PL FAQ
A personal loan is a fixed amount of money borrowed at a fix rate and repaid over a fixed amount of time. You can get a personal loan from a bank, credit union or online lender. Personal loans can be of two types:
- Secured personal loans
- Unsecured personal loans
The most popular personal loans are unsecured loans, which do not require collateral. In that case, lenders look at factors like your credit history, credit score, income and sometimes employment to approve you.
Unsecured personal loans can be used for a wide variety of purposes, from paying for a wedding or making home improvements, to consolidating debt or paying medical bills.
EMI stands for Equated Monthly Installments. It is basically the amount that the lender will deduct from your bank account every month against the loan you take from them. The EMI includes some portion of the principal component of the loan and the interest component of the loan. In short, the total payable amount is divided into equal amount as per the number of months chosen as the repayment period.
It is not mandatory to have a guarantor to take a personal loan. Guarantor is only an 'additional security' in case the borrower defaults. Having a guarantor may increase your chances of getting a personal loan though.
Yes, your credit history and score may affect your chances of a successful application as personal loan is usually based on credit score and monthly net income.
Yes, personal loans can be taken for tax exemptions; however, it’s only under certain conditions. Usually, you can avail tax benefits if you utilize the funds for purposes like home buying, construction or repairs, education purpose or invest in any form of businesses. And if you opt to buy an asset like jewellery, shares, etc. you won't be able to avail tax benefits on the personal loans.
Personal loans are a good option if you:
- Want to consolidate high-interest debts.
- Need to finance a large expense.
- Have good to excellent credit.
- Can make monthly payments over the loan term.
Credit cards are a good option if you:
- Need to finance smaller expenses.
- Can pay off your balance in full each month.
- Qualify for a 0% promotional offer.
Yes, an 18% GST is applicable. However GST is not levied on repayment of loan or payment of interest on loan. GST is only levied on the processing charges and any other charges paid to the bank excluding the principal repayment and interest payment. The other charges include the Loan Processing Fees, Loan Prepayment Charges and other charges, if any.
Whenever you apply for a personal loan from a bank or NBFC they will charge you processing fee. It is an additional non-refundable charge that needs to be paid when applying for a personal loan. Processing fees are usually 1%-4% of the principal amount of the loan. If you need to borrow Rs.30,000 and there is a 2% fee, then make sure you borrow almost Rs. 30,600. The 2% fee would be deducted and you would end up with Rs.30,000 of loan proceeds.
Yes, you can club your income with your spouse to increase the loan amount and your eligibility but acceptance depends on Bank's policy.
Yes, you can always prepay your personal loan. However, it is important to note that many banks have a minimum lock-in-period on personal loans, before which you are not allowed to repay the loan. Some banks also charge some amount as a pre-closure charge for pre-closing your loan. It generally ranges from 3-5% when a customer decides to pre-pay the loan amount. Prepayment fees also depend upon the length of loan tenure completed at the time of pre-closure.
Anything above 740 is a good credit score, and you should also be able to easily qualify for a personal loan. You’ll likely get lower interest rates, too.
It is not mandatory to have a bank account with that bank to apply for a personal loan, however you may get a relationship discount if you have an bank account with the bank you are applying for a personal loan.
If you receive pension as a form of income, you may still be able to qualify for a personal loan. There are several public and private sector banks which offer personal loans to Pensioners. However there is a certain age capping.
The best way to apply for a personal loan is by using loan application tool at onebajaj.capital/loans/personal-loan/emi-calculator. The tool can be used to calculate and select the amount of loan you are eligible for, from multiple banks and NBFCS.
Steps to apply for Personal loan:
- Fill in your personal, financial, and employment details.
- Select the loan amount and tenure that you require, to get instant online approval.
- Submit the required document for verification.
- Receive the money in your bank account.
We here at Bajaj Capital handle your data with utmost security and make sure that data is shared to the concerned banks or financial institutions with proper data encryption methods. Also Bajaj Capital does not share data with third party other than customer approved financial institutions.