Brief information about personal loan..

1. PERSONAL LOAN
G. RAMYA SRI

2. Loan :
• loan is when money is given to another party in exchange for repayment of the loan
principal amount plus interest.
• Loan terms are agreed to by each party before any money is advanced.
• A loan may be secured by collateral such as a mortgage or it may be unsecured such as a
credit card.
• Revolving loans or lines can be spent, repaid, and spent again, while term loans are fixed-
rate, fixed-payment loans.
What is a personal loan?
A personal loan is a type of unsecured loan and helps you meet your current financial needs.
You don’t usually need to pledge any security or collateral while availing a personal loan and
your lender provides you with the flexibility to use the funds as per your need. It can serve as
your solution for managing your travel costs and wedding expenses as well as the expenses of
a medical emergency, home renovation, debt consolidation and others.

3. Type of Establishment you are currently working with:
Salaried:
•Public or Private Limited Company
•Partnership or Proprietorship or LLP
Employment Type to get Personal Loan:
Salaried
(Ex. Working at MNC, Govt or similar)
Self Employed Professional
(Ex. CA, Lawyer, Doctor or similar)
Business Owner
(Ex. Director, Partner, Proprietor or Similar)
•Government Employee
•Trust or NGO

4. Self Employed Professional
(Ex. CA, Lawyer, Doctor or
similar)
Business Owner
Ex. Director, Partner, Proprieter
or similar)
Director in Public/ Private
Co.
Proprietor
Partner in Partnership Firm
Lawyer
Doctor
Freelancer/Consultant
Architect

5. Documents required:
•Identity proof (copy of passport/voter ID card/driving license/Aadhaar)
•Address proof (copy of passport/voter ID card/driving license/Aadhaar)
•Bank statement of previous 3 months (Passbook of previous 6 months)
•Two latest salary slip/current dated salary certificate with the latest Form 16
Proof of End use
Eligibility Criteria:
The following people are eligible to apply for a Personal Loan:
•Employees of select private limited companies, employees from public sector undertakings,
including central, state and local bodies
•Individuals between 21 and 60 years of age
•Individuals who have had a job for at least 2 years, with a minimum of 1 year with the current
employer
•HDFC Bank Salary account: Customer who earn a minimum of ₹ 25,000 net income per
month
NON HDFC Bank Salary account Holder: Minimum of ₹ 50,000 net income per month

6. A Personal loan is unsecured form of loan that can be used for multiple purposes such as
for travelling, education, purchase, home renovation, for marriage, in case of medical
emergencies, for business purpose or any other household expenditures.
•Interest Rate Range: 10.99% to 21% (Per Year).
•Repayment Period: Minimum of 1 Year to maximum of 5 Years.
•Processing Fee : 1%-3% of the loan amount + Service Tax.
•Representative Example:, if you take a loan of Rs. 1 lakh at the rate of 16% with
repayment tenure of 3 years, your EMI will be Rs 3,516. The total payable amount at the
end of 3 years would be Rs 1,26,565. Therefore, you are paying total interest amount to the
tune of Rs 26,565. This, however, excludes other applicable charges which are
documentation charges and processing charges:
•Loan Processing Charge@ 2% = Rs 2000 + S.T.