Can I get a loan for purchasing cane furniture? Hmmm, good question that. Thing is that such specialised queries can be answered if you. mail us. However, if you have the rather mundane but inevitable queries on: How do I make an application for a loan, the tenure of the loan among others, you have come to the right spot where these are answered. So go ahead and scroll down to get your answers.
All salaried individual earning a minimum gross monthly income of Rs.3,500 and self employed individual earning a minimum gross annual income of Rs 40,000 between the age group of 21-58 are eligible for a consumer loan. However, some of the banks may have different criteria
You need to approach a bank or a financial institution with the latest salary slips and TDS form 16 of the last to financial years of yourself and your co-applicant, if any. You need to submit the application form along with the necessary documents. On receipt of the application form, the bank might ask questions wherever necessary and pronounce the judgement of whether you get the loan or not and the amount if you do..
The loan limit is linked to the income of the applicant. While arriving at the loan limit, other income of the applicant as well as the income of the spouse can be combined. Mostly the income of other Family members not included in defining your loan
limit.
Some of the banks can give loans upto Rs.1,00,000. The extent of funding depends on the product, model that you wish to purchase and the repayment period you are opting for.
The processing fee is payable before the loan is disbursed. This is basically charged to cover the cost of processing your loan application. Generally, all companies charge around 1%-3% of the loan amount.
In this scheme, the financer provides upto 100% of the cost of the product but you would have to pay anywhere between 2-7 EMIs in advance. Indirectly you are paying the financier margin money as the EMIs paid in advance which is deducted from the loan amount.
In this kind of scheme, the financer provides 100% finance but you have to provide the
financer with 15-35% of the loan amount as a deposit. Your deposit will earn interest for the loan tenure while you repay your loan in EMIs.
If you are assessed eligible and you have all the necessary documents, then it takes
around 24-48 hours to secure a loan.(it might depends on some of the banks)
EMI or Equated Monthly Instalments, refers to the fixed sum of money that you will be
paying to the housing finance company every month.
The EMI comprises both interest and principal repayment. The size of the EMI depends on the quantum of loan, interest rate applicable and the term of the loan.
The interest on consumer loans is usually calculated either on monthly reducing or yearly reducing balance.
Monthly reducing : In this system the principal on which you pay interest reduces every month as you pay your EMI.
Annual Reducing : In this system the principal is reduced at the end of the year, thus you continue to pay interest on a certain portion of the principal which you have actually paid back to the lender. Which means the EMI for the monthly reducing system is effectively lesser than the second system of calculating interest.
If you are salaried you would need to produce: Form 16 (Tax Deducted at Source) and/or
income tax returns for the last two years; Last two salary slips from the employer; Bank statements for the past 6 months.
You might be required to give the following as security :
a) Hypothecation of assets created (articles bought)
b) Third party guarantee acceptable to the bank if check off facility is not available.
c) Registration of hypothecation charge with Regional Transport Authority (in case of
vehicles only)
The banks may want you to go for insurance in the following cases
a) Two-wheelers bought to be insured for full value
b)For articles above Rs.10000/- insurance will be for market value or at least 110% of the loan amount whichever is higher.
Yes, quite a few of them do. For eg: Central Bank of India gives a concession:
1.If you are a salaried employee, you would need to furnish an undertaking from the
employer for deductions in installments and get a 1%concession in the interest rate.
2.If you are not a salaried employee, by being prompt in repayment of installments on due dates, you can get a 1% rebate after the end of one year.
3.Others too can get the 1% interest rebate for prompt repayment.
