Personal Loan

A loan that a person takes from a bank to finance his/her personal requirements is termed as a personal loan in Kolkata. 

People of the following category can take up an instant personal loan in Kolkata:

• People who do not work for any organizations but run their own firms or organizations. For example doctors, CA, Architects, etc.
• Businessmen like traders and manufacturers.
• People who get a fixed remuneration for their services.
• When you got the bank to take a paperless personal loan, you do not need to provide any document for mortgage purposes.

However, this has a drawback as it charges higher rates of interest.

The rate for a personal loan in India lies somewhere between 11 to 33 percent. The rates can vary according to the company type, credit score and the principal amount of the loan.

• You do not have to wait for long for the instant personal loan to be sanctioned as it is a quick process.
• It will help you to consolidate your debt into one payment.
• If you are planning for a home improvement project then personal loan in India can be very beneficial for you.
• You can apply for personal loan online with kreditdeals at minimum documentation. 

Features:

The rates of interest of personal loan are fixed and do not change.

You have to repay back the money in a short period of time. The time can vary from 1 year to 5 years depending on the type of bank.

These are the following documents that you need to submit while taking this type of personal loan:

• Residence proof.
• Identity proof.
• The income tax return for the previous two years.

Advantages of Personal Loan:

• The processing of the loan is very quick.
• There is no need for any form of collateral for this type of loan. You require only some documents for verification.
• Your credit score increases if you repay back the loan on time.

You can take a paperless personal loan for any reason. It does not have to be anything specific as in the case of a car loan or a home loan.

These are the conditions for eligibility for an instant personal loan:

• The person must be from India.
• Age
• Occupation
• The type of company the person works for
• Salary of the individual
• The location of the person like Metro or non-metro
• Defaults or settlement of credits
• The capacity of repayment after deducting the EMIs

The following documents are required for an instant personal loan.

• Photographs of passport size.
• Age proof documents like a pan card
• Application form for a personal loan which should be filled
• Identity proof like Aadhar card
• Proof of address like a passport
• Documents required for people who draw a salary
• The salary slip of the last three months
• Offer letter of the present company
• Current form 16
• Bank statement of the last six month

The purpose of the personal loan can be for any reason. Some of the personal reasons are listed below:

• House renovation
• Education-related expenditure
• Matrimonial reasons
• Medical purposes
• Travel related expenditure
• The process of repayment of Personal Loan
• Following are the points that you need to take care of for the repayment process of the instant personal loan:
• You should make sure that you pay the EMI on time.
• If you do not pay monthly the EMI it may have an adverse effect on the CIBIL score.
• Remember the loan repayment date every month.
• The EMI of the loan should be between 30 to 40 percent.

Here is a list of few points that you need to remember in order to avoid rejection of a paperless personal loan application:

• • Make sure you have the personal loan eligibility before applying. If your eligibility criteria fail then it is going to affect your credit score badly.
  • Make sure you are fully informed about the instant personal loan that you will be applying to. The information includes interest rates, methods of repayment and charges of processing.
  • Make sure that your credit score is more than 750 in order to increase your chances of loan approval.
  • Do not become a guarantor of loan for anyone.
  • Submit the correct documents required for the paperless personal loan.
  • Choose the product that is best for your requirements. If the bank thinks that it may be impossible for you to repay back the money, you may not get the loan approval.

The personal loan interest rate of SBI is 12.5%.

Following are the personal loan interest rates in India of other banks:

• HDFC Bank: from 10.25 %
• ICICI Bank: from 10.25%
• Axis Bank: from 10.49%
• Yes Bank: from 10.99 %
• Union Bank of India: from 12.7%
• Bank of Baroda: from 11.6%
• Indian Bank: from 11.05 %
• Allahabad Bank: from 13.51%
• Indian Overseas Bank: from 12.7%

There are no tax deductions or exemptions allowed on the instant personal loan.

There is, however, income tax deduction on the instant personal loan. You can avail income tax deduction on this type of loan for the following purposes:

• For constructing residential properties.
• For buying any asset
• For business purposes.

Certain points regarding tax benefit of personal loan:

You should submit required proofs to the income tax authority in order to be eligible for the claim of a tax deduction on the interest paid on paperless personal loan.

The money that you take as the instant personal loan is not taxable as it is not considered to be an income.

You need to be ready with the following documents in order to claim tax benefit for the paperless personal loan:

• Sanction paper
• Auditor’s report and bank certificate
• Expense vouchers

You can use the personal loan EMI calculator SBI for calculating the instant personal loan EMI:

EMI= [P*R*(1+R)^N]/[(1+R)^N-1]

P= Principal Amount

N= Tenure of repayment

R= rate of interest

EMI= The equated monthly installment