1. First Time Buyer's Section:
Sometimes there are immediate necessity of finances, may be for an unexpected holiday or urgent funds required for medical treatment. In such cases Personal Loans can be availed. The loans are normally given for any logical purpose (e.g. expenses for domestic or foreign travel, medical treatment, any type of financial obligation, such as marriage of family member, paying of educational expenses for children, buying of assets etc.) Personal loans help to attend immediate essentials without much trouble.

2. The basic requirements before applying for a Personal loan

• Minimum age of Applicant: 21 years
• Maximum age of Applicant at loan maturity: 60 years
• Minimum employment: Minimum 2 years in employment and minimum 1 year in the current organization

3. The Process
Application can be done directly to the Banks for personal loans. Online personal loan forms are available with most of the banks. There is no processing fee but some banks do charge a minimal processing fee for used vehicles. The major steps involving the disbursal of personal loans in India can be summarized as:

• Apply for the Loan complete with all documents required by the bank
• Verification of the documents furnished, office proof, residence proof and other formalities.
• Credit Appraisal for deciding if the applicant is legitimate for the loan
• Disbursal of the loan.

4. Repayment Option
Different Banks and Financial Institutions have different policies and the repayment option also depends on the amount of loan taken and the loan terms. The loan can be paid in equated monthly installments (EMI). The loan can also be paid through post-dated cheques (PDC) or through Standing Instructions or through ECS to debit from the Bank account through ECS with the EMI amount.

5. Types of interest rates for the loans
Usually different personal loan rates are applicable for salaried and self employed individuals. Starting from 2 to 3% up to 12 to 14 %.

6. Security
Most banks do not ask for any security for personal loans.

7. Documents Required
Nowadays some Banks also offer instant personal loans. Usually the following documents are required at the time of application of the loan:

• Proof of Identity
• Address Proof
• Bank Statements
• Latest salary slip or current dated salary certificate with latest Form 16

8. Tenure
Personal finance India is a huge market these days. Different public and private sector banks offer personal loans on negotiable terms and conditions. Usually the loan is repayable in 48 EMI, i.e. in 4 years. Repayment tenure ranges from 1 year to 4 years depending on the loan terms and conditions. Generally no prepayment penalties are calculated for Personal Loans.