known as the Directorate Financial Services Organization, is a regulatory entity of RBI within India's financial services industry.
Info@dfs.org.in
DIFSO:
Features and Benefits of our Personal Loan
A personal loan is an unsecured loan that is not backed by collateral or security. This makes it a flexible financing option, as there are no limitations on its use.
The followings are the ways a personal loan can be useful:
1. Debt consolidation: Combining multiple debts into a single loan with a lower interest rate to save money on interest payments and make it easier to manage debts.
2. Home renovation: Using a personal loan to fund home renovation projects can increase the value of your home and improve your living conditions.
3. Medical expenses: If you have unexpected medical expenses, such as emergency surgery or hospitalization, a personal loan can help cover the costs.
4. Emergency expenses: A personal loan can help cover unexpected expenses like medical emergencies or car repairs to avoid financial hardship.
5. Vacation/traveling costs: Using a personal loan for a vacation or travel expenses can spread the cost of a trip over time and avoid using high-interest credit cards, but it’s important to manage the debt wisely.
6. Education costs: If you’re considering going back to school or need to pay for educational expenses, such as tuition or textbooks, a personal loan can help.
- 7. Business expenses: If you’re an entrepreneur or small business owner, a personal loan can help you finance your business expenses, such as inventory or equipment.
Personal Loan Eligibility Criteria
To qualify for a personal loan, you have to meet certain criteria. Below are the important factors that lenders take into consideration to decide your eligibility for a personal loan.
- 1. Age should fall under the range of 21 years to 60 years
- 2. Net monthly income should be 15,000/- for salaried and self-employed, yearly transactions should be a minimum of 20 lakhs
- 3. Credit score must be above 650
- 4. Debt-to-income ratio
- 5. Employment stability
- 6. Maintained a good credit score
- 7. Clear repayment history
- 8. Must be a Resident Citizen of India
Check eligibility for personal loan
Availing of a personal loan can be a daunting task, but it is essential to make an informed decision to avoid financial difficulties later. Here are some tips to help you select the personal loan for your needs:
Determine the Loan Amount: Before applying for a personal loan, assess your financial situation and determine the amount you need to borrow. Avoid borrowing more than you need as it may lead to debt traps.
Check your Credit Score : A good credit score increases your chances of getting a loan at a lower interest rate. Before applying for a loan, check your credit score and report to ensure that there are no errors or discrepancies that may affect your loan application.
Compare Interest Rates: Compare the interest rates of different lenders and choose the one that offers the lowest interest rate. A lower interest rate can help you save a significant amount of money over the loan tenure. You can also calculate your EMI by using EMI Calculator by visiting www.ruloans.com .
(INTEREST RATE INDEX)
Evaluate Other Charges: Apart from interest rates, lenders may levy other charges such as processing fees, prepayment charges, late payment fees, etc. Evaluate these charges and choose a lender that offers the most reasonable fees.
(PROCESSING CHARGE COMPARISON)
Check Eligibility Criteria: Different lenders have different eligibility criteria for personal loans. Check the eligibility criteria before applying to ensure that you meet the requirements.
Read the Terms and Conditions: Before signing the loan agreement, read the terms and conditions carefully. Understand the repayment schedule, interest rates, fees, and penalties to avoid any surprises later.
Choose the Right Tenure: Choose a loan tenure that is suitable for your repayment capacity. A longer tenure may lower your EMI, but it will increase the total interest outgo.
Look for Repayment Flexibility : When taking out a personal loan, it’s essential to consider repayment flexibility as one of the factors. Repayment flexibility refers to the ability to pay back the loan amount at your convenience, without any financial strain.
The fees and charges of personal loans usually vary from lender to lender and from case to case. The aforementioned table will give you a fair idea of the fees and charges related to personal loans:
Particulars
Charges
Loan Processing Fees
4999/- to 5% of Loan Amount
Loan Cancellation
Usually 3000 to 5% of Loan Amount
Stamp Duty Charges
150/- to 300/-
Legal Fees
As per actuals
Penal Charges
Usually 2% per month
EMI / Cheque Bonus
Approx 499/- to 599/-
Documents required to apply for Personal Loan
Identity Proof – Passport, Voter’s ID, Driving License, PAN Card, Aadhaar Card
Proof of Residence or Address Proof – Passport, Voter’s ID, Driving License, PAN Card, Aadhaar Card, Electricity Bill, Telephone Bill, Ration Card
Age Proof – Passport, Voter’s ID, Driving License, PAN Card, Aadhaar Card
Income Proof – 1 year Bank statement, 3 months Salary Slips
Employment Proof – Employment Certificate, Office address proof
GST or VAT Registration for Self-employed
Photograph – Passport-size photographs
Business proof – Business registration documents such as a partnership deed, Memorandum of Association (MOA), Articles of Association (AOA), etc.
Income tax returns – Documents of the past 2-3 years to verify income and tax payment history
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