Tag: India

Personal loans are there to fulfil personal needs – not just any needs but financial needs which keep arising from time to time. The concept of personal loans in India was never given much importance before because of the rates of interest used to be so high that people could hardly afford to take them. As things have changed now and banks have lowered their interest rates to suit the public’s interest, more and more people make use of personal loans to fulfil all their financial requirements.

Personal loans – what are they used for?

Personal loans are used for different reasons. This depends entirely on the wants and needs of the person who is borrowing the money. Some people put it to some kind of productive use while others just use it to pay off previous dues or to celebrate lavish festivals. Aspiring business persons are usually the only ones who make use of personal loans for productive purposes. This basically means that they use if for a purposes which helps them to eventually earn it back along with something in return.

Even people who take personal loans to purchase consumer durable goods aren’t actually using the money for unproductive purposes. This is so because they invest in goods which bring them some degree of satisfaction. When it comes to utilizing the money for festivals and marriages, it comes under the category of unproductive use of funds. Besides these, there are many other purposes for which personal loans are used; all of which the bank is not really concerned about. What matters to the bank is whether the borrower is in a financial state to pay back the loan or not.

Personal loans – How can you apply for a personal loan?

Applying for a personal loan is quite easy. The best thing to do would be to first make sure of the loan schemes offered by your bank and also find out the terms and conditions which need to be adhered to in order to be eligible for the loan. This can be done in two ways: either personally or online. The personal approach of visiting a bank and finding out about the various deals available on personal loans is now in the background. Now, people prefer to do mostly everything online. Since banks have realised this too, they make things easier for the customers by providing details regarding their services through the internet.

Another way, in which you can look into the various options and deals currently available from a particular bank or financial institution, is by conveniently checking online for detailed information. Once you are sure of what you want you can apply for the personal loan directly to the bank. This will be much easier once you know the entire procedure and documents required (from the information you seek online).

State Bank of India is the foremost and most trusted banks in India. SBI along with its combine branches has a distribution more than 16,000 branches, which is the largest in any network of banking. BNP Paribas, Euro Zones leading Bank and is the oldest foreign bank having an existence in India. BNP Paribas Assurance has a chief presence in Latin America, Europe and Asia and is among the top15 insurance company in Europe. The company has other joint venture in Asia in countries like Vietnam, Taiwan, Thailand and South Korea.

SBI Personal Loan is the best options for individuals who require the urgent money. SBI also provides the attractive rates and easy flexible repayment options. Below are the various features, eligibility criteria and documentation required for the loan approval.

Features: People can avail SBI Personal Loan for various different purposes or events in life such as domestic or foreign travel, medical emergencies, marriage, education, paying the bills, consolidates the debt, dream vacations, small business establishment and home renovation. The bank provides the minimum loan amount up to Rs. 24,000 in metro cities and Rs. 10,000 in semi urban or rural cities. The maximum amount is 12 times net monthly salary for pensioners and salaried person and the maximum loan amount is up to 10 Lacs.

There is no need to give any security or collateral to the person for availing Personal loan. The maximum repayment period is up to 4 years.

Eligibility: The salaried person who has two years experience from any reputed company is eligible for SBI Personal Loan. The self-employed individual with 2 years of experience is eligible for the personal loan.

Charges: The banks charge the processing fee from 2 to 3 percent of the loan amount. The banks also charge the prepayment charges up to 1% of the loan amount if the borrower repays the loan before 6 months of the loan period.

Documents Required: The documents required by the banks for salaried individual are Application form with recent two passport size photographs, latest salary slip, residence proof, ID proof and bank statement for last three months.

Self employed individual have to give the documents like the application form with 2 photographs, Income Tax Returns (ITR) for last two years, proof of Residence, identity proof and bank statement for last six months.

People can get the instant approval for SBI Personal Loan if they are eligible and provide all the required documentation to the bank.

Sarva U.P.Gramin Bank, sponsored by Punjab National Bank one of the leading commercial Bank of India…

Sarva U.P.Gramin Bank, sponsored by Punjab National Bank one of the leading commercial Bank of India, came into existence by amalgamation of 4 Regional Rural Banks ( Uttar Pradesh Gramin Bank Meerut, Kisan Gramin Bank Budaun,Rani Laxmi Bai Gramin bank Jhansi AND Davi Patan Gramin bank Gonda). The Bank has its Head Office in Meerut.

Purpose: To meet urgent requirements of personal nature as education, marriage of children family functions, Medical Expenses etc. this loan scheme can be utilized.

Eligibility: Permanent employees of institutions including School/Collage PSU’s maintaining SF/CA at the bank in which salary is being credited and Confirmed Govt. employees of Central/State Govt./Teachers are eligible for this loan. The applicant should have a minimum Net monthly Income of Rs.5000/-p.m. at Semi Urban & rural centers ,Rs.7000/-p.m. at urban centers. Carry home pay should not be less than 50% of gross salary.

Quantum of Loan: Term Loan of Rs.10,000/- to Rs.3,00,000/- or 10 times of net monthly Income whichever is lower is granted as personal loan.

Margin: There is no margin for this loan.

Rate of Interest: The rate of interest is 13% per annum. The interest is calculated on a quarterly compounding basis.

Repayment: The repayment has to be done within 48 equated monthly installments.

Security: Two guarantees acceptable to the bank are

Government of India through a notification dated 12th January 2006 amalgamated the four Regional Rur…

Government of India through a notification dated 12th January 2006 amalgamated the four Regional Rural Banks sponsored by the United Bank of India in the state of Assam to form Assam Gramin Vikash Bank (AGVB).

The erstwhile RRBs amalgamated were Pragjyotish Gaonlia Bank (Established on 06-07-1976), Lakhimi Gaonlia Bank (Established on 29-07-1980), Cachar Gramin Bank (Established on 31-03-1981) and Subansiri Gaonlia Bank (Established on 30-03-1982).

Thus Assam Gramin Vikash Bank (AGVB) came into existence from 12th January 2006 covering the areas of operation of the pre-amalgamated RRBs. The bank has its Head Office at Guwahati.

Purpose: To meet the lawful personal expenses an individual this personal loan can be availed.

Eligibility: The following categories of people are eligible for the loan:

(i)Salaried permanent employees of Government / Public Sector/Corporate Organizations with check off arrangement are eligible for the loan.

(ii)Professional and Self Employed Persons like Architects, Engineers, Doctors, Lawyers, etc. with annual income not less than Rs.2.00 lakh are also eligible for this personal loan scheme.

Loan amount:

Salaried Persons :

i) Rs.60000/- or 6 months gross salary whichever is lower

ii) Where wife is a co-borrower Rs.1.00 lakh or 10 months gross salary

iii) Where wife is a co-borrower and working lady Rs.1.20 lakh or 12 month gross salary.

You can use the financial support banks lend for almost anything from international travel to a medical emergency. So, there are several kinds of resources that you may have that come in handy while taking the loan for generic financial requirements. One of the resources is loan. However, it is important to know the purpose of taking a loan. You need to compare factors like interest rates, eligibility criteria, processing fees, prepayment penalties, etc. before applying for any one of these emergency loans. Many of the loans are easily available, which is basically divided into two types: secured and unsecured loans. The most common and popular secured loan is Gold Loan.

Gold Loan:

This type of loan against gold uses it as the collateral deposit, which needs to be kept with the bank in order to obtain a loan. This loan has lower interest rates but the risks are extremely high. In case a default occurs, you could risk the loss of ownership of the gold you have. However, the gold loan is the most favorable emergency loan in India.
As most Indians traditionally and culturally keep a lot of gold for various occasions like wedding gifts and investments. An emergency loan can be processed as the loan against idle gold. Most leading banks like provide gold loans for excellent interest rates that range between 12 – 16%. You can use gold to secure an emergency loan based on (Loan to value) LTV ratio. This may be higher than the other type of loans; however this proves to be very beneficial when a high amount of loan is needed.

Personal Loan:
In the personal loan, you need not pledge any security or collateral. Personal loans are easy to handle, fast and hassle free, thus proving to be an ideal option for emergency financial requirements. Since it doesnt require any collateral, one can get a personal loan as easily as clicking a button.

Compared to gold loan, personal loan has higher interest rate. Though, most banks offer competitive rate between 14 to 25%. However, it is processed much faster. If you provide all the documents necessary, organizations like HDFC bank sanction and credit the loan amount in your account within 24 hours. The most important thing it can do is to help you escape the crisis or the need. So, whether you have time to opt for gold loan or have a good credit score for the personal loan, these financial products are designed to evade the financial need.