A loan used to cover a number of personal expenses may be known as a Personal Loan. A Personal Loan happens to be an unsecured loan, by way of which you can borrow money for personal expenses depending on interest rates, processing fees, the amount you seek, and the repayment terms.
This loan, also known as a consumer loan can be used as a multipurpose borrowing to meet immediate requirements. Such a loan can be taken for home renovation, car repair, vacation expenses, marriage expenditure, or any other immediate expense the lender would be willing to approve depending on your credit score, repayment history, income, and other such important criterion. Borrowed as an initial lump sum, you pay a lower interest rate along with the principal sum over a predetermined period.
Make sure to plan your finances and budget before applying for a personal loan.
For a Personal loan, you are required to furnish one or more document to prove your age. Following are the documents generally required by most lending i institutions.
To prove your residency, or resident status, you may be required to furnish one or more the following documents.
You are required to furnish documents related to your income depending on your occupation. This proof of income document depends on the lender.
(If you are salaried person, Salary Slips are a proof of income. Depending on institution to institution, you may require to furnish minimum 2 months Salary Slips as proof.)
(Generally, institutions require Salaried Bank Account Statements of previous 3 months for loan approval.)
(Some institutions require a person to furnish an Income Statement as proof of income depending on the nature of your occupation.)
Approval of your loan requires that a tax paid document be furnished. This may differ from person to person and lender to lender.
(A Salary TDS Certificate or Form 16 certifies that you are a salaried individual whose employer deducts tax from his employee's salary. This document acknowledges that tax has been deducted, and deposited with the Income Tax department.)
(This document proves that you have paid your income tax. Some lenders insist on latest income tax returns..)
Online, there are many lenders, and the documents required differ from lender to lender. These mandatory documents along with a statutory number of photographs need to be furnished along with your personal loan application for approval. Once approved, a duly signed agreement copy will be sent to you.You then need to provide a Standing Instruction Request / ECS Mandate Form, and security deposit cheques to complete the formality. ECS stands for Electronic Clearance Service. Likewise, an ECS Mandate gives the authority to the clearinghouse to debit your monthly EMI from your bank account, and credit the same into your loan account, or lenders account on a fixed predetermined date.
Offers you various options to choose from, for a Personal Loan Balance Transfer, which allows you to take advantage of better and lower interest rates, and better loan periods of tenures. A personal loan balance transfer offers you the opportunity to transfer the total outstanding amount of your personal loan from your present lender, to a new lender of your choice who offers you better terms and conditions, and facilities to profit from such a process.
A Personal Loan Balance transfer does not require any security or collateral when you transfer a personal loan from one bank to another. Your current lender will charge you a foreclosure or prepayment charge stipulated in your loan agreement. In the course of the transfer, your new lender may charge processing fees and stamp duty on your loan agreement, if applicable.
If you are dissatisfied with your current lender, and your relationship does not seem right, you can choose from a host of options offered by RA Capital. However, before choosing the right alternative, evaluate the offerings based on not only interest rates, and loan tenures, but also look for hidden costs such as processing fees, and other charges that increase the cost of your personal loan. Before taking a balance transfer decision, also consider the lender’s reputation and compatibility with your service expectations.
RA Capital offers you a range of lenders who offer you a loan balance transfer facility, and the eligibility criteria may vary accordingly. However, the basic criteria such as your repayment capacity or creditworthiness, etc., are the same, some of which are discussed in brief below. You may use RA Capitals Personal Loan Eligibility Calculator to determine your eligibility for a loan balance transfer.
A Lender carries out credit-worthiness assessments on the basis of the documents submitted on the application. The Personal Loan Balance Transfer process will only take place after such verification. Here are some common documents that you may be required to produce in case you opt for a Personal Loan Balance Transfer.
When you choose to transfer the outstanding balance of your existing personal loan, you will have to pay a few charges depending on the bank or NBFC you’ve taken the loan from. Your current lender will charge you an amount when you transfer a personal loan to another bank, and the new lender will charge you another amount for processing your personal loan balance transfer. The charges other than personal loan balance transfer interest rate chargeable in brief are as follows.