e, ma%e a $urc ase and $a" it later# offer free !ift items# etc. T ese will onl" raise "our $rice of t e loan. So ta%e a wiser decision and !o for t e basic loan wit favorable terms and conditions.
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Alwa"s ma%e a c oice for t ose loans w ic
ave a low rate of
interest and w ere t e terms of t e refund are moderate. , &on<t ma%e a ast" decision in c oosin! a $ersonal loan. It is not ri! t to ta%e a loan from =ust anot er ban%. *a%e a surve" and tr" to find out various offers and $lans t at various ot er ban%s and financial com$anies ave to offer. Now wit t e internet t in!s as become ver" sim$ler. You can visit various financial com$anies# w at are t e offers and $lans t ese com$anies are offerin!. Accordin!l" "ou can ta%e a decision w ic ever $lan suits "ou. , T e PPI 4Pa"ment Protection Insurance5 $rovides "ou t e refund on a mont l" basis if "ou are not able to wor%# "ou ave met wit an accident# in case "ou ave suffered a eav" loss in "our business# "ou are not em$lo"ed an"w ere# and ma%e a $a"ment for "our loan in case of "our deat . You s ould be aware of t is t"$e of insurance as it is a costl" affair and it adds an amount ran!in! from 9)#000 to 91#000. , Accordin! to a surve" ma=orit" of t e $ersonal loans are $aid off before t e com$letion of t eir tenure. You need to loo% out for t ose lenders w o ta%e eav" amount for t e settlin! of "our loans before t e tenure. - You ave to andle t e annual $ercenta!e rates ver" carefull" as it entirel" de$ends on "our financial credibilit". You $robabl" mi! t not be eli!ible as to be entitled for it. You need to ave a !ood credit istor" ot erwise "ou won<t be able to >ualif" for t e lender<s $otential customer list.
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Here are few g idelines !efore ta"ing an# $on$rete de$ision regarding the personal loans: , Anal"+e all t e offers and sc emes before a$$l"in! for t e loan. T ere are various lenders w o are not real and t eir motive is =ust to earn $rofits. , To be entitled for a $ersonal loan t e $rocedure followed is ri!orous alt ou! t ere is less documentation involved in it. , 8o t rou! t e contract t orou! l" and reassess t e closure $rice and for an" idden cost 4If an"5. It is an im$ortant ste$ w ic will onl" benefit "ou. , If "ou are $lannin! for a $ersonal loan t en most of t e time it is c ea$er t an !ettin! a credit card. - E(cludin! t e consumer durable loans t e rate of interest for t e $ersonal loans are i! .
Personal loans - Special emphasis on bad credit personal loans
Before approving a loan application, the lender calculates the following two affordability parameters to make sure that the chances of repayment are not bleak:
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Credit history, to ascertain the loan seeker's past financial record as good or average or bad. Debt to income ratio (D ! " Debts#!ncome$, to compute the loan seeker's current monetary position.
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Depending on the above%mentioned calculations, the lender categori&es the loan seeker as: prime customer (person with a good credit record$, near prime customer (person with an average credit record$ or sub%prime customer (person with a poor or bad or adverse credit record$. ' sub%prime client is further categori&ed to get a better idea of the ha&ards that he may pose % low adverse credit, medium adverse credit or heavy adverse credit. 'fter this detailed evaluation and classification, the lender and approves decides the the loan loan application#amount terms#conditions. (ub%prime loan seekers can avail credit support under the 'bad credit personal loans' category. 'vailable in both secured and unsecured form, this special personal loan sub%category helps people bring their lives back on track.
)or obvious reasons, prime and even near%prime customers can negotiate for a favorable loan deal. But, sub%prime customers have to settle for high '*+s, and stringent loan terms and conditions. (till, secured loans are more gainful and are generally easier to get as compared to unsecured loans.
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T.Y.BBI
PERSONAL LOAN
Secured
bad
credit
personal
loans,
the
best
solution for homeowners and property owners are comparatively safer for the lenders, as they are availed by pledging collateral. 's a result, there are chances that the loan seeker may get a less stringent loan deal. But, unsecured bad credit personal loans, probably the only option for those ,- residents who are incapable of offering collateral, are risky for the lenders, as they are availed without pledging collateral. 's a result, the creditor cannot afford to offer a fle.ible loan deal.
How to ensure a safe personal loan?
he online media for applying for loans is becoming increasingly popular these days. Being time saving and convenient, it's preferred by most of the borrowers. /obody likes visiting the bank manager in persona to apply for a loan. But, one must ensure that s#he is applying to the right lender and not to a loan shark. 0oan sharks are unlicensed lenders who take advantage of those who are re1ected elsewhere or are
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PERSONAL LOAN
suffering from e.treme bad credit. lone parents, bad credit holders, etc.
hese lenders
usually prey on vulnerable people like the unemployed, (o, whenever you apply for personal loans, make sure that the online by they lender you are dealing with is registered with 2) regulated therefore )!(' 0oan association$. (2ffice of )air ()inance sharks are not the rading$ and (tandard and hese licensed law.
!ndustry
operate
outside
unlicensed moneylenders charge very high interest rates and use violence and threat if the borrower is unable to repay the loan. *ersonal loans should be taken with great care and caution. he loan agreement should be read carefully before signing and if needed, professional help from a financial consultant should be taken. 'n unlicensed lender otherwise may make you life hell. 3e does the following:
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4rant you personal loans on very e.pensive rates 3arasses you if you fall behind your repayments *ressuri&es you to borrow more from them to repay your e.isting debts
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Personal cash loan
!t can be a viable short-term solution for temporary monetary problems because these allow consumers to receive funding for bills, expenses, and other necessary costs. When handled
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wisely, they can improve an individual’s current financial situation. When not handled wisely, however, a personal cash loan can lead to serious trouble. If help is needed, funding can be qualified for quickly, with little documentation. owever, because of higher interest rates and serious default terms, one should cautiously consider taking out this form of funding. !here are many different funding programs, including payday advances, cash advances or other unsecured cash loans. !hey are available through store-front and financial companies, as well as on the Internet. While there really are no regulations for which a personal cash loan can be used, people typically use them to help pay bills on time, or to pay for some unforeseen expense that they do not have adequate savings to cover. "nfortunately, some people may also use personal cash loans to meet their perceived need for instant gratification. "sing money in this manner can get a person into financial trouble quickly. #ecause these programs can have high interest rates and little tolerance for missed payments, they are best used in emergency situations, or when the borrower knows they can repay the obligation. $etting a personal cash loan can be quick and easy, which is good for the person who is in financial need. %enders who offer personal cash loans do not have many requirements. &ost lenders require the borrower to be at least '( years old and to have had a checking account open and in use for at least )* days. !he borrower also must show documentation that proves they receive a minimum of +'*** per month to qualify. &ost lenders typically do not require good credit and rarely run
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credit checks for instant loans. bankruptcies.
owever, lending companies
may check for other outstanding debts or in-process !his funding can be a blessing or a curse to the one who is borrowing. When a person takes on a personal cash loan, it is important to reali,e they are in debt to the lender. -s the #ible says, .borrower is servant to the lender. /0roverbs 11234. !his can be very overwhelming and should encourage the individual to seek financial freedom. owever, unforeseen financial difficulties sometimes arise and people need personal cash loans to pay these obligations. It is important to be very selective in this process and choose lenders that offer the lowest rates and best terms.
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Personal loan guaranteed
0ersonal loan guaranteed are available from many sources, and are relatively easy to obtain either through the Internet, finance company, bank, or even a credit card company for anyone with collateral. !he quickest /and apparently most common4 financing is payday loans. !hey are secured by the next paycheck, and allow the borrower to receive funds between paydays. !hey do not require a credit check when they are short term and +5** or less. !here is a fee for this type of financing that is taken out up front, so actual funds received from a personal loan guaranteed are the amount less the fee. When larger amounts are needed, such as to buy a computer, or furniture, or to pay tuition or vacation expenses, a credit check will most certainly be done. In that case, in order to avoid having several companies check credit /and thus lowering personal credit rating4, it would be wiser to use a broker who would make a one-time check and pass that information on to possible lenders. - bank statement and paycheck stub will be needed to prove earnings enough to qualify for this personal loan guaranteed. !ypical fees for personal loans guaranteed are '5-6*7 of the amount borrowed. When one has to begin borrowing on future paychecks or on the home, it may a good time to review financial priorities. It is important to keep money in its proper place2 .8or the love of money is the root of all evil2 which while some coveted after,
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they have erred from the faith, and pierced themselves through with many sorrows.. /' !imothy 92'*4. :emember that $od promises each person who believes in concentrate on the best that is yet to come. -nother source is the home equity line of credit. !he larger personal loans guaranteed by the equity in the home are good for debt consolidation, home remodeling and the like. !he interest rate is lower than the payday loans. !his kind of financing equates to a second mortgage, and if selling a home before it<s paid off, that personal loan guaranteed comes out of the sale proceeds first. When counting on the proceeds of a house to make a down payment on the next one, this could present a serious problem. !he best way to handle this kind of personal loan guaranteed is to stay put until both the loan and mortgage are paid off. im treasures unimaginable in heaven. ;on<t store up treasures here,
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There are !asi$all# Two T#pes of %ersonal &oans:)5 Secured loan -5 Ansecured loan )5 Secured loan a5 T e loan t at is secured a!ainst some sort of fi(ed or immovableBmovable asset is %nown as secured loan. b5 T is sort of !uaranteed $ersonal loans is easil" available on account of t e collateral t at is $rovided alon!side2 t ereb" ma%in! t e lendin! institutions more comfortable in forwardin! t e loan. c5 Secured $ersonal loans involve rates of interest t at are muc lower and eas" o$tions for re$a"ment. d5 &ue to t e collateral t at is $rovided# ban%s and financial institutions usuall" are un$erturbed b" defaults in $a"ments or b" debts t at are $endin!. e5 Secured $ersonal loans are made available to t e individual wit in a $eriod of t irt" da"s after submittin! an a$$lication.
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How Does A 'e$ red %ersonal &oan (enefit the (orrower And the &ender) ). Secured Personal Loans can be re$aid over a lon!er $eriod of time# wit a lower mont l" $a"ment. -. T e" are cost effective on account of t e low rates of interest c ar!ed on t e loan. /. Since t e loan as been secured b" $led!in! t e assets of t e borrower# t e ris% to t e lenderCs investment is !reatl" reduced. ;. T eir eas" availabilit" is anot er factor. :er" few loan a$$lications for secured loans are turned down2 since t e loan would be secured on t e stren!t of t e borrowerCs assets Secured $ersonal loans can onl" be obtained b" a borrower after %ee$in! an asset suc as real estate $ro$ert"# car or =ewelr" as collateral wit t e lender. T ese %inds of loans el$ t e lenders ma%e sure t at t e" will !et t eir mone" bac%# and ence t e" a$$rove and $rovide t e loans for an" amount of mone" wit more securit". Ot er t an t at# t e a$$roval of t e loan a$$lication also de$ends a lot on t e borrower<s credit istor"# is current monetar" $osition# is current em$lo"ment status and t e obtainable e>uit" in t e de$osited collateral.
*+ Unse$ red loan
An unsecured $ersonal loan allows "ou to borrow mone" wit out avin! to $rovide securit" a!ainst it# suc as "our ome or car. T is is w at ma%es a secured $ersonal loan different from unsecured $ersonal loan. T e $eo$le w o don<t own t eir own
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ouse and
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students w o are livin! awa" from t eir ome are t e most suitable borrowers of unsecured $ersonal loans. If "ou don<t ave enou! financial resources to re$a" t e loan and t ose w o don<t want to $ut t eir costl" items in =eo$ard"# t en t e unsecured $ersonal loans are t e best o$tion for "ou. You ave t e dan!er of !ettin! "our $ro$ert" sei+ed in secured loans and unsecured $ersonal loans are total contradictor" to it w ic offers less bot eration to t e borrowers. Asuall" t e borrowers are attracted towards t ose offers w ere "ou are assle,free. T ese all factors are t e ma=or contributors to t e $o$ularit" of t e unsecured $ersonal loans. An individual can ta%e a $ersonal loan for a variet" of reasons. Loans for $ersonal debt el$ $rovide funds to $urc ase "our dream car# $a" for "our mort!a!e or ome im$rovement re>uirements. In fact unsecured $ersonal loans el$ meet most of t e financial emer!encies t at an individual can t in% of. T e main advanta!e of t e unsecured $ersonal loan is t at an"bod" is entitled for an unsecured $ersonal loan w et er wit a !ood credit or a $oor credit. 8enerall" it as been witnessed t at a borrower wit a $oor credit is not !iven t e unsecured $ersonal loans easil" b" t e lenders. But t ere are some lenders w o still $rovide unsecured $ersonal loans to t e $eo$le wit $oor credit. T ere are $eo$le w o ave t e $rivile!e of unsecured $ersonal loans after bein! a ban%ru$t or after t eir $ro$ert" bein! ta%en over.
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T e rate of interest is i! er for t e unsecured $ersonal loans as com$ared to t e secured $ersonal loans. In t e case of unsecured $ersonal loans t e lender is at a ris% because incase "ou are not able to ma%e a re$a" of t e loan t en t e lender as not in! to ta%e t e $ossession of as t ere is not collateral made a!ainst t e loan. T e unsecured credit line and unsecured credit cars are also forms of unsecured $ersonal loans. T e unsecured credit cars are offered to t ose borrowers t ose w o are financial stable and ave a !ood financial bac%!round. 'or unsecured credit card "ou need not de$osit a considerable amount and on t e contrar" to t is "ou ave to ma%e a decided amount in advance in secured credit cards. T e main and t e most im$ortant factor of t e unsecured $ersonal loan is t at "ou need not de$osit an" collateral a!ainst t e loan to t e lender. T rou! unsecured credit line t e businessmen are benefited t e most as t e" are in need of cas . T e unsecured credit line is offered accordin! to one<s financial status. It is u$ to t e business man w at e wants to do wit t e credit w et er e uses to bu" some mac ines or use it to e($and is business. It is evident t at t e interest is onl" c ar!ed on t e amount "ou ave ta%en. T e rate of interest for t e unsecured loan is relativel" i! er t an t e secured loans. No doubt t at unsecured $ersonal loans are t e most $referred b" ma=orit" of t e $eo$le but t ere are some strict rules and !uidelines attac ed wit concrete decision "ou need to it. Before "ou arrive to an" ave all t e details of t e details
$ertainin! to t e unsecured $ersonal loans. It is true t at "ou don<t ave to ma%e an" collateral for t e unsecured $ersonal loans but still
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t e refunds as to made on time. Dust in case "ou fail to ma%e a refund of t e loans t ere are $robabilities t at "ou can face federal lawsuit a!ainst "ou w ic will onl" ma%e t e matter worse. Your current financial status will be affected and in a worse scenario "ou will be denied for an" form of loans in t e comin! time. 'ome important fa$ts a!o t nse$ red personal loans: , 'or unsecured $ersonal loan "ou need to ave a !ood $ast financial record. T e basic condition for offerin! an unsecured $ersonal loan is "our credibilit" to refund t e loan. , 'or !ettin! an unsecured $ersona loan "ou do not ave to de$osit an" collateral a!ainst t e loan wit t e lender. , T e loan a$$roval $rocess of t e unsecured $ersonal loans is ver" >uic% t e reason bein! less $a$erwor% is $ut into use. T ere is no a$$raisal of t e $ro$ert" involved addin! to t e fast a$$roval $rocess of t e unsecured $ersonal loans. , T e loans are a$$roved ac ievin! a tar!et of 9-1#000. , T e rate of interest of t e unsecured $ersonal loan is d"namic in nature and can differ from seven to t irt" $ercent. , T e terms and !uidelines of t e unsecured $ersonal loans are not so favorable. T e time $eriod for t e re$a"ment of t e loan can var" from si( to ten "ears. Ander t is condition t e smaller t e loan $eriod t e more "ou ave to $a" on a mont l" basis.
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The (enefits !ehind an Unse$ red %ersonal &oan
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T ere is no re>uirement of collateral# and t e borrower need not $led!e is assets to $rocure t e loan. T ere is no necessit" for documents re!ardin! t e borrowerCs ta( returns# or for financial statements. T e information on t e borrowerCs financial bac%!round need not be verified b" su$$ortin! documents. Euic% a$$rovals# and an eas" a$$lication $rocess# are ot er attractive benefits of t is loan
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Unsecured loans + unsecured personal loans - Favorites among the borrowers.
!n the last two years, the percentage of unsecured loan takers has increased considerably in the ,- loan market. /ot only the tenants, most homeowners also prefer taking loans without pledging any asset, especially the home, as security to the lender. he risk of repossession of home plays heavy on the minds of the borrowers, when they weigh different loan options. ,nsecured loans are masters in luring customers because of the features cited below:
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'vailable for a range of different amounts and repayment terms. /ot secured against any asset.
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/o restriction on the purpose of availing loan. 'mount available usually ranges from 5677 to 586,777. 0oan tenure may stretch from 9 months to 87 years. Different lenders offer different '*+s. :ost borrowers wonder that if nothing is secured, then on what basis the loan amount is calculated for unsecured personal loans. here are many factors that play a vital role in deciding the amount to be granted as unsecured loans. (ome of the parameters are listed below. Credit 3istory of the borrower% ' borrower with few arrears, defaults, and miss payments is more likely to get a greater amount than the one who has an unhealthy credit record. (o, better the credit score of the borrower, higher the amount granted as unsecured loans. Disposable income of the borrower % By disposable income, one means the appro.imate income of the borrower left per month after paying all living e.penditures, installments of other loans and credit card payments etc. 2n the basis of this, the lender decides how much amount the borrower will be able to pay as the installment of the new loan.
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Debt to income (D !$ ratio%
his determines the
affordability of the borrower. D ! is calculated by dividing the monthly income of the borrower by his e.penditures. his reveals the paying capacity of the borrower. !f the D ! ratio is more than 7.;9, the borrower will get a good amount as unsecured personal loans. Credit policies of the lender % <very lender has a different credit policy. (o, the loan amount, tenure and the '*+ charged is sub1ect to the lender's criteria. )or instance, the high street banks may not at all provide unsecured personal loans to those with bad credit history= whereas, an online lender may approve the loan. here are innumerable factors that help in determining the loan amount of unsecured loans, the ma1or ones being discussed above. he borrowers' re>uirements and say also works. !n most cases, the borrowers mention the purpose for which they are procuring unsecured loans in the loan application form. 's per the purpose, the lenders grant unsecured loans.
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'hort Term %ersonal &oans S ort Term Personal Loans can be !ot t rou! ban%s and online financial com$anies# and a wide variet" of ot er sources. 7it suc a S ort Term Personal LoanF T e rate of interest involved is usuall" i! . T is is because t e $eriod of re$a"ment is usuall" for a s ort time. Suc t"$es of s ort term $ersonal loans ave to be beneficial to bot t e borrower and t e lender# and i! rates of interest are one of t e wa"s b" w ic a ban% or a financial com$an" stands to benefit. - T is t"$e of s ort term fundin! is often utili+ed to el$
individuals w o are in need of var"in! sums of mone" for a s ort $eriod. *an" of t e lendin! com$anies usuall" $rovide for suc a loan# and also sti$ulate t e ma(imum amount of mone" t at can be borrowed under suc a circumstance. - Ban%s# w ile !ivin! t is t"$e of s ort term $ersonal loan# usuall" re>uire collateral# before disbursin! t e same. Online financial com$anies onl" re>uire a credit c ec%# but lend ver" small sums of mone". Ban%s do not offer more t an G)1# 000 or G-0# 000 dollars as well# and individuals see%in! lar!er sums of mone"# would ave to ta$ ot er sources for fundin!. - Because of t e ne!ative and $ositive as$ects of s ort term $ersonal loans# it is recommended t at t e individual does is researc t orou! l"# before e a$$lies for fundin!.
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Fast Cash Advan$e &oan Sometimes# "ou ma" be in need of a >uic% $a"da" loan# so t at "ou could meet an une($ected mone" crisis. Har re$air and ot er une($ected bills usuall" occur at inconvenient times. In case "ou do not ave t e e(tra cas to meet t ese une($ected e($enses# "ou could reall" consider a$$l"in! for a cas advance. A Fast Cash Advan$e &oan: - Is similar to a ban% loan, onl" cas advances are a lot easier to >ualif" for# and en=o" a s orter term. H ances t at "our a$$lication for a ban% loan ma" be denied are i! as ban%s ave a re>uirement of sufficient income# a collateral and !ood credit ratin!. - Ias a two wee% term. T erefore "our loan is due alon! wit "our ne(t $a"c ec%. Re>uires t at t e a$$licant must be at least )6 "ears of a!e. T e cas advance com$an" would also be c ec%in! out Bconfirmin! "our salar" and em$lo"ment. 7 ile t e com$an" is %een to el$ "ou out# it also wis es to satisf" itself t at "ou can re$a" t e loan. - Renders "ou eli!ible to receive funds u$ to a ma(imum of G)000# wit a cas advance. Some com$anies allow lar!er sums to be borrowed. - T"$icall" fast cas advance loans are due wit in t e $eriod of two wee%s. Ta%in! t e circumstances of t e borrower into consideration owever# some cas advance com$anies would e($ect t at at least alf t e loan amount will be re$aid in two
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PERSONAL LOAN
wee%s# and t e balance in a mont . Suc loans are called /0 &a" Pa"da" Loans. - But remember t at before ta%in! suc a /0 da" $a"da" loan# c oose a com$an" t at allows for lon! term loans# and do not assume t at all cas advance com$anies would !ive lon! term cas advance. 'ar better to enter into a lon! term loan a!reement# before ta%in! t e loan# ot erwise "ou would ave to $a" e(tra interest and fees for t e late $eriod. *ilitar" Personal Loans are eas" for servicemen to !et an"time. *ilitar" =obs involve !ood salaries and i! status and sometimes t ese could com$licate matters b" incurrin! e(tra e($enses.
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PERSONAL LOAN
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PERSONAL LOAN
A %,R'ONA& &OAN OF ICICI (AN-
An IHIHI Ban% $ersonal loan is t e one sto$ for all "our financial needs to fulfill an" of "our desires. You can now secure a fast and eas" $ersonal loan for an amount u$ to Rs )1la% s at attractive interest rates# wit an IHIHI Ban% $ersonal loan. 7it IHIHI Ban% $ersonal loan "ou can !et instant mone" for a wide ran!e of "our $ersonal needs li%eF, ). Renovation of "our ouse -. A olida" wit "our famil" /. Your c ild<s education ;. Bu"in! a la$to$ or a electronic e>ui$ments 1. *edical e($enses or an" ot er emer!encies. T e best $ersonal loan cant<s !et easier t an an IHIHI Ban% $ersonal loan. To secure a instant $ersonal loan all "ou need is one of t e followin!F, ). A salar" sli$ -. Your credit card statement
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T.Y.BBI
PERSONAL LOAN
/. Re$a"ment trac% of an e(istin! loan. 'or instant# at IHIHI Ban%# "our net salar" needs to be @3#000 annuall" or "ou need to ave a net after ta( of Rs 30#000 $er annum. If "ou are a salaried individual "ou s ould ave wor%ed in "our current or!ani+ation for at least ) "ear and if "ou are self,em$lo"ed t en "ou must ave been runnin! "our business for at least / "ears. You must ave also been in "our current residence for at least a "ear. T e loan is sanctioned wit in / wor%in! da"s. T e $rocessin! fee is !enerall" around -. of t e loan amount and is deducted u$ front t e disbursement amount. *ost ban% c ar!e $re,$a"ment $enalt" of between /. to 1. of t e remainin! amount. Ob=ective ). T e various $ersonal loan $rovides b" IHIHI Ban% aims at $rovides financial su$$ort from t e ban%in! and financial s"stem to t e need" $eo$le for ta%in! $ersonal loan in India. -. T e main em$ asis is t at t e need" $eo$le s ould be $rovided wit an o$$ortunit" to ta%e $ersonal loan wit affordable financial su$$ort from t e ban%in! s"stem wit terms and condition. /. To ma%e $eo$le aware to ta%e advanta!es of t e various t"$es of $ersonal loan $rovided b" various ban%. ;. To $rovide eas" finance to t e $eo$le. 'EATARES
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). Personal loan wit a $eace of mindF , IHIHI ban% $ersonal loan $rovide a free life insurance cover 4includin! total and $ermanent disabilit" due to accident or sic%ness5 to t e value of t e loan outstandin!. T e insurance cover is for outstandin! balance of t e $ersonal loan as on date of deat or total and $ermanent disabilit" due to accident or sic%ness# will be covered e(cludin! an" defaulted installment. -. A loan for ever" oneF , loans for bot s$ouse. /. Euic% and assle free loanF, >uic% $rocessin! time of -; ours wit assle free documentation. No securit" or $ersonal !uarantors re>uired. ;. 8et more from "our loanF, we offer attractive interest rate wit loan from Rs )0#000lac to Rs )#00#000 lac or to )0 times to t e net remuneration w ic ever is lower. 1. 'le(ible re$a"ment o$tionF, "ou ave fle(ibilit" to H oose t e re$a"ment $eriod of u$to 1 "ears 430 installments5 and we also allow earl" settlement at a nominal fee. 3. Loan ran!in! from Rs -0#000 to Rs )1 lac salaried and self, em$lo"ed $ersonnel wit freedom to =ointl" a$$l" wit "our
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,ligi!ilit# Terms for #o r %ersonal &oan You can avail of an IHIHI Ban% Personal Loan if "ou meet t e followin! criteriaF Criteria A!e Net Salar" 'alaried 'elf - ,mplo#ed -1 "rs. , 16 "rs. -1 "rs. , 31 "rs. Net annual Net Profit after ta( income Eli!ibilit" , Rs. , Rs. 30#000 $.a of &octors# *BACs# HACs# @3#000 $.a Em$lo"ees
Public Ltd. cos. Arc itects# *NH<s Years 8overnment. in ) Year
Private Ltd. cos. En!ineers# Traders Or J *anufacturers / Years
current =ob B $rofession Years in ) Year current residence ) Year
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PERSONAL LOAN
Do$ ments
Do$ ments . %re 'an$tion+ Latest / mont s Ban% 4w ere Yes 'alaried 'elf ,mplo#ed Yes
Statement
salar"Bincome is credited5 / Latest salar" sli$s Last "ears of ITR wit B Yes Yes
com$utation
income
Hertified 'inancials Proof of Turnover 4Latest Sales B Service ta( returns5 Proof of Hontinuit" current =ob 4'orm )3 B Hom$an" a$$ointment letter 5 Yes Yes
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PERSONAL LOAN
Proof of Hontinuit" current $rofession Hertificate 4IT of Returns B business Yes
Yes
continuit" issued b" t e ban%5 Proof of Identit" B 4an" &rivin! Yes
one5Pass$ort
License B :oters I& B PAN card B P oto Hredit Hard B Em$lo"ee I& card Proof of Residence 4an" one5 Ration Hard B Atilit" bill B LIH Polic" Recei$t Proof of Office 4an" one5 Lease deed B Atilit" bill B *unici$al Ta( recei$t B title deed Proof of Eualification Ii! est &e!ree 4for Professionals B 8ovt em$lo"ees Yes Yes Yes Yes Yes
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PERSONAL LOAN
'ervi$e Charges for #o r %ersonal &oan Enclosed find t e service c ar!es for an IHIHI Ban% Personal Loan Pre$a"ment of t e loan is $ossible after )60 da"s of availin! t e loan. 'oreclosure c ar!es as a$$licable would be levied on t e outstandin! loan. Part $re,$a"ment is not allowed. No ot er fees or commitment c ar!es are levied.
Des$ription
of %ersonal &oans
$harges Loan Processin! -K . of loan amount L H ar!es Ori!ination H ar!es Pre$a"ment H ar!es H ar!es for B Ori!ination H ar!es of ). of loan amount 1. on t e $rinci$al
outstandin! late -. $er mont
$a"ment 4loans5 H e>ue Swa$ Rs. 100B, H ar!es H e>ue bounce Rs. -00B,
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c ar!es
NoteF )5 Ori!ination H ar!es are included in t e Advance installmentsB 'irst installment.
-5 Service Ta( and ot er !ovt. ta(es# levies# etc.
Appli$ation %ro$ess
Information
A$$lication to ban%
Processin! a$$lication
&ocuments
:erification /;
T.Y.BBI
PERSONAL LOAN
Sanctionin! of loan
Loan a!reement
&isbursement of loan
Re$a"ment
-e# (enefits ). Small business loan wit no mort!a!e and no securit" re>uired -. T e loan is $rovided in t e form of overdraft# letter of credit or ban% !uarantee and "ou can borrow u$to a ma(imum of Rs. -1 lacs. /. 'aster sanction. ;. 'le(ible $a"ment sc eduled, Part $a"ment or Pre $a"ment. 1. One sto$ solution wit a bou>uet of $roducts. 'e$ rit# Personal loans are ver" fle(ible. T e" do not re>uired collateral securities or assets ban%in!. T e" are disbursed based $urel" on t e financial of t e loan a$$licant. Additionall" "our s$ouse income can be considered in calculatin! t e loan amount $rovided eBs e !uarantees t e loan or t e loan is ta%en
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=ointl". &oan Repa#ment Personal loan are re$aid in t e of E>uated mont l" installments. E*I are calculated based on t e loan amount# t e rate of interest and t e tenure of t e loan. MBan%s calculate interest usin! t e reducin! balance met od. T e actual interest is calculated on a dail" reducin! balanceN Transfera!ilit# If "our lender is c ar!in! a i! rate on "our loan and "ou are able to find anot er ban% willin! to lend at lower rate# "ou can transfer loan to t e new ban% and t ereb" reduce t e cost of "our loan.
Advantages and disadvantages of different loan programs
Loan Program Fixed-rate mortgages Advantages 0redictable monthly payments %ess risk if market conditions cause rates to rise "nable to take :ate does not change Adjustable rate mortgages 8lexibility %ower initial monthly payment =ou pay less for short term ownership 0otential higher &ay be easier to qualify for higher loan amounts Stated income mortgages ;on<t need to verify income igher rates >eed a low %!? to qualify payments /at max. interest rate4 advantage of lower interest costs if market changes to lower rates &ore risk Inability to predict future housing costs Disadvantages =ou pay more in interest igher interest rate
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Combination loans (such as an !"#!"#!$ -void 0&I 0otential tax advantages
PERSONAL LOAN
0ossibly higher monthly payments !wo monthly payments instead of one
Combination loans (such as an !"#!"#!$
-void 0&I 0otential tax advantages
0ossibly higher monthly payments !wo monthly payments instead of one
%ome e&uit' line of credit
8lexible access to funds 0otential tax advantages =ou only draw what you need =ou only pay interest on what you borrow
!ies up equity making it unavailable for other needs igher interest rate than a first mortgage !ies up equity making it unavailable for other needs
%ome e&uit' loan
0redictable fixed payments 0ossible tax advantages
igher interest rate than a first mortgage @annot pay down and withdraw additional funds
('pes of Personal Loans
2n the basis of mode of repayment, personal loans are of three types % installment loans, balloon loans and single payment loans. !nstallments loans are repaid in the form of monthly installments. he monthly installments carry both the principal and the interest elements of a loan amount. !n case of balloon loans, interest is paid at regular intervals and the principal amount is repaid at the end of the loan period. !n case of single payment loans, the entire principal as well as its interest is paid at the end of the loan period. )nstallment Loans* Installment loans are paid in regular amounts on a schedule, usually monthly, until the loan amount is repaid. !here are no closing fees associated with installment loans. Single Pa'ment Loans* In this loan, the entire amount of the loan is
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PERSONAL LOAN
due at the end of the loan period. !his is probably the most familiar kind of loan to most people, where the entire sum of the loan is paid back at once, only with interest. +alloon Loan* Aimilar to single-payment loans, balloon loans sometimes allow more than one payment, but generally have most of the amount due at the end of the loan period. 2n the basis of mode of repayment, personal loans are of three types % installment loans, balloon loans and single payment loans. !nstallments loans are repaid in the form of monthly installments. he monthly installments carry both the principal and the interest elements of a loan amount. !n case of balloon loans, interest is paid at regular intervals and the principal amount is repaid at the end of the loan period. !n case of single payment loans, the entire principal as well as its interest is paid at the end of the loan period.
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PERSONAL LOAN
H'(C (an" offer wide range of personal loan li"e:Iome renovation or ot er ome related e($enses. *arria!e e($enses.
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PERSONAL LOAN
Travel e($enses. Education e($enses. Transferrin! an e(istin! loan from anot er ban%. Purc asin! consumer durables or e>ui$ment. Retirin! ot er debts. An" ot er $ersonal needs and contin!encies. 'le(ibilit" to c oose t e E*I dates , )st or )0t of ever" mont
F,ATUR,' 'le(ible $ersonal loan tenor of u$ to 1 "ears 4i.e. )-# )6# -;# /3#;-# ;6 and 30 mont s5. Personal loans available from Rs. 10#000 u$ to Rs.)1#00#000K. Eas" mont l" re$a"ment t rou! E>uated *ont l" Installments 4E*I5 wit
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PERSONAL LOAN
$ost,dated c e>ues or direct debit to "our ban% account from ISBH India. Transfer of an e(istin! $ersonal loan from anot er ban% to ISBH India# at attractive interest rates. No collateralB!uarantor re>uirement. Eas" documentation# >uic% $rocessin! and disbursal. Iassle free $ersonal loan based on )- mont s credit cardBretail loan trac% record.
,ligi!ilit# Criteria:
). A$$licant can be salaried B self,em$lo"ed individuals and s ould be a resident Indians. -. Professional self,em$lo"ed individuals eli!ible for a $ersonal loan are &octors# H artered Accountants# Host Accountants# Hom$an" Secretaries# Arc itects# En!ineers and *ana!ement 8raduates. /. T e minimum a!e of t e A$$licant B 8uarantor s ould be -) "ears for salaried and self,em$lo"ed individuals. ;.T e ma(imum a!e of t e A$$licant B 8uarantor at loan maturit" s ould be 16 "ears for salaried individuals 430 "ears for Hentral 8ovt. em$lo"ees5 and 31 "ears for self,em$lo"ed individuals. 1. T e minimum "ears in continuous em$lo"ment B business s ould be ) "ear for salaried individuals and - "ears for self,em$lo"ed individuals. 3. T e minimum net annual income s ould be Rs.?1#000 $.a. 4includin! co, a$$licantCs or a$$licantCs income5 for salaried and self,em$lo"ed individuals.
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PERSONAL LOAN
?. T e minimum sta" at current residence s ould be ) "ear for salaried and self,em$lo"ed individuals. Terms and conditions a$$l". All loans at t e sole discretion of T e Ion! Oon! and S an! ai Ban%in! Hor$oration Limited# India. Loans available for a$$licants and $ro$erties in and around t e limits of cities w ere ISBH as branc es and is sub=ect to c an!e from time to time. Do$ ments For salaried individ als ). Latest salar" sli$s s owin! statutor" deduction. OR -. 'orm )3 4declaration from em$lo"er !ivin! details of income and deduction# dul" si!ned b" an aut orised si!nator" of t e com$an". /. Latest ac%nowled!ed IT returns and ;. Ban% statement for t e last t ree mont s For self-emplo#ed individ al ). Hom$utation of income for last two "ear certified b" a HA. -. PBL and balance s eet for t e last two "ears certified b" a HA. /. Ho$" of ac%nowled!ed IT returns for t e last two "ear. ;. Ban% statement for t e last si( mont s. %hoto identit# .an#one+ ). Pass$ort -. P oto $an card /. &efense identit" card ;. :oters identit" card 1. &rivin! license 3. P oto ration card ?. 8overnment identit" card. %roof of residen$e .an#one+
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). Pass$ort -. Ration card /. Tele$ one bill ;. Electricit" bill 1. &rivin! license 3. Societ" out !oin! bill ?. :oter I& 6. Life insurance $olic" Note : Onl" $ass$ort can be used as bot $roof of individual identit" and $roof of residence address %roof of age .an#one+ ). Pass$ort -. &rivin! license /. :oter I& ;. Sc ool livin! certificate 1. P oto ration card
/ eas# wa#s to repa# personal loan
). lower E*I in t e first "ear • You can start b" re$a"in! an amount "ou can afford toda". • After a "ear# "ou can $a" a i! er E*I. -. Interest on utilise loan amount onl" # not on t e entire loan • Sim$l" estimate t e ma(imum loan amount "ou need. You can
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T.Y.BBI
PERSONAL LOAN
wit draw mone" as w en "ou need and interest will be c ar!e onl" on t e amount "ou wit draw. /. Last E*I waiver • T is re$a"ment o$tion !ives "ou t e benefit of !ettin! a last E*I refunded b" $a"in! a mar!inall" i! er interest rate 4available for loan of ;6 mont s tenor onl" an a$$licable if "ou re$a"ment is consistent t rou! out t e $eriod of t e loan. ;. Standard E*I re$a"ment • Your E*I for eac mont will be t e same for t e tenor of t e loan.
' rve# Report I ave done a customer surve" from )st Au!.# to /)st Au!.# -00? about $ersonal loan $rovided b" t e ban%s in t at surve" I ave as%ed a few >uestions to t e $eo$le and I ave !ot followin! resultsF Are "ou aware of t e $ersonal loanP
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#!! ! .! -! ,! ! A/ are 0na/ are A/ are 0na/ are
&o "ou $lan to $ursue $ersonal loan in futureP
3! .! 2! -! 1! ,! #! ! %ouse 4ducation Car 5ther %ouse 4ducation Car 5ther
7 ic ban% would "ou li%e to $refer for $ursuin! $ersonal loanP
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PERSONAL LOAN
#!! ! .! -! ,! ! Private Public Foreign Private Public Foreign
7 at t"$e of interest rate would "ou $referP
3! .! 2! -! 1! ,! #! ! Fixed Floating Fixed Floating
Iow muc im$ortance as t e $ersonal loan assumeP
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PERSONAL LOAN
3! .! 2! -! 1! ,! #! ! Lo/ 6oderate %igh Lo/ 6oderate %igh
&o "ou t in% t e $rocedure for $ersonal loan isQ
3! .! 2! -! 1! ,! #! ! Convenient Lenght' Convenient Lenght'
Fre0 entl# as"ed 0 estion
#7 8hat are the minimum and maximum loan amounts9
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PERSONAL LOAN
=ou can avail of loans ranging from :s 1*,***B- to :s '5,**,***Bdepending on your eligibility, income and repayment capacity. ,7 8hat are the loan tenure options9 !he loan can be repaid over a period of '1 to 9* months. 17 Are there an' additional charges9 - processing fee of 17 of the loan amount is payable upfront. !his fee will be deducted from the disbursal amount payable to you. -7 %o/ much time /ill it ta:e for m' loan to be approved9 %oans are approved within 31 hours of submission of complete documentation. 27 Do ) have to provide an' securit'; collateral or guarantors9 >o security, collateral or guarantors are required for obtaining a 0ersonal %oan. .7 %o/ do ) repa' the loan9 =ou can repay the loan in Cquated &onthly Instalments /C&I<s4 through post-dated cheques favoring I@I@I #ank %imited, or if you have an I@I@I #ank account you can mandate us to directly debit the same.
37Can ) prepa' m' loan9 =es, you can prepay the entire loan outstanding anytime after '(* days of availing the same. 0repayment charges as applicable would be levied on the outstanding loan amount. >o part prepayment is allowed.
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7 Do ) need to open an account /ith )C)C) +an: for availing and"or servicing the loan9 We will encourage you to start a banking relationship with us so that we will be able to offer a host of other value added services, which are complementary to the loan, however opening an account with us is not mandatory. <7 %o/ do ) approach )C)C) +an: for a Personal Loan9 =ou can approach us in any of the following ways
• • • •
1D hour @ustomer @are @entre -pply Enline customer.careFicicibank.com =ou can Gust walk into any of any branches.
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PERSONAL LOAN
INTRODUCTION
A loan is a redistribution of financial assets over a time between t e lender and t e !iver of t e loan. T e borrower initiall" receives an amount of mone" from t e lender# w ic t e" $a" bac% usuall" but not alwa"s in re!ular installments to t e lender. T is service is !enerall" $rovided at a cost# discounted as interest on t e debt# to t e lender. Actin! as a $rinci$al of loans is one of t e $rinci$al tas% for financial institution for ban%s. Loans are !enerall" funded b" de$osits for ot er institution issuin! of debt contract# suc as bonds is a t"$ical form of fundin!.
&ue to risin! of basic needs# $ersonal loan facilitated b" various ban% $la" a vital role in fulfillin! t e $eo$le desire of bu"in! t eir dreams. T e" are ideal w en we need or bu" a $roduct for ideal w en do not ave read" cas . Personal loan are better c oice com$ared wit consumer durable loans. In fact before we consider ta%in! a consumer durable loan we mi! t consider a $ersonal loan instead as t e $rocedure is sli! tl" lon!er but t e rate of interest is lower. 'le(ibilit" of duration and
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PERSONAL LOAN
availabilit" of various sc emes ma%e $ersonal loan an attractive o$tion. It is an all $ur$ose a loan# w ic is !iven in most cases wit out an" %ind of securit" li%e a car# ome# s ares or an" %ind of $ro$ert". *ost nationali+ed# forei!n# and co,o$erative ban%s offer $ersonal loan. Besides ban%s# some ot er finance com$anies and financial institution also offer t em. Lendin! rates differ for different financiers and currentl" from )-. to /0.. T ese loans are available in t e ran!e of Rs )1000 to Rs )0 la% s. T e re$a"ment $eriod varies widel"2 some lenders usuall" $ermit re$a"ment u$ to a ma(imum of 30 mont s. And most lenders restrict t e lendin! to a ma(imum $eriod of /3 mont s. *ost ban% will !ive an"w ere between Rs-0# 000 and Rs)0 la% s 4Rs ) million5 for a ma(imum for $eriod of 30 mont s. To be eli!ible for t e loan "ou need to be between t e a!e of -1"ears and 16"ears in case of a salaried individual or between -1 "ears and 31"ears if "ou are self,em$lo"ed. 7 ile issuin! t e loans# ban%s loo% at factors li%e "our salar" or $rofit# t e number of "ears "ou residence. ave wor%ed in a $articular or!ani+ation and t e number of "ears "ou ave sta"ed in "our current
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Advantages and disadvantages of personal loan
7it a lot man" lenders on t e bloc% willin! to offer t eir loan services to all# a$$l"in! for a loan nowada"s# is no lon!er a $roblem. 8one are t e da"s w en "ou ad to wait to bu" somet in! or !o out and do w at "ou wanted to# because a assle free and available to all $ersonal loan is now no more a dream# but a realit". Toda"# various loans are available in t e mar%et to suit individual needs of t e $eo$le. In Personal Loans as well# different t"$es of loans are available. T e" can serve "ou well in "our financial limitations w ile ma%in! "our livin! better. No dela" s ould be done in availin! a loan es$eciall" w en it suits "our financial situation and can be available to "ou in a desired time. A $ersonal loan is often described as unsecured loans because it allows "ou to borrow mone" wit out avin! to $rovide securit" a!ainst it. You can use t e $ersonal loans for t e $urc ase of "our ouse or a car. T e $ersonal loans are better for a lon!er time $eriod.
Following are some of the advantages of the personal loans,
7 ile ma%in! an evaluation of t e cost of t e loan "ou need to
consider t e TAR 4Total Amount Re$a"able5 w ic means t at t e
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PERSONAL LOAN
total amount t at "ou owe towards t e ban% or a lender w ic also includes t e rate of interest on t e loan and t e $a"ments need to be made on a mont l" basis. A suitable deal is w ere "ou !et a lower TAR. , T e ma(imum amount t at "ou can borrow ran!es u$ to 9-1#000 and t e time $eriod for t e refund is u$ to ten "ears. T e advanta!e wit t e $ersonal loan is t at w en "ou ta%e a ma(imum amount as a loan t en "ou ave to $a" a lower rate of interest. It is totall" different from t e terms and conditions for t e mort!a!e. T e unsecured $ersonal loans are not $rotected for "our $ro$ert" so if "ou are not able to refund t e loan t en "ou can be rest assured t at "our ouse is safe. , T e interest rates for t e $ersonal loans are also fi(ed. T is ma%es it eas" for "ou to ma%e a $lannin! for t e $a"ments t at as to be made. T e refundin! amount also remains sta!nant all t e wa" t rou! t e time $eriod of t e loan. , 7it a d"namic mar%et scenario of loans t e rate of interest as seen so man" u$s and downs. Now to !et a loan it as become sim$ler t an ever before. T e financial com$anies offer "ou loans t rou! t eir tele$ one service. T e" ave toll,free numbers and t e" !uide and $rovide "ou t e best deals and offers. Following are some of the disadvantages of the personal loans: - :arious financial com$anies and clever lenders introduce certain $lans li%e, ma%e a $urc ase and $a" it later# offer free !ift items# etc. T ese will onl" raise "our $rice of t e loan. So ta%e a wiser decision and !o for t e basic loan wit favorable terms and conditions.
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Alwa"s ma%e a c oice for t ose loans w ic
ave a low rate of
interest and w ere t e terms of t e refund are moderate. , &on<t ma%e a ast" decision in c oosin! a $ersonal loan. It is not ri! t to ta%e a loan from =ust anot er ban%. *a%e a surve" and tr" to find out various offers and $lans t at various ot er ban%s and financial com$anies ave to offer. Now wit t e internet t in!s as become ver" sim$ler. You can visit various financial com$anies# w at are t e offers and $lans t ese com$anies are offerin!. Accordin!l" "ou can ta%e a decision w ic ever $lan suits "ou. , T e PPI 4Pa"ment Protection Insurance5 $rovides "ou t e refund on a mont l" basis if "ou are not able to wor%# "ou ave met wit an accident# in case "ou ave suffered a eav" loss in "our business# "ou are not em$lo"ed an"w ere# and ma%e a $a"ment for "our loan in case of "our deat . You s ould be aware of t is t"$e of insurance as it is a costl" affair and it adds an amount ran!in! from 9)#000 to 91#000. , Accordin! to a surve" ma=orit" of t e $ersonal loans are $aid off before t e com$letion of t eir tenure. You need to loo% out for t ose lenders w o ta%e eav" amount for t e settlin! of "our loans before t e tenure. - You ave to andle t e annual $ercenta!e rates ver" carefull" as it entirel" de$ends on "our financial credibilit". You $robabl" mi! t not be eli!ible as to be entitled for it. You need to ave a !ood credit istor" ot erwise "ou won<t be able to >ualif" for t e lender<s $otential customer list.
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Here are few g idelines !efore ta"ing an# $on$rete de$ision regarding the personal loans: , Anal"+e all t e offers and sc emes before a$$l"in! for t e loan. T ere are various lenders w o are not real and t eir motive is =ust to earn $rofits. , To be entitled for a $ersonal loan t e $rocedure followed is ri!orous alt ou! t ere is less documentation involved in it. , 8o t rou! t e contract t orou! l" and reassess t e closure $rice and for an" idden cost 4If an"5. It is an im$ortant ste$ w ic will onl" benefit "ou. , If "ou are $lannin! for a $ersonal loan t en most of t e time it is c ea$er t an !ettin! a credit card. - E(cludin! t e consumer durable loans t e rate of interest for t e $ersonal loans are i! .
Personal loans - Special emphasis on bad credit personal loans
Before approving a loan application, the lender calculates the following two affordability parameters to make sure that the chances of repayment are not bleak:
•
Credit history, to ascertain the loan seeker's past financial record as good or average or bad. Debt to income ratio (D ! " Debts#!ncome$, to compute the loan seeker's current monetary position.
•
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Depending on the above%mentioned calculations, the lender categori&es the loan seeker as: prime customer (person with a good credit record$, near prime customer (person with an average credit record$ or sub%prime customer (person with a poor or bad or adverse credit record$. ' sub%prime client is further categori&ed to get a better idea of the ha&ards that he may pose % low adverse credit, medium adverse credit or heavy adverse credit. 'fter this detailed evaluation and classification, the lender and approves decides the the loan loan application#amount terms#conditions. (ub%prime loan seekers can avail credit support under the 'bad credit personal loans' category. 'vailable in both secured and unsecured form, this special personal loan sub%category helps people bring their lives back on track.
)or obvious reasons, prime and even near%prime customers can negotiate for a favorable loan deal. But, sub%prime customers have to settle for high '*+s, and stringent loan terms and conditions. (till, secured loans are more gainful and are generally easier to get as compared to unsecured loans.
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Secured
bad
credit
personal
loans,
the
best
solution for homeowners and property owners are comparatively safer for the lenders, as they are availed by pledging collateral. 's a result, there are chances that the loan seeker may get a less stringent loan deal. But, unsecured bad credit personal loans, probably the only option for those ,- residents who are incapable of offering collateral, are risky for the lenders, as they are availed without pledging collateral. 's a result, the creditor cannot afford to offer a fle.ible loan deal.
How to ensure a safe personal loan?
he online media for applying for loans is becoming increasingly popular these days. Being time saving and convenient, it's preferred by most of the borrowers. /obody likes visiting the bank manager in persona to apply for a loan. But, one must ensure that s#he is applying to the right lender and not to a loan shark. 0oan sharks are unlicensed lenders who take advantage of those who are re1ected elsewhere or are
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suffering from e.treme bad credit. lone parents, bad credit holders, etc.
hese lenders
usually prey on vulnerable people like the unemployed, (o, whenever you apply for personal loans, make sure that the online by they lender you are dealing with is registered with 2) regulated therefore )!(' 0oan association$. (2ffice of )air ()inance sharks are not the rading$ and (tandard and hese licensed law.
!ndustry
operate
outside
unlicensed moneylenders charge very high interest rates and use violence and threat if the borrower is unable to repay the loan. *ersonal loans should be taken with great care and caution. he loan agreement should be read carefully before signing and if needed, professional help from a financial consultant should be taken. 'n unlicensed lender otherwise may make you life hell. 3e does the following:
• • •
4rant you personal loans on very e.pensive rates 3arasses you if you fall behind your repayments *ressuri&es you to borrow more from them to repay your e.isting debts
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Personal cash loan
!t can be a viable short-term solution for temporary monetary problems because these allow consumers to receive funding for bills, expenses, and other necessary costs. When handled
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wisely, they can improve an individual’s current financial situation. When not handled wisely, however, a personal cash loan can lead to serious trouble. If help is needed, funding can be qualified for quickly, with little documentation. owever, because of higher interest rates and serious default terms, one should cautiously consider taking out this form of funding. !here are many different funding programs, including payday advances, cash advances or other unsecured cash loans. !hey are available through store-front and financial companies, as well as on the Internet. While there really are no regulations for which a personal cash loan can be used, people typically use them to help pay bills on time, or to pay for some unforeseen expense that they do not have adequate savings to cover. "nfortunately, some people may also use personal cash loans to meet their perceived need for instant gratification. "sing money in this manner can get a person into financial trouble quickly. #ecause these programs can have high interest rates and little tolerance for missed payments, they are best used in emergency situations, or when the borrower knows they can repay the obligation. $etting a personal cash loan can be quick and easy, which is good for the person who is in financial need. %enders who offer personal cash loans do not have many requirements. &ost lenders require the borrower to be at least '( years old and to have had a checking account open and in use for at least )* days. !he borrower also must show documentation that proves they receive a minimum of +'*** per month to qualify. &ost lenders typically do not require good credit and rarely run
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credit checks for instant loans. bankruptcies.
owever, lending companies
may check for other outstanding debts or in-process !his funding can be a blessing or a curse to the one who is borrowing. When a person takes on a personal cash loan, it is important to reali,e they are in debt to the lender. -s the #ible says, .borrower is servant to the lender. /0roverbs 11234. !his can be very overwhelming and should encourage the individual to seek financial freedom. owever, unforeseen financial difficulties sometimes arise and people need personal cash loans to pay these obligations. It is important to be very selective in this process and choose lenders that offer the lowest rates and best terms.
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Personal loan guaranteed
0ersonal loan guaranteed are available from many sources, and are relatively easy to obtain either through the Internet, finance company, bank, or even a credit card company for anyone with collateral. !he quickest /and apparently most common4 financing is payday loans. !hey are secured by the next paycheck, and allow the borrower to receive funds between paydays. !hey do not require a credit check when they are short term and +5** or less. !here is a fee for this type of financing that is taken out up front, so actual funds received from a personal loan guaranteed are the amount less the fee. When larger amounts are needed, such as to buy a computer, or furniture, or to pay tuition or vacation expenses, a credit check will most certainly be done. In that case, in order to avoid having several companies check credit /and thus lowering personal credit rating4, it would be wiser to use a broker who would make a one-time check and pass that information on to possible lenders. - bank statement and paycheck stub will be needed to prove earnings enough to qualify for this personal loan guaranteed. !ypical fees for personal loans guaranteed are '5-6*7 of the amount borrowed. When one has to begin borrowing on future paychecks or on the home, it may a good time to review financial priorities. It is important to keep money in its proper place2 .8or the love of money is the root of all evil2 which while some coveted after,
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they have erred from the faith, and pierced themselves through with many sorrows.. /' !imothy 92'*4. :emember that $od promises each person who believes in concentrate on the best that is yet to come. -nother source is the home equity line of credit. !he larger personal loans guaranteed by the equity in the home are good for debt consolidation, home remodeling and the like. !he interest rate is lower than the payday loans. !his kind of financing equates to a second mortgage, and if selling a home before it<s paid off, that personal loan guaranteed comes out of the sale proceeds first. When counting on the proceeds of a house to make a down payment on the next one, this could present a serious problem. !he best way to handle this kind of personal loan guaranteed is to stay put until both the loan and mortgage are paid off. im treasures unimaginable in heaven. ;on<t store up treasures here,
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There are !asi$all# Two T#pes of %ersonal &oans:)5 Secured loan -5 Ansecured loan )5 Secured loan a5 T e loan t at is secured a!ainst some sort of fi(ed or immovableBmovable asset is %nown as secured loan. b5 T is sort of !uaranteed $ersonal loans is easil" available on account of t e collateral t at is $rovided alon!side2 t ereb" ma%in! t e lendin! institutions more comfortable in forwardin! t e loan. c5 Secured $ersonal loans involve rates of interest t at are muc lower and eas" o$tions for re$a"ment. d5 &ue to t e collateral t at is $rovided# ban%s and financial institutions usuall" are un$erturbed b" defaults in $a"ments or b" debts t at are $endin!. e5 Secured $ersonal loans are made available to t e individual wit in a $eriod of t irt" da"s after submittin! an a$$lication.
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How Does A 'e$ red %ersonal &oan (enefit the (orrower And the &ender) ). Secured Personal Loans can be re$aid over a lon!er $eriod of time# wit a lower mont l" $a"ment. -. T e" are cost effective on account of t e low rates of interest c ar!ed on t e loan. /. Since t e loan as been secured b" $led!in! t e assets of t e borrower# t e ris% to t e lenderCs investment is !reatl" reduced. ;. T eir eas" availabilit" is anot er factor. :er" few loan a$$lications for secured loans are turned down2 since t e loan would be secured on t e stren!t of t e borrowerCs assets Secured $ersonal loans can onl" be obtained b" a borrower after %ee$in! an asset suc as real estate $ro$ert"# car or =ewelr" as collateral wit t e lender. T ese %inds of loans el$ t e lenders ma%e sure t at t e" will !et t eir mone" bac%# and ence t e" a$$rove and $rovide t e loans for an" amount of mone" wit more securit". Ot er t an t at# t e a$$roval of t e loan a$$lication also de$ends a lot on t e borrower<s credit istor"# is current monetar" $osition# is current em$lo"ment status and t e obtainable e>uit" in t e de$osited collateral.
*+ Unse$ red loan
An unsecured $ersonal loan allows "ou to borrow mone" wit out avin! to $rovide securit" a!ainst it# suc as "our ome or car. T is is w at ma%es a secured $ersonal loan different from unsecured $ersonal loan. T e $eo$le w o don<t own t eir own
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students w o are livin! awa" from t eir ome are t e most suitable borrowers of unsecured $ersonal loans. If "ou don<t ave enou! financial resources to re$a" t e loan and t ose w o don<t want to $ut t eir costl" items in =eo$ard"# t en t e unsecured $ersonal loans are t e best o$tion for "ou. You ave t e dan!er of !ettin! "our $ro$ert" sei+ed in secured loans and unsecured $ersonal loans are total contradictor" to it w ic offers less bot eration to t e borrowers. Asuall" t e borrowers are attracted towards t ose offers w ere "ou are assle,free. T ese all factors are t e ma=or contributors to t e $o$ularit" of t e unsecured $ersonal loans. An individual can ta%e a $ersonal loan for a variet" of reasons. Loans for $ersonal debt el$ $rovide funds to $urc ase "our dream car# $a" for "our mort!a!e or ome im$rovement re>uirements. In fact unsecured $ersonal loans el$ meet most of t e financial emer!encies t at an individual can t in% of. T e main advanta!e of t e unsecured $ersonal loan is t at an"bod" is entitled for an unsecured $ersonal loan w et er wit a !ood credit or a $oor credit. 8enerall" it as been witnessed t at a borrower wit a $oor credit is not !iven t e unsecured $ersonal loans easil" b" t e lenders. But t ere are some lenders w o still $rovide unsecured $ersonal loans to t e $eo$le wit $oor credit. T ere are $eo$le w o ave t e $rivile!e of unsecured $ersonal loans after bein! a ban%ru$t or after t eir $ro$ert" bein! ta%en over.
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T e rate of interest is i! er for t e unsecured $ersonal loans as com$ared to t e secured $ersonal loans. In t e case of unsecured $ersonal loans t e lender is at a ris% because incase "ou are not able to ma%e a re$a" of t e loan t en t e lender as not in! to ta%e t e $ossession of as t ere is not collateral made a!ainst t e loan. T e unsecured credit line and unsecured credit cars are also forms of unsecured $ersonal loans. T e unsecured credit cars are offered to t ose borrowers t ose w o are financial stable and ave a !ood financial bac%!round. 'or unsecured credit card "ou need not de$osit a considerable amount and on t e contrar" to t is "ou ave to ma%e a decided amount in advance in secured credit cards. T e main and t e most im$ortant factor of t e unsecured $ersonal loan is t at "ou need not de$osit an" collateral a!ainst t e loan to t e lender. T rou! unsecured credit line t e businessmen are benefited t e most as t e" are in need of cas . T e unsecured credit line is offered accordin! to one<s financial status. It is u$ to t e business man w at e wants to do wit t e credit w et er e uses to bu" some mac ines or use it to e($and is business. It is evident t at t e interest is onl" c ar!ed on t e amount "ou ave ta%en. T e rate of interest for t e unsecured loan is relativel" i! er t an t e secured loans. No doubt t at unsecured $ersonal loans are t e most $referred b" ma=orit" of t e $eo$le but t ere are some strict rules and !uidelines attac ed wit concrete decision "ou need to it. Before "ou arrive to an" ave all t e details of t e details
$ertainin! to t e unsecured $ersonal loans. It is true t at "ou don<t ave to ma%e an" collateral for t e unsecured $ersonal loans but still
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t e refunds as to made on time. Dust in case "ou fail to ma%e a refund of t e loans t ere are $robabilities t at "ou can face federal lawsuit a!ainst "ou w ic will onl" ma%e t e matter worse. Your current financial status will be affected and in a worse scenario "ou will be denied for an" form of loans in t e comin! time. 'ome important fa$ts a!o t nse$ red personal loans: , 'or unsecured $ersonal loan "ou need to ave a !ood $ast financial record. T e basic condition for offerin! an unsecured $ersonal loan is "our credibilit" to refund t e loan. , 'or !ettin! an unsecured $ersona loan "ou do not ave to de$osit an" collateral a!ainst t e loan wit t e lender. , T e loan a$$roval $rocess of t e unsecured $ersonal loans is ver" >uic% t e reason bein! less $a$erwor% is $ut into use. T ere is no a$$raisal of t e $ro$ert" involved addin! to t e fast a$$roval $rocess of t e unsecured $ersonal loans. , T e loans are a$$roved ac ievin! a tar!et of 9-1#000. , T e rate of interest of t e unsecured $ersonal loan is d"namic in nature and can differ from seven to t irt" $ercent. , T e terms and !uidelines of t e unsecured $ersonal loans are not so favorable. T e time $eriod for t e re$a"ment of t e loan can var" from si( to ten "ears. Ander t is condition t e smaller t e loan $eriod t e more "ou ave to $a" on a mont l" basis.
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The (enefits !ehind an Unse$ red %ersonal &oan
•
T ere is no re>uirement of collateral# and t e borrower need not $led!e is assets to $rocure t e loan. T ere is no necessit" for documents re!ardin! t e borrowerCs ta( returns# or for financial statements. T e information on t e borrowerCs financial bac%!round need not be verified b" su$$ortin! documents. Euic% a$$rovals# and an eas" a$$lication $rocess# are ot er attractive benefits of t is loan
•
Unsecured loans + unsecured personal loans - Favorites among the borrowers.
!n the last two years, the percentage of unsecured loan takers has increased considerably in the ,- loan market. /ot only the tenants, most homeowners also prefer taking loans without pledging any asset, especially the home, as security to the lender. he risk of repossession of home plays heavy on the minds of the borrowers, when they weigh different loan options. ,nsecured loans are masters in luring customers because of the features cited below:
•
'vailable for a range of different amounts and repayment terms. /ot secured against any asset.
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/o restriction on the purpose of availing loan. 'mount available usually ranges from 5677 to 586,777. 0oan tenure may stretch from 9 months to 87 years. Different lenders offer different '*+s. :ost borrowers wonder that if nothing is secured, then on what basis the loan amount is calculated for unsecured personal loans. here are many factors that play a vital role in deciding the amount to be granted as unsecured loans. (ome of the parameters are listed below. Credit 3istory of the borrower% ' borrower with few arrears, defaults, and miss payments is more likely to get a greater amount than the one who has an unhealthy credit record. (o, better the credit score of the borrower, higher the amount granted as unsecured loans. Disposable income of the borrower % By disposable income, one means the appro.imate income of the borrower left per month after paying all living e.penditures, installments of other loans and credit card payments etc. 2n the basis of this, the lender decides how much amount the borrower will be able to pay as the installment of the new loan.
•
•
•
•
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•
Debt to income (D !$ ratio%
his determines the
affordability of the borrower. D ! is calculated by dividing the monthly income of the borrower by his e.penditures. his reveals the paying capacity of the borrower. !f the D ! ratio is more than 7.;9, the borrower will get a good amount as unsecured personal loans. Credit policies of the lender % <very lender has a different credit policy. (o, the loan amount, tenure and the '*+ charged is sub1ect to the lender's criteria. )or instance, the high street banks may not at all provide unsecured personal loans to those with bad credit history= whereas, an online lender may approve the loan. here are innumerable factors that help in determining the loan amount of unsecured loans, the ma1or ones being discussed above. he borrowers' re>uirements and say also works. !n most cases, the borrowers mention the purpose for which they are procuring unsecured loans in the loan application form. 's per the purpose, the lenders grant unsecured loans.
•
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'hort Term %ersonal &oans S ort Term Personal Loans can be !ot t rou! ban%s and online financial com$anies# and a wide variet" of ot er sources. 7it suc a S ort Term Personal LoanF T e rate of interest involved is usuall" i! . T is is because t e $eriod of re$a"ment is usuall" for a s ort time. Suc t"$es of s ort term $ersonal loans ave to be beneficial to bot t e borrower and t e lender# and i! rates of interest are one of t e wa"s b" w ic a ban% or a financial com$an" stands to benefit. - T is t"$e of s ort term fundin! is often utili+ed to el$
individuals w o are in need of var"in! sums of mone" for a s ort $eriod. *an" of t e lendin! com$anies usuall" $rovide for suc a loan# and also sti$ulate t e ma(imum amount of mone" t at can be borrowed under suc a circumstance. - Ban%s# w ile !ivin! t is t"$e of s ort term $ersonal loan# usuall" re>uire collateral# before disbursin! t e same. Online financial com$anies onl" re>uire a credit c ec%# but lend ver" small sums of mone". Ban%s do not offer more t an G)1# 000 or G-0# 000 dollars as well# and individuals see%in! lar!er sums of mone"# would ave to ta$ ot er sources for fundin!. - Because of t e ne!ative and $ositive as$ects of s ort term $ersonal loans# it is recommended t at t e individual does is researc t orou! l"# before e a$$lies for fundin!.
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Fast Cash Advan$e &oan Sometimes# "ou ma" be in need of a >uic% $a"da" loan# so t at "ou could meet an une($ected mone" crisis. Har re$air and ot er une($ected bills usuall" occur at inconvenient times. In case "ou do not ave t e e(tra cas to meet t ese une($ected e($enses# "ou could reall" consider a$$l"in! for a cas advance. A Fast Cash Advan$e &oan: - Is similar to a ban% loan, onl" cas advances are a lot easier to >ualif" for# and en=o" a s orter term. H ances t at "our a$$lication for a ban% loan ma" be denied are i! as ban%s ave a re>uirement of sufficient income# a collateral and !ood credit ratin!. - Ias a two wee% term. T erefore "our loan is due alon! wit "our ne(t $a"c ec%. Re>uires t at t e a$$licant must be at least )6 "ears of a!e. T e cas advance com$an" would also be c ec%in! out Bconfirmin! "our salar" and em$lo"ment. 7 ile t e com$an" is %een to el$ "ou out# it also wis es to satisf" itself t at "ou can re$a" t e loan. - Renders "ou eli!ible to receive funds u$ to a ma(imum of G)000# wit a cas advance. Some com$anies allow lar!er sums to be borrowed. - T"$icall" fast cas advance loans are due wit in t e $eriod of two wee%s. Ta%in! t e circumstances of t e borrower into consideration owever# some cas advance com$anies would e($ect t at at least alf t e loan amount will be re$aid in two
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wee%s# and t e balance in a mont . Suc loans are called /0 &a" Pa"da" Loans. - But remember t at before ta%in! suc a /0 da" $a"da" loan# c oose a com$an" t at allows for lon! term loans# and do not assume t at all cas advance com$anies would !ive lon! term cas advance. 'ar better to enter into a lon! term loan a!reement# before ta%in! t e loan# ot erwise "ou would ave to $a" e(tra interest and fees for t e late $eriod. *ilitar" Personal Loans are eas" for servicemen to !et an"time. *ilitar" =obs involve !ood salaries and i! status and sometimes t ese could com$licate matters b" incurrin! e(tra e($enses.
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A %,R'ONA& &OAN OF ICICI (AN-
An IHIHI Ban% $ersonal loan is t e one sto$ for all "our financial needs to fulfill an" of "our desires. You can now secure a fast and eas" $ersonal loan for an amount u$ to Rs )1la% s at attractive interest rates# wit an IHIHI Ban% $ersonal loan. 7it IHIHI Ban% $ersonal loan "ou can !et instant mone" for a wide ran!e of "our $ersonal needs li%eF, ). Renovation of "our ouse -. A olida" wit "our famil" /. Your c ild<s education ;. Bu"in! a la$to$ or a electronic e>ui$ments 1. *edical e($enses or an" ot er emer!encies. T e best $ersonal loan cant<s !et easier t an an IHIHI Ban% $ersonal loan. To secure a instant $ersonal loan all "ou need is one of t e followin!F, ). A salar" sli$ -. Your credit card statement
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/. Re$a"ment trac% of an e(istin! loan. 'or instant# at IHIHI Ban%# "our net salar" needs to be @3#000 annuall" or "ou need to ave a net after ta( of Rs 30#000 $er annum. If "ou are a salaried individual "ou s ould ave wor%ed in "our current or!ani+ation for at least ) "ear and if "ou are self,em$lo"ed t en "ou must ave been runnin! "our business for at least / "ears. You must ave also been in "our current residence for at least a "ear. T e loan is sanctioned wit in / wor%in! da"s. T e $rocessin! fee is !enerall" around -. of t e loan amount and is deducted u$ front t e disbursement amount. *ost ban% c ar!e $re,$a"ment $enalt" of between /. to 1. of t e remainin! amount. Ob=ective ). T e various $ersonal loan $rovides b" IHIHI Ban% aims at $rovides financial su$$ort from t e ban%in! and financial s"stem to t e need" $eo$le for ta%in! $ersonal loan in India. -. T e main em$ asis is t at t e need" $eo$le s ould be $rovided wit an o$$ortunit" to ta%e $ersonal loan wit affordable financial su$$ort from t e ban%in! s"stem wit terms and condition. /. To ma%e $eo$le aware to ta%e advanta!es of t e various t"$es of $ersonal loan $rovided b" various ban%. ;. To $rovide eas" finance to t e $eo$le. 'EATARES
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). Personal loan wit a $eace of mindF , IHIHI ban% $ersonal loan $rovide a free life insurance cover 4includin! total and $ermanent disabilit" due to accident or sic%ness5 to t e value of t e loan outstandin!. T e insurance cover is for outstandin! balance of t e $ersonal loan as on date of deat or total and $ermanent disabilit" due to accident or sic%ness# will be covered e(cludin! an" defaulted installment. -. A loan for ever" oneF , loans for bot s$ouse. /. Euic% and assle free loanF, >uic% $rocessin! time of -; ours wit assle free documentation. No securit" or $ersonal !uarantors re>uired. ;. 8et more from "our loanF, we offer attractive interest rate wit loan from Rs )0#000lac to Rs )#00#000 lac or to )0 times to t e net remuneration w ic ever is lower. 1. 'le(ible re$a"ment o$tionF, "ou ave fle(ibilit" to H oose t e re$a"ment $eriod of u$to 1 "ears 430 installments5 and we also allow earl" settlement at a nominal fee. 3. Loan ran!in! from Rs -0#000 to Rs )1 lac salaried and self, em$lo"ed $ersonnel wit freedom to =ointl" a$$l" wit "our
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T.Y.BBI
PERSONAL LOAN
,ligi!ilit# Terms for #o r %ersonal &oan You can avail of an IHIHI Ban% Personal Loan if "ou meet t e followin! criteriaF Criteria A!e Net Salar" 'alaried 'elf - ,mplo#ed -1 "rs. , 16 "rs. -1 "rs. , 31 "rs. Net annual Net Profit after ta( income Eli!ibilit" , Rs. , Rs. 30#000 $.a of &octors# *BACs# HACs# @3#000 $.a Em$lo"ees
Public Ltd. cos. Arc itects# *NH<s Years 8overnment. in ) Year
Private Ltd. cos. En!ineers# Traders Or J *anufacturers / Years
current =ob B $rofession Years in ) Year current residence ) Year
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T.Y.BBI
PERSONAL LOAN
Do$ ments
Do$ ments . %re 'an$tion+ Latest / mont s Ban% 4w ere Yes 'alaried 'elf ,mplo#ed Yes
Statement
salar"Bincome is credited5 / Latest salar" sli$s Last "ears of ITR wit B Yes Yes
com$utation
income
Hertified 'inancials Proof of Turnover 4Latest Sales B Service ta( returns5 Proof of Hontinuit" current =ob 4'orm )3 B Hom$an" a$$ointment letter 5 Yes Yes
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T.Y.BBI
PERSONAL LOAN
Proof of Hontinuit" current $rofession Hertificate 4IT of Returns B business Yes
Yes
continuit" issued b" t e ban%5 Proof of Identit" B 4an" &rivin! Yes
one5Pass$ort
License B :oters I& B PAN card B P oto Hredit Hard B Em$lo"ee I& card Proof of Residence 4an" one5 Ration Hard B Atilit" bill B LIH Polic" Recei$t Proof of Office 4an" one5 Lease deed B Atilit" bill B *unici$al Ta( recei$t B title deed Proof of Eualification Ii! est &e!ree 4for Professionals B 8ovt em$lo"ees Yes Yes Yes Yes Yes
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T.Y.BBI
PERSONAL LOAN
'ervi$e Charges for #o r %ersonal &oan Enclosed find t e service c ar!es for an IHIHI Ban% Personal Loan Pre$a"ment of t e loan is $ossible after )60 da"s of availin! t e loan. 'oreclosure c ar!es as a$$licable would be levied on t e outstandin! loan. Part $re,$a"ment is not allowed. No ot er fees or commitment c ar!es are levied.
Des$ription
of %ersonal &oans
$harges Loan Processin! -K . of loan amount L H ar!es Ori!ination H ar!es Pre$a"ment H ar!es H ar!es for B Ori!ination H ar!es of ). of loan amount 1. on t e $rinci$al
outstandin! late -. $er mont
$a"ment 4loans5 H e>ue Swa$ Rs. 100B, H ar!es H e>ue bounce Rs. -00B,
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T.Y.BBI
PERSONAL LOAN
c ar!es
NoteF )5 Ori!ination H ar!es are included in t e Advance installmentsB 'irst installment.
-5 Service Ta( and ot er !ovt. ta(es# levies# etc.
Appli$ation %ro$ess
Information
A$$lication to ban%
Processin! a$$lication
&ocuments
:erification /;
T.Y.BBI
PERSONAL LOAN
Sanctionin! of loan
Loan a!reement
&isbursement of loan
Re$a"ment
-e# (enefits ). Small business loan wit no mort!a!e and no securit" re>uired -. T e loan is $rovided in t e form of overdraft# letter of credit or ban% !uarantee and "ou can borrow u$to a ma(imum of Rs. -1 lacs. /. 'aster sanction. ;. 'le(ible $a"ment sc eduled, Part $a"ment or Pre $a"ment. 1. One sto$ solution wit a bou>uet of $roducts. 'e$ rit# Personal loans are ver" fle(ible. T e" do not re>uired collateral securities or assets ban%in!. T e" are disbursed based $urel" on t e financial of t e loan a$$licant. Additionall" "our s$ouse income can be considered in calculatin! t e loan amount $rovided eBs e !uarantees t e loan or t e loan is ta%en
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T.Y.BBI
PERSONAL LOAN
=ointl". &oan Repa#ment Personal loan are re$aid in t e of E>uated mont l" installments. E*I are calculated based on t e loan amount# t e rate of interest and t e tenure of t e loan. MBan%s calculate interest usin! t e reducin! balance met od. T e actual interest is calculated on a dail" reducin! balanceN Transfera!ilit# If "our lender is c ar!in! a i! rate on "our loan and "ou are able to find anot er ban% willin! to lend at lower rate# "ou can transfer loan to t e new ban% and t ereb" reduce t e cost of "our loan.
Advantages and disadvantages of different loan programs
Loan Program Fixed-rate mortgages Advantages 0redictable monthly payments %ess risk if market conditions cause rates to rise "nable to take :ate does not change Adjustable rate mortgages 8lexibility %ower initial monthly payment =ou pay less for short term ownership 0otential higher &ay be easier to qualify for higher loan amounts Stated income mortgages ;on<t need to verify income igher rates >eed a low %!? to qualify payments /at max. interest rate4 advantage of lower interest costs if market changes to lower rates &ore risk Inability to predict future housing costs Disadvantages =ou pay more in interest igher interest rate
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T.Y.BBI
Combination loans (such as an !"#!"#!$ -void 0&I 0otential tax advantages
PERSONAL LOAN
0ossibly higher monthly payments !wo monthly payments instead of one
Combination loans (such as an !"#!"#!$
-void 0&I 0otential tax advantages
0ossibly higher monthly payments !wo monthly payments instead of one
%ome e&uit' line of credit
8lexible access to funds 0otential tax advantages =ou only draw what you need =ou only pay interest on what you borrow
!ies up equity making it unavailable for other needs igher interest rate than a first mortgage !ies up equity making it unavailable for other needs
%ome e&uit' loan
0redictable fixed payments 0ossible tax advantages
igher interest rate than a first mortgage @annot pay down and withdraw additional funds
('pes of Personal Loans
2n the basis of mode of repayment, personal loans are of three types % installment loans, balloon loans and single payment loans. !nstallments loans are repaid in the form of monthly installments. he monthly installments carry both the principal and the interest elements of a loan amount. !n case of balloon loans, interest is paid at regular intervals and the principal amount is repaid at the end of the loan period. !n case of single payment loans, the entire principal as well as its interest is paid at the end of the loan period. )nstallment Loans* Installment loans are paid in regular amounts on a schedule, usually monthly, until the loan amount is repaid. !here are no closing fees associated with installment loans. Single Pa'ment Loans* In this loan, the entire amount of the loan is
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T.Y.BBI
PERSONAL LOAN
due at the end of the loan period. !his is probably the most familiar kind of loan to most people, where the entire sum of the loan is paid back at once, only with interest. +alloon Loan* Aimilar to single-payment loans, balloon loans sometimes allow more than one payment, but generally have most of the amount due at the end of the loan period. 2n the basis of mode of repayment, personal loans are of three types % installment loans, balloon loans and single payment loans. !nstallments loans are repaid in the form of monthly installments. he monthly installments carry both the principal and the interest elements of a loan amount. !n case of balloon loans, interest is paid at regular intervals and the principal amount is repaid at the end of the loan period. !n case of single payment loans, the entire principal as well as its interest is paid at the end of the loan period.
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T.Y.BBI
PERSONAL LOAN
H'(C (an" offer wide range of personal loan li"e:Iome renovation or ot er ome related e($enses. *arria!e e($enses.
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T.Y.BBI
PERSONAL LOAN
Travel e($enses. Education e($enses. Transferrin! an e(istin! loan from anot er ban%. Purc asin! consumer durables or e>ui$ment. Retirin! ot er debts. An" ot er $ersonal needs and contin!encies. 'le(ibilit" to c oose t e E*I dates , )st or )0t of ever" mont
F,ATUR,' 'le(ible $ersonal loan tenor of u$ to 1 "ears 4i.e. )-# )6# -;# /3#;-# ;6 and 30 mont s5. Personal loans available from Rs. 10#000 u$ to Rs.)1#00#000K. Eas" mont l" re$a"ment t rou! E>uated *ont l" Installments 4E*I5 wit
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T.Y.BBI
PERSONAL LOAN
$ost,dated c e>ues or direct debit to "our ban% account from ISBH India. Transfer of an e(istin! $ersonal loan from anot er ban% to ISBH India# at attractive interest rates. No collateralB!uarantor re>uirement. Eas" documentation# >uic% $rocessin! and disbursal. Iassle free $ersonal loan based on )- mont s credit cardBretail loan trac% record.
,ligi!ilit# Criteria:
). A$$licant can be salaried B self,em$lo"ed individuals and s ould be a resident Indians. -. Professional self,em$lo"ed individuals eli!ible for a $ersonal loan are &octors# H artered Accountants# Host Accountants# Hom$an" Secretaries# Arc itects# En!ineers and *ana!ement 8raduates. /. T e minimum a!e of t e A$$licant B 8uarantor s ould be -) "ears for salaried and self,em$lo"ed individuals. ;.T e ma(imum a!e of t e A$$licant B 8uarantor at loan maturit" s ould be 16 "ears for salaried individuals 430 "ears for Hentral 8ovt. em$lo"ees5 and 31 "ears for self,em$lo"ed individuals. 1. T e minimum "ears in continuous em$lo"ment B business s ould be ) "ear for salaried individuals and - "ears for self,em$lo"ed individuals. 3. T e minimum net annual income s ould be Rs.?1#000 $.a. 4includin! co, a$$licantCs or a$$licantCs income5 for salaried and self,em$lo"ed individuals.
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T.Y.BBI
PERSONAL LOAN
?. T e minimum sta" at current residence s ould be ) "ear for salaried and self,em$lo"ed individuals. Terms and conditions a$$l". All loans at t e sole discretion of T e Ion! Oon! and S an! ai Ban%in! Hor$oration Limited# India. Loans available for a$$licants and $ro$erties in and around t e limits of cities w ere ISBH as branc es and is sub=ect to c an!e from time to time. Do$ ments For salaried individ als ). Latest salar" sli$s s owin! statutor" deduction. OR -. 'orm )3 4declaration from em$lo"er !ivin! details of income and deduction# dul" si!ned b" an aut orised si!nator" of t e com$an". /. Latest ac%nowled!ed IT returns and ;. Ban% statement for t e last t ree mont s For self-emplo#ed individ al ). Hom$utation of income for last two "ear certified b" a HA. -. PBL and balance s eet for t e last two "ears certified b" a HA. /. Ho$" of ac%nowled!ed IT returns for t e last two "ear. ;. Ban% statement for t e last si( mont s. %hoto identit# .an#one+ ). Pass$ort -. P oto $an card /. &efense identit" card ;. :oters identit" card 1. &rivin! license 3. P oto ration card ?. 8overnment identit" card. %roof of residen$e .an#one+
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T.Y.BBI
PERSONAL LOAN
). Pass$ort -. Ration card /. Tele$ one bill ;. Electricit" bill 1. &rivin! license 3. Societ" out !oin! bill ?. :oter I& 6. Life insurance $olic" Note : Onl" $ass$ort can be used as bot $roof of individual identit" and $roof of residence address %roof of age .an#one+ ). Pass$ort -. &rivin! license /. :oter I& ;. Sc ool livin! certificate 1. P oto ration card
/ eas# wa#s to repa# personal loan
). lower E*I in t e first "ear • You can start b" re$a"in! an amount "ou can afford toda". • After a "ear# "ou can $a" a i! er E*I. -. Interest on utilise loan amount onl" # not on t e entire loan • Sim$l" estimate t e ma(imum loan amount "ou need. You can
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T.Y.BBI
PERSONAL LOAN
wit draw mone" as w en "ou need and interest will be c ar!e onl" on t e amount "ou wit draw. /. Last E*I waiver • T is re$a"ment o$tion !ives "ou t e benefit of !ettin! a last E*I refunded b" $a"in! a mar!inall" i! er interest rate 4available for loan of ;6 mont s tenor onl" an a$$licable if "ou re$a"ment is consistent t rou! out t e $eriod of t e loan. ;. Standard E*I re$a"ment • Your E*I for eac mont will be t e same for t e tenor of t e loan.
' rve# Report I ave done a customer surve" from )st Au!.# to /)st Au!.# -00? about $ersonal loan $rovided b" t e ban%s in t at surve" I ave as%ed a few >uestions to t e $eo$le and I ave !ot followin! resultsF Are "ou aware of t e $ersonal loanP
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T.Y.BBI
PERSONAL LOAN
#!! ! .! -! ,! ! A/ are 0na/ are A/ are 0na/ are
&o "ou $lan to $ursue $ersonal loan in futureP
3! .! 2! -! 1! ,! #! ! %ouse 4ducation Car 5ther %ouse 4ducation Car 5ther
7 ic ban% would "ou li%e to $refer for $ursuin! $ersonal loanP
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T.Y.BBI
PERSONAL LOAN
#!! ! .! -! ,! ! Private Public Foreign Private Public Foreign
7 at t"$e of interest rate would "ou $referP
3! .! 2! -! 1! ,! #! ! Fixed Floating Fixed Floating
Iow muc im$ortance as t e $ersonal loan assumeP
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T.Y.BBI
PERSONAL LOAN
3! .! 2! -! 1! ,! #! ! Lo/ 6oderate %igh Lo/ 6oderate %igh
&o "ou t in% t e $rocedure for $ersonal loan isQ
3! .! 2! -! 1! ,! #! ! Convenient Lenght' Convenient Lenght'
Fre0 entl# as"ed 0 estion
#7 8hat are the minimum and maximum loan amounts9
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T.Y.BBI
PERSONAL LOAN
=ou can avail of loans ranging from :s 1*,***B- to :s '5,**,***Bdepending on your eligibility, income and repayment capacity. ,7 8hat are the loan tenure options9 !he loan can be repaid over a period of '1 to 9* months. 17 Are there an' additional charges9 - processing fee of 17 of the loan amount is payable upfront. !his fee will be deducted from the disbursal amount payable to you. -7 %o/ much time /ill it ta:e for m' loan to be approved9 %oans are approved within 31 hours of submission of complete documentation. 27 Do ) have to provide an' securit'; collateral or guarantors9 >o security, collateral or guarantors are required for obtaining a 0ersonal %oan. .7 %o/ do ) repa' the loan9 =ou can repay the loan in Cquated &onthly Instalments /C&I<s4 through post-dated cheques favoring I@I@I #ank %imited, or if you have an I@I@I #ank account you can mandate us to directly debit the same.
37Can ) prepa' m' loan9 =es, you can prepay the entire loan outstanding anytime after '(* days of availing the same. 0repayment charges as applicable would be levied on the outstanding loan amount. >o part prepayment is allowed.
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T.Y.BBI
PERSONAL LOAN
7 Do ) need to open an account /ith )C)C) +an: for availing and"or servicing the loan9 We will encourage you to start a banking relationship with us so that we will be able to offer a host of other value added services, which are complementary to the loan, however opening an account with us is not mandatory. <7 %o/ do ) approach )C)C) +an: for a Personal Loan9 =ou can approach us in any of the following ways
• • • •
1D hour @ustomer @are @entre -pply Enline customer.careFicicibank.com =ou can Gust walk into any of any branches.
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