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Posted on Monday January 13th, 2020

Providing a loan or loaning is an entrusting capital which is carry from one person to another. A loan has three elements the principal or the borrowed amount, rate of interest and tenure or period for which the loan is availed. It is one of the major economic properties of any bank or NBFC that is a Non-Banking Financial Company proposes.

There are several types of loans and the familiar categories of loans that people serve as:

• Home Loan
• Car Loan
• Education Loan
• Personal Loan
• Business Loan
• Gold Loan

These Junctures a bank mainly consider to Applying for any of these Loans

Bringing a loan is a huge economic judgment that compels you to create conscious options. Here are some options:

• Credit Score: When you will apply for loan, you have to review your credit history. The history of Credit score is a certificate of your last borrowings, if any, and reimbursement certificate. This will illustrate if you are accountable for repaying or if you have declined payments in history. A credit score of (750 and above) is great.

• The Interest Rate: Check the loan interest ratio before you apply for one. Loans that compel collateral security commonly have lower interest rates than loans that don’t require.

• The Processing Fee And Other Charges: When you try to apply for a loan, and if you lose your payment deadlines for your loan, you will be liable to spend a processing and punishment fee equally. These payments and taxes rely on the loan proportion.

• Research To Get The Best Rate For Your Loan: Research and compare from different banks & NBFCs to get the best interest rates, EMI, tenure, and other charges that best suit you.

Eligibility to have a Loan

• Salaried and Self-Employed persons can Apply For a Loan.

• The Age limit is from 23 years to 58 years for salaried and 28 years to 65 years for a self-employed person.

• The income should be Rs.25, 000 and yearly for salaried and minimum turnover of Rs.40 lakhs for a self-employed person.

• The CIBIL Score should be Above 750 for both.

Documents for Loan Application

For both salaried and self-employed persons, these documents are mandated to apply for a loan

• Application form with photograph
• Identity and Residence proof
• Last six months bank statements
• Processing fee cheque
• Latest Salary Slip for salaried
• Proof of Business for self-employed
• Form 16 for Business Profile and Previous three years Income Tax returns (self and business)

How to apply for a loan?

Applying for a bank loan is easier than one would believe. However, before you pertain for one, you should be conscious of your economic circumstance, lent you will have to compensate the loan proportion later. With all the paperwork implicated and several eligibility standards, you first comprehend your necessity and if you believe it’s a favourable way out for you. In the festival of Lohri 2020, apply for a loan to have several benefits and make you a Happy Lohri.