Frequently Asked Questions
Find answers to all your loan related queries below!
Education Loan Queries
An education loan is a specific amount of money borrowed to get financial help for higher education related expenses.
A individual who have strong academic record is able to secure a education loan more quicker. Education loan is applied by full time students whereas they must have a co-applicant, who needs a stable source of income, this might be either a parent, a guardian, a spouse, or a parent-in-law (in case of married individual).
There are various types of education loan available for students, the primary ones are enlisted below-
- Undergraduate Loans.
- Postgraduate Loans.
- Career Development Loans.
The secondary type of student’s loans that are available for students are enlisted below-
- Federal student’s loans
- Private student’s loans
- Parent PLUS loans
- Perkins loans
- State specific loans.
The interest rate on education loan might be floating according to the norms of lender bank and RBI norms, whereas 11.15% p.a. to 12.40% p.a is the interest rate on education loan in the year 2023.
There is no specific limit for education loan to students wanting to study abroad. The amount of loan depends from bank to bank, majority of banks offer loan of up to 50 lakhs.
The process for applying for education loan is as following-
- Do your research & choose the lender bank.
- Fill the application form of loan.
- Appear for the interview round.
- rovide the required documents.
- Approval & verification of documents from the bank.
- Loan disbursal.
YES, you can transfer your education loan to a lender which offers a lower interest rate. While transferring the loan you must consider other factors like, repayment terms, processing fees and customer service of the lender bank.
A low CIBIL score or credit history is considered as a lacking point for an education loan, whereas for some lender banks this does not reflect any serious issue.
Institutes Loan
Cash (CC) is a short-term loan for companies, businesses and financial institutions to meet their capital needs. Overdraft limit is a loan made available from the bank for individuals and companies to withdraw money from the bank where they hold their accounts, even if the balance is low, zero or with a small balance.
can be used as collateral for a stock and bond copy depending on the fund owner, credit history, relationship with the bank and FD and soon. Investment, Insurance Policy etc. Mainly for general purposes, including business purposes for businesses such as working capital Product-based loans Financial and safe deposit-based loans otherwise reduced in discount month Use Cash if there is a previous amount below. , a new account must be opened using the overdraft facility of the applicant’s (account holder’s) current account Available for at least 1 year Available for a short period of time such as one month or quarterly, up to 1 year (Renewal option annually) Individuals, Sellers, Traders, Manufacturers, Distributors, Corporations, Partnerships, Sole Proprietorships, LLPs etc. thing. Account holders of commercial companies can use fines as work and business function. Overdraft Limit is based on financial terms and interest.
Personal Loan
Personal Loan defines as the loan which comes with minimal documentation and which does not require mortgage or any specific security. The borrowed amount can be used as any individual’s financial need and as any other loan policy repaying should be according to agreed terms with bank ,short to mid term loan in 48 hr to satisfy your medical & personal experience.
After approval of the loan it may take approximately 1-2 working days to disburse the personal loan. Also now-a-days few banks send the cheque through mail to clients, also few banks uses the policy to directly share the amount to individuals bank accounts
Directly contact with bank or any financial institution, an individual have to check the personal loan eligibility, interest rate, payable EMI, after this, individual have to apply for loan online and after approval of application the amount will be disbursed to the bank account of the client.
NO, it is not mandatory to buy insurance policy with any personal loans. Usually this should be noted by the individual and also informed by the bank or financial institutions.
Usually the personal loans can be used for large expenses, debt consolidation, emergency expenses and many more individual expenditures. And the loans are paid back in monthly instalments and can be extended for few years according the bank policy.
The amount ranges from 50,000 to 50 lakhs. This is basically based on factors like age, income, credit score and job type of the individual.
TGenerally the tenure duration ranges from 12 to 60 months. This also depends on how the individual stands financially, here higher the income it can help the individual close a loan in short tenure.
Documents required for personal loan –
- Loan application
- Identity proof
- Employer and income verification
- Address proof
Additionally the lender may need-
- Credit score
- Loan purpose
Below are the steps in loan approval process-
- Pre – qualification process
- Loan application
- Application processing
- Underwriting process
- Credit decision
- Quality check
- Loan funding.
There are few tips to get lowest interest rates on personal loans –
- Maintain good credit score
- Maintain good repayment track record
- Compare interest rates offered by different lenders
- Look out for special offers
- Good existing relationship with bank or financial institutes
- Evaluate the method of interest rate calculation
- Maintain good history of employment.
Firstly a sanctioning letter is sent by lender bank to your email or by post, which will include information related to interest rate, loan amount and EMI.
Credit report is the statement that has information about your credit activity and current credit situation. Credit score is calculated on the basis of information in your credit report.
Usually the loan length would be from 12 to 60 months or sometimes more. It may vary on the chosen bank or finance company by the individual.
For applying loan offline an individual must visit the choice of bank or any finance company and fill the application form waiting for the sanctioning letter.