Basics of a Personal Loan
Transcript of Basics of a Personal Loan
8/8/2019 Basics of a Personal Loan
http://slidepdf.com/reader/full/basics-of-a-personal-loan 1/14
A PROJECT ON PERSONAL A PROJECT ON PERSONAL
LOANSLOANS
B.COM BANK MANAGEMENTB.COM BANK MANAGEMENT
8/8/2019 Basics of a Personal Loan
http://slidepdf.com/reader/full/basics-of-a-personal-loan 2/14
Basics of a Personal LoanBasics of a Personal Loan
WH AT IS A PERSONAL LOAN?WH AT IS A PERSONAL LOAN?
WHO IS ELIGIBLE FOR AWHO IS ELIGIBLE FOR APERSONAL LOAN?PERSONAL LOAN?
WH AT KINDS OF INTRESTWH AT KINDS OF INTRESTRATES ARE OFFERED ONRATES ARE OFFERED ONPERSONAL LOANS?PERSONAL LOANS?
WH AT IS THE AVERAGEWH AT IS THE AVERAGEINTREST RATE FORINTREST RATE FORPERSONAL LOANS?PERSONAL LOANS?
WH AT DOCUMENTS AREWH AT DOCUMENTS AREREQURIED FOR A PERSONALREQURIED FOR A PERSONALLOAN?LOAN?
HOW
IS A PERSONAL LOANH
OW
IS A PERSONAL LOANREPAID?IS PREPAYMENT OF AREPAID?IS PREPAYMENT OF ALOAN POSSIBLE?LOAN POSSIBLE?
HOW IS A PERSONAL LOANHOW IS A PERSONAL LOANDIFFERENT FROM CREDITDIFFERENT FROM CREDIT
CARD CASH ADVANCES ANDCARD CASH ADVANCES ANDLOAN AGAINST PROPERTY?LOAN AGAINST PROPERTY?
8/8/2019 Basics of a Personal Loan
http://slidepdf.com/reader/full/basics-of-a-personal-loan 3/14
PERSONAL LOAN INTEREST RATE TABLEPERSONAL LOAN INTEREST RATE TABLE
Bank NameBank NameInterestInterest
TypeType
Interest Rates for various loan amountInterest Rates for various loan amount
1 lakh1 lakh 22--5 lakhs5 lakhs 66--10 lakhs10 lakhs >10 lakhs>10 lakhs
Citi BankCiti Bank FixedFixed 16.016.0--22.022.0 16.016.0--22.022.0 16.016.0--22.022.0 16.016.0--22.022.0
FullertonFullerton FloatingFloating 18.018.0 18.018.0 NANA NANA
HDFC BankHDFC Bank FloatingFloating 15.15.55--22.022.0 15.515.5--22.022.0 15.515.5--22.022.0 15.515.5--22.022.0
Barclays Finance PersonalBarclays Finance PersonalLoansLoans
FixedFixed 18.018.0--50.050.0 18.018.0--50.050.0 18.018.0--50.050.0 18.018.0--50.050.0
ICICI BankICICI Bank FloatingFloating 14.014.0--18.018.0 14.014.0--18.018.0 14.014.0--18.018.0 14.014.0--18.018.0
Axis Bank Axis Bank FixedFixed 14.014.0--21.021.0 14.014.0--21.021.0 14.014.0--21.021.0 NANA
SBISBI FloatingFloating 14.014.0 14.014.0 14.014.0 NANA
Citi FinancialCiti Financial FixedFixed 21.021.0 21.021.0 2121.0.0 NANA
ABN Amro ABN Amro FixedFixed 16.016.0--23.023.0 16.016.0--23.023.0 16.016.0--23.023.0 16.016.0--23.023.0
IDBI BankIDBI Bank FixedFixed 16.016.0--20.020.0 NANA NANA NANA
Reliance Consumer FinanceReliance Consumer Finance FixedFixed NANA 16.016.0--23.023.0 16.016.0--23.023.0 16.016.0--23.023.0
Union Bank of IndiaUnion Bank of India FixedFixed 14.7514.75 NANA NANA NANA
8/8/2019 Basics of a Personal Loan
http://slidepdf.com/reader/full/basics-of-a-personal-loan 4/14
PERSONAL LOAN INTEREST RATE TABLEPERSONAL LOAN INTEREST RATE TABLE
Bank NameBank NameIntereIntere
ststTypeType
Interest Rates for various loan amountInterest Rates for various loan amount
1 lakh1 lakh 22--5 lakhs5 lakhs 66--10 lakhs10 lakhs >10 lakhs>10 lakhs
Andhra Bank Andhra Bank FloatingFloating 15.015.0 NANA NANA NANA
Canara BankCanara Bank CanCanBudget Budget
FixedFixed 14.514.5 NANA NANA NANA
Bank of BarodaBank of Baroda FloatingFloating 14.514.5 NANA NANA NANA
Bank of MaharashtraBank of Maharashtra FixedFixed 14.014.0 NANA NANA NANADena BankDena Bank FixedFixed 15.015.0 NANA NANA NANA
Oriental Bank of Oriental Bank of CommerceCommerce
FloatingFloating 13.013.0 NANA NANA NANA
Federal BankFederal Bank FixedFixed 16.2516.25 NANA NANA NANA
UCO BankUCO Bank FloatingFloating 13.2513.25 NANA NANA NANA
Vijaya Bank Vijaya Bank FloatingFloating 13.7513.75 NANA NANA NANA
Indian BankIndian Bank FixedFixed 14.514.5 NANA NANA NANA
Bank of IndiaBank of India FloatingFloating 11.011.0--12.7512.75 NANA NANA NANA
Karnataka BankKarnataka Bank FixedFixed 13.2513.25 NANA NANA NANA
8/8/2019 Basics of a Personal Loan
http://slidepdf.com/reader/full/basics-of-a-personal-loan 5/14
PERSONAL LOAN INTEREST RATE TABLEPERSONAL LOAN INTEREST RATE TABLE
Bank NameBank NameIntereIntere
ststTypeType
Interest Rates for various loan amountInterest Rates for various loan amount
1 lakh1 lakh 22--5 lakhs5 lakhs 66--10 lakhs10 lakhs >10>10lakhslakhs
Indian Overseas BankIndian Overseas Bank FixedFixed 12.512.5 NANA NANA NANA
State Bank of PatialaState Bank of Patiala FloatingFloating 14.014.0--14.514.5 14.014.0--14.514.5 14.014.0--14.514.5 NANA
Corporation BankCorporation Bank FloatingFloating 14.514.5 NANA NANA NANA
J & K BankJ & K Bank FixedFixed 13.2513.25--14.2514.25 13.2513.25--
14.2514.25
13.2513.25--
14.2514.25
NANA
Punjab & Sind BankPunjab & Sind Bank FloatingFloating 13.513.5 NANA NANA NANA
State Bank of Bikaner &State Bank of Bikaner &JaipurJaipur
FloatingFloating 13.2513.25 13.2513.25 NANA NANA
State Bank of State Bank of
HyderabadHyderabad
FloatingFloating 13.7513.75--14.7514.75 NANA NANA NANA
State Bank of IndoreState Bank of Indore FloatingFloating 15.015.0 15.015.0 NANA NANA
State Bank of State Bank of TravancoreTravancore
FixedFixed 14.2514.25 NANA NANA NANA
United Bank of IndiaUnited Bank of India FixedFixed 14.2514.25 NANA NANA NANA
Karur Vysya BankKarur Vysya Bank FixedFixed 12.7512.75 NANA NANA NANA
8/8/2019 Basics of a Personal Loan
http://slidepdf.com/reader/full/basics-of-a-personal-loan 6/14
PERSONAL LOAN INTEREST RATE TABLEPERSONAL LOAN INTEREST RATE TABLE
Bank NameBank NameIntereIntere
ststTypeType
Interest Rates for various loan amountInterest Rates for various loan amount1 lakh1 lakh 22--5 lakhs5 lakhs 66--1010
lakhslakhs>10 lakhs>10 lakhs
Tamilnad MercantileTamilnad MercantileBank LtdBank Ltd
FloatingFloating 15.015.0--17.517.5 NANA NANA NANA
Apna Sahakari Bank Apna Sahakari Bank FixedFixed 14.014.0 NANA NANA NANA
South Indian BankSouth Indian Bank FloatingFloating 15.2515.25 NANA NANA NANA
Saraswat BankSaraswat Bank FixedFixed 15.015.0 NANA NANA NANA
Tata Capital Ltd.Tata Capital Ltd. FixedFixed 14.014.0--20.020.0 14.014.0--20.020.0 14.014.0--20.020.0
14.014.0--20.020.0
Kotak BankKotak Bank FloatingFloating NANA 15.515.5--21.021.0 15.515.5--21.021.0
15.515.5--21.021.0
Standard CharteredStandard CharteredBankBank
FixedFixed 16.016.0--16.516.5 16.016.0--16.516.5 16.016.0--16.516.5
16.016.0--16.516.5
8/8/2019 Basics of a Personal Loan
http://slidepdf.com/reader/full/basics-of-a-personal-loan 7/14
How is a personal loan different from credit card cash advances and loan
against property?
Personal Loan Credit card Cash Advance Loan Against Property
Unsecured loan Unsecured Loan Secured Loan
Between 15% and 25% For rollover credit (amountallowed to be rolled over andpaid later) interest can go upto 35%
Between 12% and15.75%
EMIs are higher becauseof high interest rate
Minimum monthly paymentscan be made. However, theinterest keeps on adding up
Since the rate of interestis lower, frequently LAPEquated Monthly
Installments (EMI) turnsout cheaper
Maximum loan eligibilityis determined primarilyby an individual's income
Maximum amount isdetermined primarily by thecredit limit on the card
Maximum loan eligibilityis determined primarilyby the value of theproperty and income
Tenure between 1 to 5years
Can be paid off monthly Tenure maximum of 15years
These are some basics that you should know when obtaining a personal loan. These days, securing a loan is easy.Repayment is the tough bit. When you don't repay on time, the recovery agent may come knocking at your door.When getting a personal loan it is important to ask yourself µWill I be able to pay it off?Some things which can help you pay back your personal loans are:Pay off your credit cards: Try to pay off your credit cards as soon as possible, since credit card debts inadvertentlyhamper loan payments.Budget your spending: Once you have taken a loan, ensure that you budget your spending, so that if in any unforeseenycircumstance you cannot make a monthly payment, your savings will help you out.Personal loans if not utilized and repaid properly, can become a curse in disguise. Make your decisions prudently to ensure a
safe financial future
8/8/2019 Basics of a Personal Loan
http://slidepdf.com/reader/full/basics-of-a-personal-loan 8/14
FEATURES OF PERSONAL LOANFEATURES OF PERSONAL LOAN Loans for salaried & self Loans for salaried & self--employed individualsemployed individuals
Special loans for doctors, chartered accountants, engineers, architects,Special loans for doctors, chartered accountants, engineers, architects,company secretaries, and ICW AI graduatescompany secretaries, and ICW AI graduates
Loans are available from Rs. 20000 to Rs. 20 lakh for any purposeLoans are available from Rs. 20000 to Rs. 20 lakh for any purposedepending on your requirement depending on your requirement
Flexible repayment options, ranging from 12 to 60 monthsFlexible repayment options, ranging from 12 to 60 months
HassleHassle--free loansfree loans -- No security/guarantor/collateral requiredNo security/guarantor/collateral required
Repay with easy EMIRepay with easy EMI
Balance transfer facility to retire any higher cost debt Balance transfer facility to retire any higher cost debt
Loans available against repayment track record of any existing auto,Loans available against repayment track record of any existing auto,personal or home loanpersonal or home loan
Loans available against proof of life insurance policy premium receiptsLoans available against proof of life insurance policy premium receipts
Simple procedure, minimal documentation, & quick approvalSimple procedure, minimal documentation, & quick approval
8/8/2019 Basics of a Personal Loan
http://slidepdf.com/reader/full/basics-of-a-personal-loan 9/14
ADVANTAGES OF PERSONAL LOAN ADVANTAGES OF PERSONAL LOAN
The main advantage is the flexibility of using theThe main advantage is the flexibility of using themoney for whatever purpose you intend.money for whatever purpose you intend.
Secondly personal loans are usually unsecuredSecondly personal loans are usually unsecured
which means you dont have to offer security orwhich means you dont have to offer security orobtain a guarantor.obtain a guarantor.
Finally there is less paperwork involved since theFinally there is less paperwork involved since the
bank doesnt have to verify assets used tobank doesnt have to verify assets used tosecure the loan which also means that thesesecure the loan which also means that theseloans are approved more quickly.loans are approved more quickly.
8/8/2019 Basics of a Personal Loan
http://slidepdf.com/reader/full/basics-of-a-personal-loan 10/14
DISADVANTAGES OF A PERSONALDISADVANTAGES OF A PERSONALLOANLOAN
The disadvantage is that these loans areThe disadvantage is that these loans arerelatively difficult to obtainrelatively difficult to obtain
The qualifying criteria are stricter than forThe qualifying criteria are stricter than forother loans.other loans.
The rate of interest is also higher than forThe rate of interest is also higher than formost other loans and may be as high asmost other loans and may be as high as25 per cent particularly if your credit 25 per cent particularly if your credit profile is weak.profile is weak.
Keep this in mind while obtaining one from anyof the lendin a encies.
8/8/2019 Basics of a Personal Loan
http://slidepdf.com/reader/full/basics-of-a-personal-loan 11/14
HOW TO APPLY FOR A PERSONAL LOAN
So, here goes a step-by-step break-up of the persona
loan application process:
Step 1: Enquiry with a financier:
Step 2: Documents Collection
Step 3: Field Investigation Agency RepresentativeVisit
Step 4: Loan approved
8/8/2019 Basics of a Personal Loan
http://slidepdf.com/reader/full/basics-of-a-personal-loan 12/14
Can I pre-pay my personal loan?
1) Yes, you can pre-pay your personal loan, but you will have to paya pre-payment penalty.
2) Pre-payment penalties on personal loans are generally quitesteep, with some banks charging as much as 5%.
3)Some banks allow you to pre-pay a portion of your loanoutstanding (usually 25%) without any pre-payment penalties.
Read your loan agreement carefully about the pre-payment conditions.
4)Banks allow pre-payment only after a specific period from the dateof loan disbursal, which could be 6 months to 12 months.
8/8/2019 Basics of a Personal Loan
http://slidepdf.com/reader/full/basics-of-a-personal-loan 13/14
Think before you sign on thedotted line...
Things to keep in mind before you sign as a guarantor forsomeone's loan
Is the person worthy of your trust? Is he or she capable of
repaying the loan? These questions should cross your mindbefore you become a guarantor to someone's home, car,
education or personal loan.
So before you sign on the dotted line, take a
note of all this.
8/8/2019 Basics of a Personal Loan
http://slidepdf.com/reader/full/basics-of-a-personal-loan 14/14
A project by A project by
D.K.H ARISH(M0871)D.K.H ARISH(M0871)
M.PRABHU(M0840)M.PRABHU(M0840)
K.SARAVANAN(M0882)K.SARAVANAN(M0882)
R.SUDH ARSAN(M0872)R.SUDH ARSAN(M0872)
K.R.VENKATESH K.R.VENKATESH
(M0861)(M0861)
RAMAKRISH
NAMISSION VIVEKANANDACOLLEGE
(EVENING)