FAQ Personal loan for salaried people


Personal loan for salaried people

How much loan amount can I expect?

Personal loans can vary from Rs. 50000 to Rs. 15,00,000 assessed on your income and repayment capacity, age and the lender. Applicant can include co-applicant and club income to get higher loan amount.

What is repayment process?

Lender will fix EMIs either through post dated cheques or through ECS with your bank.

Our EMI calculator will tell you exact amount of monthly EMIs

What are charges for changing mode of repayment of personal loan and how long does it take?
Institutions normally do not charge any amount and the process is completed in 25 working days. If repayment falls before or during this period, previous method will apply.

What is duration for repayment?

Institutions offer repayment schedule from 12 to 60 months depending on amount and applicant’s profile.

What happens to post dated cheques if I change my repayment mode to ECS?

The post dated cheques are sent to your registered mailing address within 15 days provided the revised payment mode is implemented.

Is it possible to make part prepayment or full payment of personal loan before tenure end?

Some institutions may allow it but usually part prepayment is not allowed and no changes are possible in schedule. Some institutions may levy penal charges for earlier repayment while others have no such restrictions. Institutions also vary in the form in which repayment is accepted. Bank draft may or may not be accepted. Some may insist on a cheque.

How long does it take for personal loan to be approved and disbursed?

Once all documents are submitted, a verification process is initiated and after this a committee meets to decide on approval and once sanctioned, amount is credited to your bank account within 5 days.

If I have salary account with the bank, will it be helpful?

Yes, you pay lower processing fees and rate of interest. Documents are processed quickly and repayment is simply through standing instructions letter to bank to debit EMI amount each month.

Is it necessary to provide security or guarantors for personal loan?

No. This is why it is known as personal loan.

What does de-pledge mean?

Securities are pledged for loans but once loan is repaid in full, the security rights are transferred back to original owner. The process is known as de-pledging.

What does guarantor mean?

If institution asks for guarantor it means the person who stands as guarantor promises to repay the loan amount if original applicant defaults on payments.

What does amortization mean?

It means the institution fixes repayments over a schedule.

What does pledge mean?

You furnish property documents or securities that will have a lien in favor of the bank until loan amount is fully repaid. Until that period you cannot deal in the property, sell it or transfer securities.

What does RTGS mean?

RTGS stands for Real Time Gross Settlement. This is a system that is used by institutions to transfer amount starting from Rs. 200,000 or more from one bank account to another bank account anywhere in India using the internet banking system. Charges apply. You receive immediate credit, in less than an hour. For amounts less than Rs. 200,000, National Electronic Fund transfer (NEFT) system is used by banks.

What is NEFT?

NEFT stands for National Electronic Funds Transfer system used by banks to transfer funds from the account of a account holder to any other branch in which he has an account or to the account of another beneficiary in the same bank at any branch or at any other bank.

What do the initials “SI” mean?

SI is short for Standing Instructions, usually given in the form of a letter or signed form, in which account holders authorize banks to debit their account with EMI amounts each month.

What does CIBIL mean?

CIBIL is short for Credit Information Bureau India Limited. This is an independent agency that provides detailed credit information on individual and companies and it provides information only to member banks and financial institutions as well as housing finance companies and credit card companies. Information is provided on a reciprocity basis or sharing basis. CiBIL is joint venture of Government of India and Reserve Bank of India with the goal of improving functionality and stability of the Indian financial system helping member institutions make objective and fast credit decisions.

How to change mode of repayment of loan?

You can do it in three ways. You must fill in the Swap Form and furnish required documents in order to effect the change. SWAP attracts charges.

Do I pay any other charges besides interest?

You have to pay upfront documentation and processing fee, insurance where required, and, if you detaulf in repayment then you pay penalty amount and penal interest.

What documents are required?

Carry along agreement number, self-attested identification proof should be at hand when you visit institution for services or queries.

Documents required?

  • Application form
  • Recent passport sized photograph
  • Income-proof for salaried applicants in the form of salary slip or form 16
  • Residence proof
  • Identity proof
  • Signature verification
  • Proof of date of birth
  • PAN card
  • Ownership/proof of residence
  • Employment stability proof for salaried applicants and bank statements

Post approval documents you may require to submit?

  • These are credit facility application form
  • Post dated cheques or ECS mandate (these may even be asked for along with application)


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