What is Personal Loan And Process?

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

• 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

Number of Installments

Interest: Rate and Type