Personal Loan Products

New Car Loans

In the market for a new car, Worthington Federal Bank finances up to 90% of the sales
prices (including tax, title, licensing fees, etc.) with fixed rates and terms ranging from 36
months up to 60 months.

Used Car Loans

Not ready to purchase a new car or searching for a second vehicle, Worthington Federal
Bank offers used auto loans with financing up to 85% of the “sales price” or current
NADA “retail value” with fixed rates and terms ranging from 24 months up to 48
months.

Personal Loans Unsecured

Looking to borrow funds for an emergency, travel expenses, wedding or small repairs,
Worthington Federal Bank offers personal unsecured loans with terms ranging from 24
months up to 48 months.

Personal Loans Secured

Borrowing funds may sometimes seem difficult but with a personal secured loan
borrowing can be much easier. Secure your personal loan with collateral such as cash
value in an insurance policy, stock or other marketable securities, etc. with terms ranging
from 24 months up to 48 months.

New Boat/Recreational Vehicles Loans

Purchasing a new Boat or Recreational Vehicles can be expensive. However, with
Worthington Federal Bank financing up to 90% of the sales price (including tax, title,
licensing fees, etc.) and terms ranging from 36 months up to 60 months, your purchase
can be much easier.

Used Boat/ Recreational Vehicles Loans

Worthington Federal Bank offers great rates and terms from 24 months to 48 months on
used Boats/RVs with financing up to 90% of the sales price or current BVB (Boat Value
Book) or Marine Survey “retail value”.

Deposit Account Loans

A great way to establish or repair credit is to borrow using your own deposit account as
collateral. A deposit account loan allows you to borrow up to 95% or your deposit
account balance as collateral at a low rate, based on your current deposit rate.

Home Equity Line of Credit

Most likely, your home is your best investment. So if you are looking for a return on your
investment Worthington Federal Bank offers Home Equity Lines of Credit with financing
up to 100% on a revolving line of credit.
Fixed Rate Home Equity Loan
At times large expenses come unexpectedly. That’s one reason why Worthington Federal
Bank offers Home Equity Loans. With Worthington Federal Bank you can borrow up to
100% of the equity in your home with a fixed rate.

2)History
Dena Bank was established in the year 1938 on the 26th of May. It was set up by the
family of renowned Devkaran Nanjee. The initial name of the bank was Devkaran Nanjee
Banking Company Ltd. In the month of December in 1939, the bank became a Public
Company and changed its name to Dena Bank Ltd. It was in the year 1969, that Dena
Bank was made a national bank and the term Ltd was dropped from the name.

Dena Bank is one of the well known banks in the country and has a very good market
share. Today, the bank has around 240 branches and around 150 ATMs across the
country. The bank has already provided around 1.8 lakh debit cards to the account
holders.

Dena Bank is one of the 6 public sector banks which have been sanctioned by the World
Bank for the process of sanctioning of a loan of Rs.72.3 crore. The loan was given for the
purpose of development in the year 1995. The World Bank has also provided the bank
with technological training and expertise for the upgradation of its services.

The bank is also credited with the introduction of a credit card facility in the rural sector
of India named as "Dena Krishi Sakh Patra". It was also created a Drive in ATM counted
in Juhu in Mumbai. In order to enable customers to rate the services, the bank has also
introduced the customer rating system.

Dena bank looking to upgrade the personal loan in

rural areas
Indian banks have found an unlikely ally in India Post or the department of postal
services. Very soon, village post offices will offer personal and agricultural loans, carry
out credit and background checks and even offer villagers the ease of withdrawing and
depositing money using smart cards.
The first of these initiatives will be signed with India Post, Corporation Bank and Dena
Bank soon, followed by one with Union Bank.
General purpose loans or personal loans ranging from Rs 5,000 to Rs 25,000 will be
available from Corporation Bank and Dena Bank while others will offer agricultural
loans of up to Rs 25 lakh to buy equipment such as tractors. Even loans up to a crore are
being discussed.

Dena Bank Personal loans cater all legally correct personal needs.
Buying a car, consolidation of debt, holidaying expansion of business- every purpose
finds its solution with these loan plans. The primary conditions of loan application are the
borrower must be a citizen of the India and above eighteen years. Loan amount varies
between 20 thousand and 5 lacs

3)Introduction
What’s the basics about Personal Loans?
Although it’s difficult to tell what makes a personal loan “personal” as opposed to a
standard loan, it does appear that generally lending institutions apply the label “personal”
to loans that are put to personal uses. These would include a new car, a holiday, private
hospital treatment, but then again, many institutions which advertise personal loans
change their label to “homeowners” loan. All in all, it can be quite confusing, but the
labels don’t really matter.

To be secure or not secure?

In general, we regard a personal loan as a loan that is for non-business use and is
unsecured.
Different companies will have different levels at which they will insist on security for
your loan. This is when they want something such as your house that they can sell if you
stop paying your monthly repayments. It’s their way of getting their money back.
Quite often unsecured loans are used for buying things like cars and in these instances the
lenders know they can get their money back by taking the car if you break the rules of the
loan agreement. This will be written in the terms and conditions, so always check the
small print.

For life
Personal loans are often for quite short periods, maybe up to 7 years or so. Usually the
lender will offer you the choice of how much you want to borrow and over how long a
period. You can then work out on your monthly income budget how much you can afford
and calculate how much you want that loan to cost. The interest rate on a personal loan
will remain the same throughout the life of the loan and generally speaking the longer the
term you take the loan out for, the more it will cost you.
4)Advantages & Disadvantages of a Personal Loan
At any situation you don’t have enough cash for your need; personal loans will surely
help you to overcome the misery. Personal loans are most probably the fastest and easily
available loan product.
Advantages:

• The main advantage is the flexibility of using the money for whatever purpose
you intend.

• Secondly personal loans are usually unsecured which means you don’t have to
offer security or obtain a guarantor.

• Finally there is less paperwork involved since the bank doesn’t have to verify
assets used to secure the loan which also means that these loans are approved
more quickly.

• If you don’t own a home, or you don’t have much equity in your home, a
personal loan may be your best choice if you are in need of money. If you get a
personal loan with a fixed rate and term, it forces you to be disciplined and pay
the loan off within the specified time frame unlike a credit card, which tempts you
to continue spending. Also, the interest rate on a personal loan is usually lower
than that of a credit card, although the credit card’s initial teaser rate may be
lower.
Disadvantages:

• The disadvantage is that these loans are relatively difficult to obtain

• The qualifying criteria are stricter than for other loans.

• The rate of interest is also higher than for most other loans and may be as high as
25 per cent particularly if your credit profile is weak.
Keep this in mind while obtaining one from any of the lending agencies

history pl
According to the federal government's Bureau of Economic Indicators, the average
personal loan interest rate in 2005 was 12.05%, and ranged from 11.95% to 12.22%. An
increase in rate, but a decline in applications versus 2004.
From the time first settlers arrived up through to the early twentieth century, most
consumers had limited access to credit, or found it quite expensive. Only the richer or
more politically powerful were able to obtain personal loans from commercial banks,
because banks did not grant consumer loans to the general public.
Access to credit was a privilege reserved for the elite, and getting a personal loan meant
more than just filling out an application. It required signing countless documents, often
including co-signors, collateral, waiting for approval and; if approved, the applicant
would have to endure a repayment lecture from the bank officer before receiving the
loan.
Times have changed... Today sophisticated processes allow consumers to get credit or a
personal loan in a variety of manners, including through an ATM machine, and by
leveraging their paycheck instead of their mortgage.
As the popularity of credit cards (which also offer a cash advance), increases,
applications for personal loans are declining. It's much easier for consumers to simply use
a credit card than to apply and await approval for a personal loan, which they may not
qualify for due to bad credit or high risks associated with their card charges. And now, a
payday loan offers quicker, and easier qualifications, to obtain cash.
As consumer debt increases and banks' risks rise, some lenders prefer offering a short
term, low amount unsecured personal loan, while others may offer large long term
personal loans yet opt to require home-ownership as collateral to secure the personal
loan. Nonetheless, it is far easier today to obtain credit than our forefathers experienced.
In fact, it's often too easy, causing many Americans to fall into a debt trap, and having to
obtain lines of credit in order to repay other lines of credit that are becoming delinquent.
To continue the ease of obtaining personal loans, consumers should use them wisely, and
not get into a revolving debt problem such as using the loan to pay off a credit card
balance and then simply add new charges onto it.

6)Personal Loan Process

Personal loan is easy to get compared to Home loan. With less paper work, easy
documentation its much simpler and quick.Banks check the eligibility of the customer
and every bank has its own income & eligibility criteria .If your profile and credit history
is in accord with the banks requirement then the loan can be disbursed in 3 days.

Few stages of Personal loan Process

1. Loan Documentation Submission-Check with the Bank that you are applying that
you have all the necessary documents required by that particular Bank.Make sure all
documents are handed over to your loan officer in one go to avoid delays.Please go
through Documentation corner of Deal4loans.com before finalizing the Bank
2.Verification- After submission of documents in bank the Bank field investigator will
visit your home and office in to verify whether the information provided by you is correct
or not .Please make sure you give your complete address with Landmarks etc so that your
verification officer can reach at your address.If the verification officer is not able to
locate your office/home your application can be rejected and Once your loan application
is rejected you will not be able to apply for the loan in next 6 months.
3.Documentation verification-Your documents will be checked and verified with
originals by the credit officer of the bank and if found okay the approval will be sent to
your loan officer
4.After your loan has been approved and all critical conditions are satisfied like after
checking CIBIL, your loan closing documents are prepared sent for your signature. These
documents consist of the note, deed of trust, and other legal/compliance related
documents
5.Once the bank or loan officer is satisfied with documents and if the documents are
signed properly ,loan officer will approve your loan and disbursed the amount through
cheque or DD and you will get a loan.

7)Personal Loans products important

Like many other things, loans have become a way of life today. Most people, but, do not
generally understand the difference between the various types of loans that they avail of,
nor do they know how they work. This is true in case of personal loan also. It is better,
therefore, to understand the basics of personal loans before availing them.
The tenure of personal loans is generally for short periods, varying from 12 to 48 months.
These are unsecured loans in that the customer does not offer any collateral as security.
Personal loans are sanctioned based on a person’s income proofs as well as residence and
identity proofs.
The interest rates charged by the various banks and NBFCs for personal loans can be
anywhere between 14 per cent and 25 per cent per annum and repayments are generally
in equated monthly installments (EMIs). The Personal Loan Interest Rates are generally
high when compared to home or car loans as the former are unsecured loans and the
customer does not offer any collateral as security. The cost of servicing small loans is
also high as compared to long-term large loans like home or car loans. Moreover being
unsecured, the risk involved for the lender is higher.
In most cases, a processing fee is deducted from the loan amount and hence the amount
disbursed is slightly lower than the sanctioned loan amount. The processing fee,
therefore, is also part of the loan amount and the borrower repays this along with the total
loan sanctioned.
Generally, interest is levied on a reducing balance method. The EMI is amortized in a
way where the interest amount for the tenure is collected in higher amounts in the earlier
installments and decreases through the tenure. Calculate Your EMI with EMI Calculator
Therefore prepayments in a short-term personal loan is not generally good for the
customer as most of the principal will still be outstanding in the later months of the
tenure. Moreover, foreclosure of the loan is not allowed in the first 6 months of taking the
loan in most cases and a pre-payment penalty is levied in case someone wants to close the
loan early. This is done as the whole cost of lending is calculated based on the tenure of
the loan and this cost is recovered through the EMIs over the tenure of the loan.
Also, if the interest rates come down during the period of your EMI tenure, your interest
rate will not come down automatically. You will have to see the contract terms and
conditions of your bank account. The bank might give a fresh loan at a lower interest rate
but for your existing loan, generally the finance company or the bank does not change the
interest rate.
Personal loans are conveniently available to fund unforeseen expenses like medical
exigencies or one time large payments like admission fee for schools and colleges,
marriage and festival expenses, repair to house, and so on. Most banks and finance
companies disburse such loans within a week, making this a convenient option to fulfill
these needs. Above all, these loans are available without any security and therefore they
are more convenient. Borrowers must study all the terms and conditions of personal loans
carefully before availing any loan.
Apply personal loan and get best deals from banks.

8)Know about Personal Loans | Charges involved

Personal loan is always said as an easy way to fulfill your short term money requirement.
But from last one year Banks were not focusing on Personal Loan in the way they are
doing this year. Things like a pre-approved loan or a loan on credit card are easily
available for customers, with attractive rate of interests.
Few things to be borne in mind while choosing a good deal for Personal loan:
1) Rate of interest (ROI): The personal loan interest rates varies from 14% to 30%.The
rate of interest depends upon customer profile and it varies from bank to bank. Basic
factors that determine rate of interest are customer’s net income, age, residential status,
age, marital status, work experience and so on and so forth.
2) Fee & Charges: Each loan disbursed by Bank, bears few charges which are to be paid
by the applicant. Even at the time of prepayment one needs to pay an extra sum along
with the outstanding amount.
a) Loan Processing Charges: When the loan is sanctioned at that instant itself, a
percentage of the loan amount is charged by the bank which is called processing fee. This
fee varies across banks.
b) Prepayment Charges: If you wish to close your loan before the tenure of the loan is
completed, then an extra charge is levied on the outstanding amount by the bank which is
known as prepayment charges.

What to do if you can’t pay your EMI | Personal Loans

It could happen that things do not go according to plan and you get stuck with a personal
loan thus unable to meet the EMI (equated monthly installment) commitments.
First step would be to try to convert the personal loan from an unsecured to a secured
loan against assets such as a house, car, mutual funds, RBI bonds, gold, bank Fixed
Deposits, life insurance policy, shares and debentures by asking the bank to restructure
your loan. This should ensure that the EMI amount is reduced making it easier to make
payments as the rate of interest charged on a secured loan is much less than on unsecured
loan.
Just in case you feel that you are not gaining from the conversion you can
pledge/mortgage the assets you have and obtain a new loan against them and then with
that loan amount, pay-off your existing personal loan.
But this does not mean that you will not do everything possible to repay the loan in the
first place. Loan is a means to acquire something with help and not deceive a lender to
waste the resources for unproductive use. So take loans and achieve all your dreams with
financial help from lenders/banks.

9)A Few tips on choosing a personal loan

There can be many reasons to borrow extra money through taking loans: the
consolidation of outstanding debts, home improvements, education fees or any other
requirement. Taking a loan can be an effective way of generating the extra funds but, as
with any form of borrowing, it is worth researching and bearing a few things in mind.
Personal loans in India are unsecured loans. This means that the lender has not secured
their investment against any existing property or shares that the borrower may have.
Because this is a risk for the lender, it does mean that the rates of payment are likely to be
slightly higher than on a secure loan, reflecting the nature of the risk.
Personal loans are designed for consumers who want to borrow up to 15 lacs or less over
a fixed term or period of time.
Because they are designed to be paid off over a fixed term, some companies impose
penalties on those who try and pay off their personal loans early, usually in the form of a
large, accumulated interest bill. In this case, it may be worth considering a flexible loan,
where these charges do not apply.

10)Major problems faced by personal loan customers

Here are some common problems faced by personal loan customers, and possible ways
to avoid them.
Problem: Delay in disbursement beyond the promised date.
Solution: Budget for at least a week's delay in disbursement, even after you have handed
over all papers.
Problem: Non-disbursement despite approval of loan.
Solution: Just move your loan to another bank.
Problem: Delay in handing over cheque disbursement even though interest meter starts
from date of cheque rather than the date on which the cheque is handed over.
Solution: Open an account with the bank early enough and ask for credit of the loan
proceeds to that account; as part of the loan application itself. This will ensure that the
bank cannot charge interest for any delay in handing over the cheque

11)features
To look out for the best personal loans for poor credit borrowers, it is best to consider
effective features of such products. Here are some of the basic features to look out for.
Are you in need of personal loans for poor credit? You are fortunate because there is an
active competition for such products. However, you could also realize the setback as you
might be confused over which loans to choose and apply for. It is not surprising that even
people with bad credit rating these days are heavily prioritized in the market.
The competition among lenders gets fiercer and fiercer every day. You could take this to
your advantage so you could enjoy personal loans to fund your needs, consolidate debts,
repair a car or home, or spend for a vacation. How could you make sure you are choosing
the best option for your situation? Here is a simple checklist.

Secured Or Unsecured Loan

Personal loans for poor credit borrowers could be secured or unsecured. Secured loans
are those requiring assets as collateral or security. Unsecured loans are those that do not
ask for security. Many bad credit lenders first weight their options because both loan
types have pros and cons.
Secured loans could impose lower interest rates and smaller fees, but the collateral could
be put at risk in case of possible default. Unsecured loans, for its part, could call for
higher interest rates and bigger fees to make sure lenders and creditors could capitalize on
the logical and practical risks of lending without security.

Attractive Interest Rates

When considering taking any form of loan, it is wise for any borrower to first consider
interest rates. Different lenders offer varying interest rates. Most of the time, such rates
are dictated by demand and by risks (as mentioned).
To determine the best interest rates offered, it is best if you would take note of APR or
annualized percentage rate. APR of 6% or less is ideal these days. Personal loans for poor
credit borrowers have always imposed higher interest rates, but due to intensifying
competition, such rates get lower and lower. A comparison shop would be practical.
Terms And Conditions
All lenders have terms and conditions for personal loans for poor credit. Before entering
into any personal loan agreement, it is your duty to first read and scrutinize the terms and
conditions. This way, you could make sure the loan contract is not onerous in favor of the
lender only. Experts always advise consumers to take note of the small prints. Long-term
loans and repayments are ideal, as required deferred payments could be more reasonable
and lighter.
Find for provisions about interest rates, loan terms, and possible late-payment penalties.
It is important that you know about such factors when securing personal loans for poor
credit. Again, you should run a comparison shop and choose the best based on basic and
important features. You could better comprehend loan terms if you would read the loan
conditions and other types of business mechanics.

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.

12)The characteristics of a personal loan

A personal loan differs from a mortgage or a home equity loan because it is unsecured.
That means there is no property used as collateral for the loan. Other characteristic of
personal loans include:

• Unsecured. A personal loan is not secured by property such as a home.

• Rates. Interest rates for personal loans are higher than secured loans (such as a
 mortgage or home equity loan), but are lower than credit cards (after the credit
card’s initial teaser rate).

• Fixed term. A personal loan is often due at the end of a set term, in which case
the interest rate is fixed.

• Revolving line of credit. A personal loan can also work as a revolving line of
credit like a credit card. In this case, the interest rate is variable.

• Taxes. The interest on a personal loan is not tax deductible.

Who is a good candidate for a personal loan?

Some borrowers may prefer a personal loan.

• Renters. If a borrower does not own a home, a personal loan may be the only
option available to them, other than credit cards, if a sum of money is needed.

• Home equity tapped out. If the borrower has already used a lot of their home
equity and needs a small loan, a personal loan can be a good choice.

• Small loan. If the borrower only needs a few thousand dollars that can be paid off
within a reasonable time frame, a personal loan might be a better choice than
using home equity or credit cards.

• Credit union members. Credit unions typically offer a reasonable interest rate on
a personal loan.

13)Benefits of Personal loan

1. A Loan without security : A Personal Loan is not a secured loan (bank doesn’t ask
for any security or collateral) as against a Secured Loan where one is required to pledge a
house or other security to acquire a loan.

2. Simple Documentation: A Personal Loan can be accessed with minimal paperwork or

documentation & doesn’t take much time to procure as against a Secured Loan.

3. No specification about the end use of the loan amount : You are not required to
disclose the end use of the money borrowed, Banks are concerned about the fact that
whether the borrower is able to pay back the loan with interest before the due date or not
and they confirm this by checking the income, employment or business & other factors of
the borrower.

4. Big Loan amount : Personal Loan is a means to fulfill bigger loan requirement, you
can take a loan ranging from Rs. 50,000 to Rs. 20 lakh.
• Compare Interest Rates : Personal Loan can be compared primarily on the basis of
interest rates which vary across banks depending on your profile which is further linked
to your occupation, salary/income, credit history etc. The personal loan interest rate
ranges from 12% to 25%, you must go for that loan which is offering you at the minimum
rate.

• Other Charges : You should also check on the other charges like processing fee, pre-
payment penalties and documentation fee because they increase the overall loan cost and
vary widely across banks.

• Evaluation of various Loan offers : You should first calculate the entire loan cost
across banks which constitutes the rate of interest & banks other charges. Evaluate offers
keeping the tenure of the loan constant & compare the rate of interest, EMIs & other
charges. This process will help you get the Best Loan deal.

• EMIs : EMI is the monthly equated installment which constitutes the principal amount
and the interest on the principal equally divided across each month in the loan tenure. Use
our EMI Calculator to compare EMIs across banks

• Tenure : Tenure is the time frame for the personal loan payments to be paid back to the
bank; it ranges from 1 year to 5 years. If you have a longer tenure you will end up paying
more interest & will have lower EMI, on the other hand shorter loan tenure will carry
higher EMIs & the interest amount is less. You must compare the loan offers by keeping
the tenure constant.

• Turnaround time : It becomes one of the most important factors in evaluation of your
loan application when you are in a dire need of money. Turnaround time is the time
which banks take in processing your loan application; you must check this parameter
which varies from bank to bank.

14)Servicing your personal loan

When it comes to servicing your personal loan, the Commonwealth Bank offers a range
of products and services to meet your every day banking requirements.
Servicing made easier
Online banking
NetBank is a virtual Commonwealth Bank branch on your computer that gives you
complete control over your finances, 24 hours a day, 7 days a week.
Switch between products
You may be able to switch your current loan to another type of personal loan that is more
suited to your current needs, or make changes to your loan term (a switching fee and
conditions apply). To organise a switch please call 13 14 31, 8.00am to 8.00pm, 7 days a
week, or visit any Commonwealth Bank branch.
Repayment Redraw
Repayment Redraw can be made using ATMs, branches, EFTPOB, EFTPOS, NetBank or
telephone banking. To find out if you are eligible for Repayment Redraw, please call 13
14 31, 8.00am to 8.00pm, 7 days a week, or visit any Commonwealth Bank branch.
Important information

• The personal loan application should be completed by the applicant(s) only. The
contract is a direct contract between The Commonwealth Bank and the
applicant(s).

• Applications for finance are subject to the Commonwealth Bank's normal credit
approval. Full terms and conditions will be included in our loan offer. Other fees
and charges are payable.
introduction
Due to the uncertainty of moment and no reliance on the wheels of fortune, many a times
we are confronted with situations where we require a substantial amount of money. We
cannot ignore them, neither do we want to, but sometimes we just lack the adequate
monetary resources required to handle a situation properly during the course of our lives..
This is where personal loans come in.

A blessing in disguise, a personal loan is basically meant to cater to an individual's need

during any requirement, urgent or otherwise. Be it the purchase of a television or
refrigerator, paying off your credit card dues, wedding of your children, etc. you can use
it for anything you want. The major advantage of taking a personal loan is the fact of it's
all purpose utility for one's personal use. To add to its benefits, there is no need for any
clarification to the lending party regarding as to how one would use would this borrowed
money (unlike specific loans like car loans and education loans, where you need to
provide details for the purpose of the loan).

Another advantage is that the processing is also faster when compared to other loans.
What's more, you don't even need any security, collateral or guarantor for the same.
While personal loans are the seemingly perfect solution to one's needs, proper care must
always be to compare all options before taking the final leap. The most important factor,
as always, is the rate of interest being charged. Many times, banks might look like giving
cheaper interest rates but might cover-up the costs under the heads of precessing fee and
other charges. Hence, one should always look at the effective rate of interest.

Eligibility Criteria for Personal Loans

Salaried Individuals
 • Minimum Age of the Applicant - 21 years

• Maximum Age of Applicant at Loan Maturity - 58 years

• Minimum Employment Period - 2 years in total and 1 year at present organization

• Minimum Income - Rs. 8000 per month

Self Employed Professionals & Businessman

• Minimum Age of the Applicant - 25 years

• Maximum age of Applicant at Loan Maturity - 65 years

• Minimum Business Period - Minimum 3 years in current business and 5 years

total experience

• Minimum Annual Income - Rs.60,000

Documents Required for Personal Loan

• Bank Statement for last three months (where salary/income is credited)

• Salary Slips for last three months (if salaried) or ITR for the last two years (if self
employed)

• Proof of Continuity in Current Job - Form 16 / Company Appointment Letter (if

salaried)

• Proof of Identity (Copy Of Passport / Driving License / Voters ID / PAN Card /

Photo Credit Card / Employee ID Card)

• Proof of Residence (Copy Of Ration Card / Utility Bill / LIC Policy Receipt)

• Proof of Qualification Highest Degree (for Professionals / Govt employees)

• For Professionals - proof of qualification, say degree, registration with

professional council, etc.

• Two passport size photographs

Public sector banks to focus on PERSONAL LOANS

Public sector banks have plans to focus on Personal Loans in this fiscal to boost interest
rate margin and push profits. 2010 is showing increase in jobs as well as overall
economic growth. This has prompted the banks to address the growing demand of
personal loans. Also, banks generate more returns through personal loans compared to
other loan products.
In fact Allahabad Bank, Uco Bank, Union Bank of India and United Bank of India have
devised strategies to sell their high-yielding personal loan products to retail customers.
These banks have lower retail loan market share of 12-14% compared to industry average
of 20-22%.
2009 had seen reduction in personal loan segment as due to the economic downturn;
banks feared default and thus reduced offers for the same.
Banks believe that personal loans help build relation with customers. They prefer salaried
customers and establish a link with their salary account to minimize the probability of
default.
With the support of budget there has been increase in the purchasing power of individuals
(especially middle class families) which has in turn driven the demand for car loans
(mostly for small cars) and housing loans.

types of personal loan

Personal loans are often the most preferred type of loan on account of their flexibility.
The two most common types of personal loans are:

• Secured Loans and

• Unsecured Loans
Both these options are linked to the choice that one can use any fixed asset to serve as
collateral to secure an easy personal loan.

A Secured Personal Loan Is Distinguished By the Following

Characteristics
• The loan that is secured against some sort of fixed or immovable/movable asset is
known as secured loan.

• 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.

• Secured personal loans involve rates of interest that are much lower and easy
options for repayment.

• Due to the collateral that is provided, banks and financial institutions usually are
unperturbed by defaults in payments or by debts that are pending.

• Secured personal loans are made available to the individual within a period of
thirty days after submitting an application.
 Secured Personal Loan Benefit the Borrower and the Lender
Secured Personal Loans can be repaid over a longer period of time, with a lower
monthly payment.
They are cost effective on account of the low rates of interest charged on the loan.
Since the loan has been secured by pledging the assets of the borrower, the risk to the
lender's investment is greatly reduced.
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

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.
 CONCLUSION
Personal loan are short-term loans distributed to sort out the
immediate problems at higher interest rate. Through it is considered as
an unsecured loan, so its rate at interest is always higher in the
comparison of secured loan ( home loan, auto loan etc.)

The rate of interest for personal loan is determined on the basis of

statutory liqudity ratio (SLR) of the RBI ( Reserve Bank of India) India's
central bank. SLR is the short-term rate of central bank which
commercial bank needs to maintain in the form of cash, or gold or
government. The personal loan works as a one stop shop for various
financial necessities of the borrower.

Utilized the facilities of personal loan it is extremely need but also get
it with insurance policy to remove the risk factors. Enjoy!

WEBLIOGRAPHY
www.google.com
www.scribd.com