Why the Interest Rate Rises in a Personal Loan

imagePersonal loans are availed during a financial crisis or for instant cash availability. There is no restriction on using a personal loan; however, one has to show valid income proof for availing a personal loan. Personal loans can come in handy during emergencies. Personal loans interest rate is meagre as compared to others at only 9.99%. 

Personal loan process

Dena Bank Personal Loan can be availed online through the bank's official website or app and by visiting the bank. An application can be submitted in both ways. 

A tenure period of 12 to 60 months is given. 1% of the loan amount is charged as a processing fee. Prepayments charges are applicable at the rate of 5% of the loan amount. A loan of Rs 5,000 to 20 lakh can be availed. A verification process is conducted where Identity proof and address proof has to be submitted. An income has to be submitted. The loan gets approved based on all verification processes. 

Eligibility for Personal Loan

Salaried and self-employed people can avail of a personal loan, but the criteria are different for both of them. 

  • The bank's valid age for availing personal loan by self-employed people is 21-65 years old, whereas for salaried people it is  21-58 years old.

  • A decent CIBIL Score of 70 and above is accepted.

  • A monthly income criterion is present for salaried people, which is Rs 30000 per month.

  • An annual income criterion for Self-employed people is Rs. 15 lakhs per year.

  • The self-employed and salaried people should be working in their irrespective fields for a minimum of 5 years and two years respectively.

  • No Floating rates are charged on the Interest. 

Document verification

Document verification is a mandatory process for Loan approval. A p[roof of identity, residence and income is asked for a simple background check of the Borrower. The Borrower must be an Indian citizen who has successfully met all the specific eligibility criteria. 

  • Identity proof: The documents such as Aadhar Card, Voter ID, Driving license, PAN Card can be submitted. 

  • Address proof: The documents like Passport, Ration card, utility bills, Rent agreement for people living on rent, and it must be of 1 year can be submitted.

  • Income proof: A bank statement, Salary slip of 6 months or ITR for the last two years assessment can be submitted as proof.

One amongst the following has to be submitted as proof for each respectively. The loan approval solely depends on the document verification.

Loan Approval

The loan approval can take a long time to get processed and approved. Personal loans can take a long time of 15 days to get approved. ICICI Bank has come up with faster processing for its customers. A loan can get approved after an online application within seconds once the document verification is completed. For non-ICICI bank customers, it can take a long time to get processed. 2.25% of the loan amount + GST is charged as a processing fee. 

The advantage of the Online application process is that it takes less time, and all the updates can be checked on the app or official website. E-mail updates are also provided to the Borrower. The Borrower has to make an account online using email-ID and a strong password and linking it with a bank account. A user idea, password, and mobile are particular to the Borrower, which he/she has to fill for login. A user ID is unique to everyone and is used for filling an online application.

To conclude, ICICI Bank provides a wide range of Personal Loan schemes with minimal interest rates, which attracts the borrowers.

Comments