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INTRODUCTION

A loan is a redistribution of financial assets over a time between the

lender and the giver of the loan. The borrower initially receives an
amount of money from the lender, which they pay back usually but not
always in regular installments to the lender. This service is generally
provided at a cost, discounted as interest on the debt, to the lender. Acting
as a principal of loans is one of the principal task for financial institution
for banks. Loans are generally funded by deposits for other institution
issuing of debt contract, such as bonds is a typical form of funding.

Due to rising of basic needs, personal loan facilitated by various bank

play a vital role in fulfilling the people desire of buying their dreams.
They are ideal when we need or buy a product for ideal when do not have
ready cash.
Personal loan are better choice compared with consumer durable loans. In
fact before we consider taking a consumer durable loan we might
consider a personal loan instead as the procedure is slightly longer but the
rate of interest is lower. Flexibility of duration and availability of various
schemes make personal loan an attractive option.

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It is an all purpose a loan, which is given in most cases without any kind
of security like a car, home, shares or any kind of property.
Most nationalized, foreign, and co-operative banks offer personal loan.
Besides banks, some other finance companies and financial institution
also offer them.
Lending rates differ for different financiers and currently from 12% to
30%. These loans are available in the range of Rs 15000 to Rs 10 lakhs.
The repayment period varies widely; some lenders usually permit
repayment up to a maximum of 60 months. And most lenders restrict the
lending to a maximum period of 36 months.
Most bank will give anywhere between Rs20, 000 and Rs10 lakhs (Rs 1
million) for a maximum for period of 60 months. To be eligible for the
loan you need to be between the age of 25years and 58years in case of a
salaried individual or between 25 years and 65years if you are selfemployed.
While issuing the loans, banks look at factors like your salary or profit,
the number of years you have worked in a particular organization and the
number of years you have stayed in your current residence.

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Advantages and disadvantages of personal loan

With a lot many lenders on the block willing to offer their loan services to
all, applying for a loan nowadays, is no longer a problem. Gone are the
days when you had to wait to buy something or go out and do what you
wanted to, because a hassle free and available to all personal loan is now
no more a dream, but a reality.
Today, various loans are available in the market to suit individual needs
of the people. In Personal Loans as well, different types of loans are
available. They can serve you well in your financial limitations while
making your living better. No delay should be done in availing a loan
especially when it suits your financial situation and can be available to
you in a desired time.
A personal loan is often described as unsecured loans because it allows
you to borrow money without having to provide security against it. You
can use the personal loans for the purchase of your house or a car. The
personal loans are better for a longer time period.

Following are some of the advantages of the personal loans- While

making an evaluation of the cost of the loan you need to consider

the TAR (Total Amount Repayable) which means that the total amount
that you owe towards the bank or a lender which also includes the rate of
interest on the loan and the payments need to be made on a monthly
basis. A suitable deal is where you get a lower TAR.
- The maximum amount that you can borrow ranges up to 25,000 and
the time period for the refund is up to ten years. The advantage with the

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personal loan is that when you take a maximum amount as a loan then
you have to pay a lower rate of interest.
It is totally different from the terms and conditions for the mortgage. The
unsecured personal loans are not protected for your property so if you are
not able to refund the loan then you can be rest assured that your house is
safe.
- The interest rates for the personal loans are also fixed. This makes it
easy for you to make a planning for the payments that has to be made.
The refunding amount also remains stagnant all the way through the time
period of the loan.
- With a dynamic market scenario of loans the rate of interest has seen
so many ups and downs. Now to get a loan it has become simpler than
ever before. The financial companies offer you loans through their
telephone service. They have toll-free numbers and they guide and
provide you the best deals and offers.
Following are some of the disadvantages of the personal loans:
- Various financial companies and clever lenders introduce certain plans
like- make a purchase and pay it later, offer free gift items, etc. These will
only raise your price of the loan. So take a wiser decision and go for the
basic loan with favorable terms and conditions. Always make a choice for
those loans which have a low rate of interest and where the terms of the
refund are moderate.
- Dont make a hasty decision in choosing a personal loan. It is not right
to take a loan from just another bank. Make a survey and try to find out
various offers and plans that various other banks and financial companies
have to offer. Now with the internet things has become very simpler. You
can visit various financial companies, what are the offers and plans these

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companies are offering. Accordingly you can take a decision whichever

plan suits you.
- The PPI (Payment Protection Insurance) provides you the refund on a
monthly basis if you are not able to work, you have met with an accident,
in case you have suffered a heavy loss in your business, you are not
employed anywhere, and make a payment for your loan in case of your
death. You should be aware of this type of insurance as it is a costly affair
and it adds an amount ranging from 1,000 to 5,000.
- According to a survey majority of the personal loans are paid off before
the completion of their tenure. You need to look out for those lenders who
take heavy amount for the settling of your loans before the tenure.
- You have to handle the annual percentage rates very carefully as it
entirely depends on your financial credibility. You probably might
not be eligible as to be entitled for it. You need to have a good credit
history otherwise you wont be able to qualify for the lenders
potential customer list.
Here are few guidelines before taking any concrete decision
regarding the personal loans:
- Analyze all the offers and schemes before applying for the loan. There
are various lenders who are not real and their motive is just to earn
profits.
- To be entitled for a personal loan the procedure followed is rigorous
although there is less documentation involved in it.
- Go through the contract thoroughly and reassess the closure price and
for any hidden cost (If any). It is an important step which will only
benefit you.

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- If you are planning for a personal loan then most of the time it is
cheaper than getting a credit card.
- Excluding the consumer durable loans the rate of interest for the
personal loans are high.

Personal loans - Special emphasis on bad

credit personal loans
Before approving a loan application, the lender calculates
the following two affordability parameters to make sure
that the chances of repayment are not bleak:
Credit history, to ascertain the loan seeker's past

financial record as good or average or bad.

Debt to income ratio (DTI = Debts/Income), to

compute the loan seeker's current monetary position.

Depending on the above-mentioned calculations, the
lender categorizes the loan seeker as: prime customer
(person with a good credit record), near prime customer
(person with an average credit record) or sub-prime
customer (person with a poor or bad or adverse credit
record).
A sub-prime client is further categorized to get a better
idea of the hazards that he may pose - low adverse credit,
medium adverse credit or heavy adverse credit. After this
detailed evaluation and classification, the lender approves
the

loan

application/amount

terms/conditions.

and

decides

the

loan

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Sub-prime loan seekers can avail credit support under the

'bad credit personal loans' category. Available in both
secured and unsecured form, this special personal loan
sub-category helps people bring their lives back on track.
For

obvious

reasons,

prime

and

even

near-prime

customers can negotiate for a favorable loan deal. But,

sub-prime customers have to settle for high APRs, and
stringent loan terms and conditions. Still, secured loans
are more gainful and are generally easier to get as
compared to unsecured loans.
Secured bad credit personal loans, the best solution
for homeowners and property owners are comparatively
safer for the lenders, as they are availed by pledging
collateral. As a result, there are chances that the loan
seeker may get a less stringent loan deal.
But, unsecured bad credit personal loans, probably the
only option for those UK residents who are incapable of
offering collateral, are risky for the lenders, as they are
availed without pledging collateral. As a result, the
creditor cannot afford to offer a flexible loan deal.

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How to ensure a safe personal loan?

The online media for applying for loans is becoming
increasingly popular these days. Being time saving and
convenient, it's preferred by most of the borrowers.
Nobody likes visiting the bank manager in persona to
apply for a loan. But, one must ensure that s/he is
applying to the right lender and not to a loan shark. Loan
sharks are unlicensed lenders who take advantage of
those who are rejected elsewhere or are suffering from
extreme bad credit. These lenders usually prey on
vulnerable people like the unemployed, lone parents, bad
credit holders, etc.
So, whenever you apply for personal loans, make sure
that the online lender you are dealing with is registered
with OFT (Office of Fair Trading) and regulated by FISA
(Finance Industry Standard association). Loan sharks are
not licensed and therefore they operate outside the law.
These unlicensed moneylenders charge very high interest
rates and use violence and threat if the borrower is unable
to repay the loan.
Personal loans should be taken with great care and
caution. The loan agreement should be read carefully
before signing and if needed, professional help from a
financial consultant should be taken. An unlicensed lender
otherwise may make you life hell. He does the following:

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Grant you personal loans on very expensive rates

Harasses you if you fall behind your repayments

Pressurizes you to borrow more from them to repay

your existing debts

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Personal cash loan

It can be a viable short-term solution for temporary monetary
problems because these allow consumers to receive funding for
bills, expenses, and other necessary costs. When handled wisely,
they can improve an individuals current financial situation. When
not handled wisely, however, a personal cash loan can lead to
serious trouble. If help is needed, funding can be qualified for
quickly, with little documentation. However, because of higher
interest rates and serious default terms, one should cautiously
consider taking out this form of funding.
There are many different funding programs, including payday
advances, cash advances or other unsecured cash loans. They
are available through store-front and financial companies, as well
as on the Internet. While there really are no regulations for which a
personal cash loan can be used, people typically use them to help
pay bills on time, or to pay for some unforeseen expense that they
do not have adequate savings to cover. Unfortunately, some
people may also use personal cash loans to meet their perceived
need for instant gratification. Using money in this manner can get
a person into financial trouble quickly. Because these programs
can have high interest rates and little tolerance for missed
payments, they are best used in emergency situations, or when
the borrower knows they can repay the obligation.
Getting a personal cash loan can be quick and easy, which is good
for the person who is in financial need. Lenders who offer personal
cash loans do not have many requirements. Most lenders require
the borrower to be at least 18 years old and to have had a

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checking account open and in use for at least 90 days. The

borrower also must show documentation that proves they receive
a minimum of $1000 per month to qualify. Most lenders typically do
not require good credit and rarely run credit checks for instant
loans. However, lending companies may check for other
outstanding debts or in-process bankruptcies.
This funding can be a blessing or a curse to the one who is
borrowing. When a person takes on a personal cash loan, it is
important to realize they are in debt to the lender. As the Bible
says, "borrower is servant to the lender" (Proverbs 22:7). This can
be very overwhelming and should encourage the individual to seek
financial freedom. However, unforeseen financial difficulties
sometimes arise and people need personal cash loans to pay
these obligations. It is important to be very selective in this process
and choose lenders that offer the lowest rates and best terms.

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Personal loan guaranteed

Personal loan guaranteed are available from many sources, and
are relatively easy to obtain either through the Internet, finance
company, bank, or even a credit card company for anyone with
collateral. The quickest (and apparently most common) financing is
payday loans. They are secured by the next paycheck, and allow
the borrower to receive funds between paydays. They do not
require a credit check when they are short term and $500 or less.
There is a fee for this type of financing that is taken out up front, so
actual funds received from a personal loan guaranteed are the
amount less the fee.
When larger amounts are needed, such as to buy a computer, or
furniture, or to pay tuition or vacation expenses, a credit check will
most certainly be done. In that case, in order to avoid having
several companies check credit (and thus lowering personal credit
rating), it would be wiser to use a broker who would make a onetime check and pass that information on to possible lenders. A
bank statement and paycheck stub will be needed to prove
earnings enough to qualify for this personal loan guaranteed.
Typical fees for personal loans guaranteed are 15-30% of the
amount borrowed.
When one has to begin borrowing on future paychecks or on the
home, it may a good time to review financial priorities. It is
important to keep money in its proper place: "For the love of
money is the root of all evil: which while some coveted after, they
have erred from the faith, and pierced themselves through with
many sorrows." (1 Timothy 6:10). Remember that God promises
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each person who believes in Him treasures unimaginable in

heaven. Don't store up treasures here, concentrate on the best
that is yet to come.
Another source is the home equity line of credit. The larger
personal loans guaranteed by the equity in the home are good for
debt consolidation, home remodeling and the like. The interest rate
is lower than the payday loans. This kind of financing equates to a
second mortgage, and if selling a home before it's paid off, that
personal loan guaranteed comes out of the sale proceeds first.
When counting on the proceeds of a house to make a down
payment on the next one, this could present a serious problem.
The best way to handle this kind of personal loan guaranteed is to
stay put until both the loan and mortgage are paid off.

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There are basically Two Types of Personal Loans:1) Secured loan

2) Unsecured loan
1) Secured loan
a) The loan that is secured against some sort of fixed or
immovable/movable asset is known as secured loan.
b) This sort of guaranteed personal loans is easily available on account of
the collateral that is provided alongside; thereby making the lending
institutions more comfortable in forwarding the loan.
c) Secured personal loans involve rates of interest that are much lower
and easy options for repayment.
d) Due to the collateral that is provided, banks and financial institutions
usually are unperturbed by defaults in payments or by debts that are
pending.
e) Secured personal loans are made available to the individual within a
period of thirty days after submitting an application.
How Does A Secured Personal Loan Benefit the Borrower And the
Lender?
1. Secured Personal Loans can be repaid over a longer period of time,
with a lower monthly payment.
2. They are cost effective on account of the low rates of interest
charged on the loan.
3. Since the loan has been secured by pledging the assets of the
borrower, the risk to the lender's investment is greatly reduced.

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4. Their easy availability is another factor. Very few loan applications

for secured loans are turned down; since the loan would be secured
on the strength of the borrower's assets
Secured personal loans can only be obtained by a borrower after keeping
an asset such as real estate property, car or jewelry as collateral with the
lender.
These kinds of loans help the lenders make sure that they will get their
money back, and hence they approve and provide the loans for any
amount of money with more security. Other than that, the approval of the
loan application also depends a lot on the borrowers credit history, his
current monetary position, his current employment status and the
obtainable equity in the deposited collateral.

2) Unsecured loan
An unsecured personal loan allows you to borrow money without having
to provide security against it, such as your home or car. This is what
makes a secured personal loan different from unsecured personal loan.
The people who dont own their own house and students who are living
away from their home are the most suitable borrowers of unsecured
personal loans.
If you dont have enough financial resources to repay the loan and those
who dont want to put their costly items in jeopardy, then the unsecured
personal loans are the best option for you. You have the danger of getting
your property seized in secured loans and unsecured personal loans are
total contradictory to it which offers less botheration to the borrowers.
Usually the borrowers are attracted towards those offers where you are
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hassle-free. These all factors are the major contributors to the popularity
of the unsecured personal loans.
An individual can take a personal loan for a variety of reasons. Loans for
personal debt help provide funds to purchase your dream car, pay for
your mortgage or home improvement requirements. In fact unsecured
personal loans help meet most of the financial emergencies that an
individual can think of. The main advantage of the unsecured personal
loan is that anybody is entitled for an unsecured personal loan whether
with a good credit or a poor credit. Generally it has been witnessed that a
borrower with a poor credit is not given the unsecured personal loans
easily by the lenders. But there are some lenders who still provide
unsecured personal loans to the people with poor credit. There are people
who have the privilege of unsecured personal loans after being a bankrupt
or after their property being taken over.
The rate of interest is higher for the unsecured personal loans as
compared to the secured personal loans. In the case of unsecured personal
loans the lender is at a risk because incase you are not able to make a
repay of the loan then the lender has nothing to take the possession of as
there is not collateral made against the loan.
The unsecured credit line and unsecured credit cars are also forms of
unsecured personal loans. The unsecured credit cars are offered to those
borrowers those who are financial stable and have a good financial
background. For unsecured credit card you need not deposit a
considerable amount and on the contrary to this you have to make a
decided amount in advance in secured credit cards.

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The main and the most important factor of the unsecured personal loan is
that you need not deposit any collateral against the loan to the lender.
Through unsecured credit line the businessmen are benefited the most as
they are in need of cash. The unsecured credit line is offered according to
ones financial status. It is up to the business man what he wants to do
with the credit whether he uses to buy some machines or use it to expand
his business. It is evident that the interest is only charged on the amount
you have taken.
The rate of interest for the unsecured loan is relatively higher than the
secured loans. No doubt that unsecured personal loans are the most
preferred by majority of the people but there are some strict rules and
guidelines attached with it. Before you arrive to any concrete decision
you need to have all the details of the details pertaining to the unsecured
personal loans. It is true that you dont have to make any collateral for the
unsecured personal loans but still the refunds has to made on time. Just in
case you fail to make a refund of the loans there are probabilities that you
can face federal lawsuit against you which will only make the matter
worse. Your current financial status will be affected and in a worse
scenario you will be denied for any form of loans in the coming time.
Some important facts about unsecured personal loans:
- For unsecured personal loan you need to have a good past financial
record. The basic condition for offering an unsecured personal loan is
your credibility to refund the loan.
- For getting an unsecured persona loan you do not have to deposit any
collateral against the loan with the lender.

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- The loan approval process of the unsecured personal loans is very quick
the reason being less paperwork is put into use. There is no appraisal of
the property involved adding to the fast approval process of the
unsecured personal loans.
- The loans are approved achieving a target of 25,000.
- The rate of interest of the unsecured personal loan is dynamic in nature
and can differ from seven to thirty percent.
- The terms and guidelines of the unsecured personal loans are not so
favorable. The time period for the repayment of the loan can vary from
six to ten years. Under this condition the smaller the loan period the more
you have to pay on a monthly basis.
The Benefits behind an Unsecured Personal Loan

There is no requirement of collateral, and the borrower need not pledge

his assets to procure the loan.

There is no necessity for documents regarding the borrower's tax returns,

or for financial statements. The information on the borrower's financial
background need not be verified by supporting documents.
Quick approvals, and an easy application process, are other attractive
benefits of this loan

Unsecured loans + unsecured personal loans

- Favorites among the borrowers.
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In the last two years, the percentage of unsecured loan

takers has increased considerably in the UK loan market.
Not only the tenants, most homeowners also prefer taking
loans without pledging any asset, especially the home, as
security to the lender. The risk of repossession of home
plays heavy on the minds of the borrowers, when they
weigh different loan options. Unsecured loans are masters
in luring customers because of the features cited below:

Available for a range of different amounts and

repayment terms.

Not secured against any asset.

No restriction on the purpose of availing loan.

Amount available usually ranges from 500 to

15,000.

Loan tenure may stretch from 6 months to 10 years.

Different lenders offer different APRs.

Most borrowers wonder that if nothing is secured, then on
what basis the loan amount is calculated for unsecured
personal loans. There are many factors that play a vital
role in deciding the amount to be granted as unsecured
loans. Some of the parameters are listed below.

Credit History of the borrower- A borrower with few

arrears, defaults, and miss payments is more likely to
get a greater amount than the one who has an
unhealthy credit record. So, better the credit score of
the borrower, higher the amount granted as unsecured
loans.

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Disposable income of the borrower- By disposable

income, one means the approximate income of the
borrower

left

per

month

after

paying

all

living

expenditures, installments of other loans and credit card

payments etc. On the basis of this, the lender decides
how much amount the borrower will be able to pay as
the installment of the new loan.

Debt to income (DTI) ratio- This determines the

affordability of the borrower. DTI is calculated by
dividing the monthly income of the borrower by his
expenditures. This reveals the paying capacity of the
borrower. If the DTI ratio is more than 0.36, the
borrower will get a good amount as unsecured personal
loans.

Credit policies of the lender- Every lender has a

different credit policy. So, the loan amount, tenure and
the APR charged is subject to the lender's criteria. For
instance, the high street banks may not at all provide
unsecured personal loans to those with bad credit
history; whereas, an online lender may approve the
loan.
There are innumerable factors that help in determining
the loan amount of unsecured loans, the major ones being

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discussed above. The borrowers' requirements and say

also works. In most cases, the borrowers mention the
purpose for which they are procuring unsecured loans in
the loan application form. As per the purpose, the lenders
grant unsecured loans.

Short Term Personal Loans

Short Term Personal Loans can be got through banks and online financial
companies, and a wide variety of other sources. With such a Short Term
Personal Loan: The rate of interest involved is usually high. This is
because the period of repayment is usually for a short time. Such types of
short term personal loans have to be beneficial to both the borrower and
the lender, and high rates of interest are one of the ways by which a bank
or a financial company stands to benefit.
- This type of short term funding is often utilized to help individuals
who are in need of varying sums of money for a short period. Many
of the lending companies usually provide for such a loan, and also
stipulate the maximum amount of money that can be borrowed under
such a circumstance.
- Banks, while giving this type of short term personal loan, usually
require collateral, before disbursing the same. Online financial
companies only require a credit check, but lend very small sums of
money. Banks do not offer more than $15, 000 or $20, 000 dollars as
well, and individuals seeking larger sums of money, would have to
tap other sources for funding.

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- Because of the negative and positive aspects of short term personal

loans, it is recommended that the individual does his research
thoroughly, before he applies for funding.
Fast Cash Advance Loan
Sometimes, you may be in need of a quick payday loan, so that you could
meet an unexpected money crisis. Car repair and other unexpected bills
usually occur at inconvenient times. In case you do not have the extra
cash to meet these unexpected expenses, you could really consider
applying for a cash advance.
A Fast Cash Advance Loan:
- Is similar to a bank loan- only cash advances are a lot easier to
qualify for, and enjoy a shorter term. Chances that your application
for a bank loan may be denied are high as banks have a requirement
of sufficient income, a collateral and good credit rating.
- Has a two week term. Therefore your loan is due along with your
next paycheck. Requires that the applicant must be at least 18 years
of age. The cash advance company would also be checking out
/confirming your salary and employment. While the company is keen
to help you out, it also wishes to satisfy itself that you can repay the
loan.
- Renders you eligible to receive funds up to a maximum of $1000,
with a cash advance. Some companies allow larger sums to be
borrowed.
- Typically fast cash advance loans are due within the period of two
weeks. Taking the circumstances of the borrower into consideration
however, some cash advance companies would expect that at least

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half the loan amount will be repaid in two weeks, and the balance in
a month. Such loans are called 30 Day Payday Loans.
- But remember that before taking such a 30 day payday loan, choose
a company that allows for long term loans, and do not assume that all
cash advance companies would give long term cash advance. Far
better to enter into a long term loan agreement, before taking the
loan, otherwise you would have to pay extra interest and fees for the
late period.
Military Personal Loans are easy for servicemen to get anytime. Military
jobs involve good salaries and high status and sometimes these could
complicate matters by incurring extra expenses.

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A PERSONAL LOAN OF ICICI BANK

An ICICI Bank personal loan is the one stop for all your financial needs
to fulfill any of your desires. You can now secure a fast and easy personal
loan for an amount up to Rs 15lakhs at attractive interest rates, with an
ICICI Bank personal loan.
With ICICI Bank personal loan you can get instant money for a wide
range of your personal needs like:1. Renovation of your house
2. A holiday with your family
3. Your childs education
4. Buying a laptop or a electronic equipments
5. Medical expenses or any other emergencies.
The best personal loan cants get easier than an ICICI Bank personal
loan. To secure a instant personal loan all you need is one of the
following:1. A salary slip
2. Your credit card statement
3. Repayment track of an existing loan.
For instant, at ICICI Bank, your net salary needs to be 96,000 annually or
you need to have a net after tax of Rs 60,000 per annum. If you are a
salaried individual you should have worked in your current organization
for at least 1 year and if you are self-employed then you must have been
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running your business for at least 3 years. You must have also been in
your current residence for at least a year.
The loan is sanctioned within 3 working days. The processing fee is
generally around 2% of the loan amount and is deducted up front the
disbursement amount. Most bank charge pre-payment penalty of between
3% to 5% of the remaining amount.
Objective
1. The various personal loan provides by ICICI Bank aims at
provides financial support from the banking and financial system
to the needy people for taking personal loan in India.
2. The main emphasis is that the needy people should be provided
with an opportunity to take personal loan with financial support
from the banking system with affordable terms and condition.
3. To make people aware to take advantages of the various types of
personal loan provided by various bank.
4. To provide easy finance to the people.
FEATURES
1. Personal loan with a peace of mind: - ICICI bank personal loan
provide a free life insurance cover (including total and permanent
disability due to accident or sickness) to the value of the loan
outstanding. The insurance cover is for outstanding balance of the
personal loan as on date of death or total and permanent disability
due to accident or sickness, will be covered excluding any
defaulted installment.
2. A loan for every one: - loans for both salaried and self-employed
personnel with freedom to jointly apply with your spouse.
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3. Quick and hassle free loan:- quick processing time of 24 hours

with hassle free documentation. No security or personal guarantors
required.
4. Get more from your loan:- we offer attractive interest rate with
loan from Rs 10,000lac to Rs 1,00,000 lac or to 10 times to the net
remuneration whichever is lower.
5. Flexible repayment option:- you have flexibility to Choose the
repayment period of upto 5 years (60 installments) and we also
allow early settlement at a nominal fee.
6. Loan ranging from Rs 20,000 to Rs 15 lac

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Eligibility Terms for your Personal Loan

You can avail of an ICICI Bank Personal Loan if you meet the following
criteria:
Criteria
Age
Net Salary

Salaried
Self - Employed
25 yrs. - 58 yrs. 25 yrs. - 65 yrs.
Net
annual Net Profit after tax
income

96,000 p.a
Employees

Eligibility

Rs. - Rs. 60,000 p.a

of Doctors,

Public Ltd. cos. Architects,

MBA's,
CA's,

Private Ltd. cos. Engineers, Traders

MNCs
Years

Or & Manufacturers

Government.
in 1 Year

3 Years

current job /
profession
Years
in 1 Year

1 Year

current
residence

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Documents
Documents

Salaried

( Pre Sanction)
Latest

months

Bank

Statement

Yes

Self
Employed
Yes

(where

salary/income is credited)
3 Latest salary slips
Last

years

computation

Yes

ITR

of

Yes

with

income

Certified Financials
Proof of Turnover (Latest

Yes

Sales / Service tax returns)

Proof of Continuity current

Yes

job (Form 16 / Company

appointment letter )
Proof of Continuity current
profession
Certificate

(IT
of

Returns

business

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T.Y.BBI

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continuity issued by the bank)

Proof

of

Identity

one)Passport

(any

Yes

Yes

Yes

Yes

Driving

License / Voters ID / PAN

card / Photo Credit Card /
Employee ID card
Proof of Residence (any one)
Ration Card / Utility bill / LIC
Policy Receipt
Yes

Proof of Office (any one)

Lease deed / Utility bill /
Municipal Tax receipt / title
deed
Proof of Qualification Highest
Degree (for Professionals /
Govt employees

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Yes

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Service Charges for your Personal Loan

Enclosed find the service charges for an ICICI Bank
Personal Loan
Prepayment of the loan is possible after 180 days of
availing the loan.
Foreclosure charges as applicable would be levied on the
outstanding loan.
Part pre-payment is not allowed.
No other fees or commitment charges are levied.

Description

of Personal Loans

charges
Loan
Processing 2* % of loan amount +
Charges

/ Origination Charges of 1%

Origination Charges of loan amount

Prepayment
5% on the
Charges
Charges

for

outstanding
late 2% per month

payment (loans)
Cheque
Swap Rs. 500/Charges
Cheque

bounce Rs. 200/-

charges

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Note:
1) Origination Charges are included in the Advance installments/ First
installment.
2) Service Tax and other govt. taxes, levies, etc.

Application Process

Information

Application to bank

Processing application

Documents

Verification

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Sanctioning of loan

Loan agreement

Disbursement of loan

Repayment

Key Benefits
1. Small business loan with no mortgage and no security required
2. The loan is provided in the form of overdraft, letter of credit or bank
guarantee and you can borrow upto a maximum of Rs. 25 lacs.
3. Faster sanction.
4. Flexible payment scheduled- Part payment or Pre payment.
5. One stop solution with a bouquet of products.
Security
Personal loans are very flexible. They do not required collateral securities or
assets banking. They are disbursed based purely on the financial of the loan
applicant. Additionally your spouse income can be considered in calculating
the loan amount provided he/she guarantees the loan or the loan is taken
jointly.
Loan Repayment
Personal loan are repaid in the of Equated monthly installments. EMI are
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calculated based on the loan amount, the rate of interest and the tenure of the
loan. Banks calculate interest using the reducing balance method. The actual
interest is calculated on a daily reducing balance
Transferability
If your lender is charging a high rate on your loan and you are able to find
another bank willing to lend at lower rate, you can transfer loan to the new
bank and thereby reduce the cost of your loan.

Advantages and disadvantages of different loan programs

Loan Program

Advantages

Disadvantages

Fixed-rate mortgages

Predictable monthly payments

Less risk if market conditions

You pay more in interest

Higher interest rate

cause rates to rise

Unable to take
Rate does not change
Adjustable rate
mortgages

Flexibility
Lower initial monthly payment
You pay less for short term

advantage of lower interest costs

if market changes to lower rates
More risk
Inability to predict future
housing costs

ownership
Potential higher
May be easier to qualify for

payments (at max. interest rate)

higher loan amounts

Stated income
mortgages

Don't need to verify income

Higher rates
Need a low LTV to
qualify

Combination loans
(such as an 80/10/10)

Avoid PMI

Possibly higher monthly

payments

Potential tax advantages

Two monthly payments
instead of one
Combination loans
(such as an 80/10/10)

Avoid PMI

Possibly higher monthly

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Potential tax advantages

payments
Two monthly payments
instead of one

Home equity line of

credit

Flexible access to funds

Potential tax advantages
You only draw what you need

Ties up equity making it

unavailable for other needs
Higher interest rate than

You only pay interest on what

a first mortgage

you borrow
Home equity loan

Predictable fixed payments

Ties up equity making it

unavailable for other needs

Possible tax advantages

Higher interest rate than
a first mortgage Cannot pay
down and withdraw additional
funds

Types of Personal Loans

On the basis of mode of repayment, personal loans are of
three types - installment loans, balloon loans and single
payment loans. Installments loans are repaid in the form of
monthly installments. The monthly installments carry both the
principal and the interest elements of a loan amount. In case
of balloon loans, interest is paid at regular intervals and the
principal amount is repaid at the end of the loan period. In
case of single payment loans, the entire principal as well as its
interest is paid at the end of the loan period.
Installment Loans: Installment loans are paid in regular amounts on a
schedule, usually monthly, until the loan amount is repaid. There are no
closing fees associated with installment loans.
Single Payment Loans: In this loan, the entire amount of the loan is
due at the end of the loan period. This is probably the most familiar kind
of loan to most people, where the entire sum of the loan is paid back at
once, only with interest.
Balloon Loan: Similar to single-payment loans, balloon loans
sometimes allow more than one payment, but generally have most of

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the amount due at the end of the loan period.

On the basis of mode of repayment, personal loans are of
three types - installment loans, balloon loans and single
payment loans. Installments loans are repaid in the form of
monthly installments. The monthly installments carry both the
principal and the interest elements of a loan amount. In case
of balloon loans, interest is paid at regular intervals and the
principal amount is repaid at the end of the loan period. In
case of single payment loans, the entire principal as well as its
interest is paid at the end of the loan period.

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HSBC Bank offer wide range of personal loan like:Home renovation or other home related expenses.
Marriage expenses.
Travel expenses.
Education expenses.
Transferring an existing loan from another bank.
Purchasing consumer durables or equipment.

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Retiring other debts.

Any other personal needs and contingencies.
Flexibility to choose the EMI dates - 1st or 10th of every month

FEATURES
Flexible personal loan tenor of up to 5 years (i.e. 12, 18, 24, 36,42, 48 and 60
months).
Personal loans available from Rs. 50,000 up to Rs.15,00,000*.
Easy monthly repayment through Equated Monthly Installments (EMI) with
post-dated cheques or direct debit to your bank account from HSBC India.
Transfer of an existing personal loan from another bank to HSBC India, at
attractive interest rates.
No collateral/guarantor requirement.
Easy documentation, quick processing and disbursal.

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Hassle free personal loan based on 12 months credit card/retail loan track
record.

Eligibility Criteria:
1. Applicant can be salaried / self-employed individuals and should be a
resident Indians.
2. Professional self-employed individuals eligible for a personal loan are
Doctors, Chartered Accountants, Cost Accountants, Company Secretaries,
Architects, Engineers and Management Graduates.
3. The minimum age of the Applicant / Guarantor should be 21 years for
salaried and self-employed individuals.
4.The maximum age of the Applicant / Guarantor at loan maturity should be
58 years for salaried individuals (60 years for Central Govt. employees) and
65 years for self-employed individuals.
5. The minimum years in continuous employment / business should be 1 year
for salaried individuals and 2 years for self-employed individuals.
6. The minimum net annual income should be Rs.75,000 p.a. (including coapplicant's or applicant's income) for salaried and self-employed individuals.
7. The minimum stay at current residence should be 1 year for salaried and
self-employed individuals. Terms and conditions apply. All loans at the sole
discretion of The Hong Kong and Shanghai Banking Corporation Limited,
India. Loans available for applicants and properties in and around the limits
of cities where HSBC has branches and is subject to change from time to
time.
Documents
For salaried individuals
1. Latest salary slips showing statutory deduction.
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OR
2. Form 16 (declaration from employer giving details of income and
deduction, duly signed by an authorised signatory of the company.
3. Latest acknowledged IT returns and
4. Bank statement for the last three months
For self-employed individual
1. Computation of income for last two year certified by a CA.
2. P/L and balance sheet for the last two years certified by a CA.
3. Copy of acknowledged IT returns for the last two year.
4. Bank statement for the last six months.
Photo identity (anyone)
1. Passport
2. Photo pan card
3. Defense identity card
4. Voters identity card
5. Driving license
6. Photo ration card
7. Government identity card.
Proof of residence (anyone)
1. Passport
2. Ration card
3. Telephone bill
4. Electricity bill
5. Driving license
6. Society out going bill
7. Voter ID
8. Life insurance policy
Note :
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Only passport can be used as both proof of individual identity and proof of
residence address
Proof of age (anyone)
1. Passport
2. Driving license
3. Voter ID
4. School living certificate
5. Photo ration card

4 easy ways to repay personal loan

1. lower EMI in the first year

You can start by repaying an amount you can afford today.

After a year, you can pay a higher EMI.

2. Interest on utilise loan amount only , not on the entire loan
Simply estimate the maximum loan amount you need. You can
withdraw money as when you need and interest will be charge only
on the amount you withdraw.
3. Last EMI waiver
This repayment option gives you the benefit of getting a last EMI
refunded by paying a marginally higher interest rate (available for
loan of 48 months tenor only an applicable if you repayment is
consistent throughout the period of the loan.
4. Standard EMI repayment
Your EMI for each month will be the same for the tenor of the loan.

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Survey Report
I have done a customer survey from 1st Aug., to 31st Aug., 2007 about personal
loan provided by the banks in that survey I have asked a few questions to the
people and I have got following results:
Are you aware of the personal loan?

Do you plan to pursue personal loan in future?

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Which bank would you like to prefer for pursuing personal loan?

What type of interest rate would you prefer?

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How much importance has the personal loan assume?

Do you think the procedure for personal loan is_

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Frequently asked question

1. What are the minimum and maximum loan amounts?
You can avail of loans ranging from Rs 20,000/- to Rs 15,00,000/depending on your eligibility, income and repayment capacity.
2. What are the loan tenure options?
The loan can be repaid over a period of 12 to 60 months.
3. Are there any additional charges?
A processing fee of 2% of the loan amount is payable upfront. This fee
will be deducted from the disbursal amount payable to you.
4. How much time will it take for my loan to be
approved?
Loans are approved within 72 hours of submission of complete
documentation.
5. Do I have to provide any security, collateral or
guarantors?
No security, collateral or guarantors are required for obtaining a
Personal Loan.

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6. How do I repay the loan?

You can repay the loan in Equated Monthly Instalments (EMI's) through
post-dated cheques favoring ICICI Bank Limited, or if you have an ICICI
Bank account you can mandate us to directly debit the same.

7.Can I prepay my loan?

Yes, you can prepay the entire loan outstanding anytime after 180 days
of availing the same. Prepayment charges as applicable would be
levied on the outstanding loan amount. No part prepayment is allowed.

8. Do I need to open an account with ICICI Bank for

availing and/or servicing the loan?
We will encourage you to start a banking relationship with us so that we
will be able to offer a host of other value added services, which are
complementary to the loan, however opening an account with us is not
mandatory.
9. How do I approach ICICI Bank for a Personal Loan?
You can approach us in any of the following ways

24 hour Customer Care Centre

Apply Online
customer.care@icicibank.com
You can just walk into any of any branches.

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