Which bank is best for personal loan?

In these days of digital lending, the loan approval process has become very quick. There are several banks offering instant personal loans and pre-approved loans based on your relationship with the bank in few seconds of your consent. Banks like HDFC, ICICI, offer an instant personal loan to its customers and have been customer's choice for personal loans.

Which bank gives personal loan for 15000 salary?

Most banks require a minimum salary of Rs. 20000 and above for personal loan eligibility. However, there are many NBFCs like Bajaj Finser, Tata Capital, and Hero Fincorp that can offer personal loan for Rs. 15000 salaried person.

How much cibil score required for personal loan?

Your credit score is an indicator of your credit worthiness. Normally, banks and NBFCs expect a credit score of Rs. 750 and above. However, with NBFCs, you can get a personal loan with credit scores from 650. The decision to approve or reject your loan application, however, lies with the discretion of the NBFC.

What is the maximum loan duration for the personal loan?

Generally, the tenure of a personal loan ranges from 12 months to 60 months. The tenure, loan amount, and the interest rate can vary based on borrower's income, credit needs, and more.

What documents required for personal loan?

The list of documents required for personal loan varies from salaried and self-employed persons. Salaried Photo proof (Passport, PAN Card, Aadhar Card, Driver's license) Address Proof Salary slip (last 3 months slip) Bank statements from 3-6 months IT Returns Form 16 Current employment certificate Self-employed Photo proof (Passport, PAN Card, Aadhar Card, Driver's license) Address Proof Salary slip (last 3 months slip) Proof of office ownership (Maintanene bill, ownership bill, Property documents) GST Certification Company registration license

How to cancel personal loan after disbursement?

Even after the financial institution has approved the loan, you can still cancel. You can contact the customer care before loan disbursal and inform that you do not need the loan. However, if the amount is credited to your account, you cannot cancel it anymore.

How to close personal loan early?

You can close the personal loan early. Preclosure helps in lowering the interest rates and reduce your debt burden. Some lenders do levy a penalty charge for preclosing the loan.

Which app is best for personal loan?

There are lot of Apps in the market is offering best services but Fincover is the one-stop shop which gives a one-window marketview of personal loan from multiple banks and NBFCs. You can compare loan quotes from multiple lenders and choose the best one after calculating the loan cost, factoring in processing fee, interest fee, and other charges.

How to transfer personal loan from one bank to another?

To transfer your personal loan from one bank to another, you will need to provide the details of your existing personal loan, such as the amount left, tenure, and rate of interest. The new financial company will check your repayment record in the last 12 months before approving the balance transfer.

Can we show personal loan in income tax?

No, you cannot show personal loan in Income tax. However, the interest paid on a personal loan can be claimed as deduction provided you have used the loan amount for home construction or home renovation.

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Eligibility Criteria for applying NBFCs Personal Loans @ Fincover

Eligibility Factor	Criteria
Age	Minimum: 21 years; Maximum: 54-58 years at loan maturity
Previous Loan Enquires	Maximum: 3 Enquiries
*FOIR !**	50% (NO over Obligation)
Income	Salaried: Minimum ₹25,000 to ₹2,00,000 per month Self-Employed: Stable income with proof (e.g., IT returns and GST)
Employment Status	Salaried: 1-2 years of employment, 6 months to 1 year in current job Self-Employed: 2-3 years in business
Credit Score	Preferred: 700 – 750 or higher Lower scores may be accepted at higher interest rates
Work Location	Typically urban or semi-urban areas are preferred
Existing Debt	Lower debt-to-income ratio (ideally less than 40-50%)
Documentation	Proof of identity (e.g., Aadhaar, PAN card) Proof of address (Communication Address) Proof of income (3 latest salary slips, Til date bank statements) Proof of employment or business (ID card)

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what is NBFCs personal loan?

An NBFC personal loan is a type of loan provided by Non-Banking Financial Companies (NBFCs) to individuals for personal use. Unlike traditional banks, NBFCs are financial institutions that offer a wide range of banking services but do not have a banking license.

Why Choose NBFCs for Personal Loans?

NBFCs are known for their customer-friendly approach and streamlined loan processes. Here are some reasons why you should consider an NBFC for your personal loan in 2024:

Flexible Eligibility Criteria: NBFCs often have more relaxed eligibility requirements compared to banks, making it easier for individuals with varying credit scores and employment statuses to secure a loan.
Quick Disbursal: One of the major advantages of NBFCs is the speedy approval and disbursal process. Many NBFCs can approve and disburse loans within 24 to 48 hours, making them ideal for urgent financial needs.
Higher Loan Amounts: NBFCs offer personal loans up to ₹40 lakh*, allowing you to finance larger expenses without hassle.
Customized Loan Options: NBFCs often provide personalized loan solutions, with options to choose the loan tenure, EMI amount, and repayment schedule that best suits your financial situation.

Uses of NBFC Personal Loans

Medical Emergencies: Quick access to funds for unexpected medical expenses.
Home Renovation: Financing home improvements or repairs.
Debt Consolidation: Combining multiple debts into a single, manageable payment.
Wedding Expenses: Covering the costs of a wedding or other large events.
Education: Funding education-related expenses for yourself or family members.
Travel: Financing a vacation or travel plans.

Documents required for NBFCs personal loan

Document Type	Details
Proof of Identity	Aadhaar card, PAN card, Passport, Voter ID, Driving License
Proof of Address	Utility bill (electricity, water, gas), Rent agreement, Passport, Aadhar card
Proof of Income	Salaried Employees: Salary slips (last 3-6 months), Bank statements (last 3-6 months), Form 16 Self-Employed Individuals: Income tax returns (last 2-3 years), Business financials (balance sheet, profit & loss account), Bank statements (last 6-12 months)
Proof of Employment/Business	Salaried Employees: Employment verification letter or appointment letter Self-Employed Individuals: Business registration documents, GST certificate, Business address proof
Photographs	Passport-sized photographs (typically 2-3)
Application Form	Completed loan application form from the NBFC
Credit Report (if required)	Some NBFCs may ask for a credit report or consent to access it

NBFCs Personal Loan Application Process

To apply for a personal loan online at Fincover, follow these steps,

Visit www.Fincover.com
Hover on “Loans” and Click on “NBFCs Personal Loans”-> “Apply for Personal loan”
Select the type of profession, Enter your Net Monthly Salary, Select the Loan amount required, Select the type of residence
Enter your Personal details such as Name, mail ID, Pincode, PAN, and state
Confirm your registration with an OTP
A lead will be created, and the customer care agents will contact you to seek documents and find offers from suitable banks or NBFCs. after which your loan will be processed.

Charges & Fees related to NBFCs Personal Loans

When applying for a personal loan from an NBFC, it’s important to be aware of the various charges that may apply. Here’s a summary of common charges associated with NBFC personal loans:

Charge/ Fee	Description
Processing Fee	A one-time fee charged for processing the loan application, usually 1-3% of the loan amount.
Interest Rate	The cost of borrowing, expressed as an annual percentage rate (APR). Rates can be fixed or floating.
Prepayment/Foreclosure Charges	Fees applicable if you repay the loan before the end of the tenure. Typically 1-3% of the outstanding principal.
Late Payment Fees	Penalties for delayed EMI payments. Charges vary based on the loan agreement.
Documentation Charges	Fees for processing and verifying the documents submitted with the loan application.
Stamp Duty	Applicable stamp duty charges, based on the loan amount and legal requirements.
Cheque Bounce Charges	Fees charged if your EMI payment is made through a bounced cheque.
Loan Rescheduling Charges	Fees for modifying the loan terms, such as extending the tenure or changing the EMI amount.
Verification Charges	Charges for verifying your personal, financial, and employment details.
Other Charges	Any additional charges specific to the NBFC or loan type, such as legal fees or service charges.

Comparing Banks vs. NBFCs for Personal Loans

When deciding between banks and Non-Banking Financial Companies (NBFCs) for a personal loan, it’s important to understand their differences and how each option might suit your needs. Here’s a comparison of banks and NBFCs based on various factors:

Factor	Banks	NBFCs
Regulation	Regulated by the Reserve Bank of India (RBI)	Also regulated by the RBI, but often have less stringent regulations compared to banks
Interest Rates	Generally lower due to higher competition and regulatory oversight	May offer competitive rates but can sometimes be higher than banks
Eligibility Criteria	Often stricter, requiring a good credit score and stable income	More flexible eligibility criteria, accommodating a wider range of credit profiles
Processing Time	Typically longer processing time with more documentation	Usually faster processing and disbursal, often within 24-48 hours
Loan Amount	Generally offer lower to moderate loan amounts	Can offer higher loan amounts, sometimes up to ₹40 lakh or more
Documentation	May require extensive documentation and verification	Typically requires less documentation, making the application process simpler
Customer Service	Well-established customer service with physical branches	Customer service may vary; some NBFCs offer robust online support
Flexibility	Less flexibility in terms of loan customization and repayment options	More flexible with customizable loan terms and repayment options
Fees and Charges	May have lower or standard fees, with clearly defined charges	May have varied fees and charges; it’s important to review the terms carefully
Repayment Options	Standard repayment schedules with less flexibility	Often offer more flexible repayment options and prepayment terms

FAQ

You can learn more from our asked questions

What is an NBFC?

An NBFC is a financial institution that provides banking and financial services but is not regulated by the Reserve Bank of India (RBI).

How do NBFC personal loans work?

NBFCs offer personal loans based on your income, creditworthiness, and other factors. You can use the loan for various purposes like debt consolidation, medical expenses, home renovation, or travel.

Can I prepay my NBFC personal loan?

Most NBFCs allow prepayment of personal loans, but they may charge a prepayment penalty.

Are interest rates for NBFC personal loans higher than bank personal loans?

Interest rates for NBFC personal loans can be competitive with bank personal loans. However, it's important to compare offers from both types of lenders to find the best deal.

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