InvestorQ : how can I get loan. what procedure is
Mohit Singh made post

how can I get loan. what procedure is

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Pratik vyas answered.
2 years ago
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Your question is incomplete, so I don’t know what kind of loan you are enquiring about. However, personal loans are most common these days and can be taken for a variety of reasons, so I’ll give you information about the same.

A personal loan is an unsecured loan that is taken by an individual from a bank or a non-banking financial company (NBFC) to meet any of their personal needs. An unsecured loan is one which doesn’t require any collateral. Thus, unlike a home or a car loan, a personal loan is not secured against any asset. This means that you don’t have to give any collateral to the lender (bank/NBFC) and in case of a default, the lender cannot auction anything you own.

As the lender doesn’t hold any collateral against the amount it loans to you, the interest rates on personal loans are higher than those on home, car or gold loans because of the greater perceived risk when sanctioning them.

The minimum loan amount that banks/non-banking financial companies (NBFCs) lend to a borrower is Rs. 30,000. Please note, this amount can vary across NBFCs and banks so do your research before applying for a loan.

The criteria on which a personal loan can be given are: income level, credit and employment history, repayment capacity, etc.

For a personal loan, a borrower must have some regular source of income. You don’t necessarily need to be a salaried individual. Even a self-employed individual or a freelancer can avail of a personal loan.

Eligibility criteria for a personal loan:

- The borrower should be in the age bracket of 21-58 years - A salaried professional should have been at the current job for at least six months and must hold an experience of minimum two years. - In case of a self-employed person, the minimum limit of work experience and the duration of business should be at least 2 or 3 years, or as per the lending institution’s protocols. - The individual’s minimum income limit should be Rs. 20,000.

As is the case with all other loans, your eligibility for a personal loan, too, is affected by your credit history, length of service in your workplace, etc. While various lenders have their own eligibility criteria, the most important one is that of your credit score.

Credit score is a score, between 300 and 900, that is assigned to you based on your payments towards your credit cards or loans. It is a way to identify your credit worthiness and helps banks or NBFCs decide whether they should lend to you or not. Although it is subjective, but a score above 800 is good or safe to lend to.

Procedure for applying for a personal loan: You can apply for a loan in numerous ways. You can apply online, offline (by visiting the bank or NBFC), or via email or phone banking services.

If you meet the bank’s eligibility criteria, then you will have to submit a duly-filled application form You will have to submit certain personal documents (PAN, Aadhaar), income certificates, tax returns, credit reports, etc.

After the bank receives your form, it will crosscheck all your information, your identity and might even verify your address and check your track record with your office. Based on your income tax receipts and your repayment capability, the bank will decide whether to give you a loan or not. This is usually a quick process and you will know within a few days how much loan is being approved, and for how long.

Hope you get your loan approved soon. All the best!

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IQModerator answered.
2 years ago
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It is advised to ask question about a specific product or purpose to get better responses.
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2 years ago
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Procedure will depend on the type of loan you are seeking. Basic documentation for all loans will entitle you to share your Personal, KYC and Financial Details. You credit score will be checked.

Depending on the type of loan, say auto loan; you will need to provide the price of the vehicle as shared by the dealer etc. to be given to gauge your eligibility.

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