A personal loan is a type of debt which
is made for personal, family, or household use, and which is neither a business
loan nor a long-term mortgage loan.
•Secured
Loan
•Unsecured
Loan
Range: $100 – $100000
Sources
of loans
Personal Loan Process
Documentation
Loan Contract
Loan Repayment Schedule
Maturity
Collateral
- Commercial banks
- Savings institutions
- Finance companies
- Credit unions
- Some automobile manufacturers
- Friends
- Family members
Personal Loan Process
Documentation
Loan Contract
Loan Repayment Schedule
Maturity
Collateral
Documents
required - Self Employed
2 photos + ID proof
PAN mandatory
Residential proof
Ownership
Utility bill
1 year banking
3 years ITR + Business proof (tin/service tax, company
profile)
Documents
required - Salaried
2 photos
ID proof
PAN mandatory
Residential proof
Ownership
Utility bill
6 months banking
3 month salary slip or 2 years form- 16
Loan
Contract
“A
contract that specifies the terms of a loan, as agreed to by the borrower and
the lender”
Know Your Customer (KYC)
Amount of the loan
Interest rate
Tenure
Loan
Repayment Schedule
Amount
EMI – Estimated Monthly Installment/Equated Monthly
Installment
EMI = (P * R/12) * [ (1+R/12)^N] / [ (1+R/12)^N-1],
Where;
P = Principal (loan amount);
R = Annual Interest Rate;
N = No. of Monthly Instalments
P = Principal (loan amount);
R = Annual Interest Rate;
N = No. of Monthly Instalments
Number of Installments
Interest: Rate and Type
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