What is a personal loan?

Personal Loan is the best way to meet your current financial needs without giving any security (collateral free) and with no end use restrictions and can be taken without giving any security. But at the same time Personal Loan is expensive too.

For what purposes can I use personal loan?

Personal Loan can be used for many purposes, like for:

• fulfilling wedding Expenses
• meeting Holiday expenses
• buying a gadget
• renovation of House
• meeting small expenses of your Business/ Profession

What is the eligibility criteria for personal loan?

Eligibility for Personal Loan generally depends on your income, your age, your residential status etc.

What is the maximum loan duration allowed?

Generally, 60 months.

How soon is the loan amount disbursed?

Generally, a Personal Loan is disbursed within 7 working days from the day you applied.

How much personal loan can I borrow?

Personal Loan amount is basically dependent on how much you earn monthly and take home, whether you are salaried or Self-employed. Normally Banks determine around 50% of your income as EMI.

Can I apply jointly with my spouse?

Obviously yes, and Personal Loan amount typically varies as per the co-applicant. However, different banks have different rules but generally Personal Loan amount increases if you apply jointly.

What is the minimum amount of auto Loan provided by banks /Nbfcs?

Banks /Nbfcs offer Auto Loans starting from Rs. 1 lakh onwards. However below mentioned factors are considered while deciding a loan amount:
• What is the applicant's requirement and for how much applicant is eligible?
• What is the repayment capacity of applicant?

For how long can one use the car loan?

Banks / Nbfcs offer a flexible tenure ranging from 12 to 84 months.

What type or make of vehicles do Bank /Nbfc finance?

Car loan available for most multi-utility vehicles, passenger cars, and sports-utility vehicles that are available in India and are bought for personal use.

What process do the Bank/ Nbfc follow after I apply for an Auto Loan?

Once completed application form along with necessary documents like income proof, identity proof, invoice, and so on, are submitted, the following steps take place:

• Processing/approval of application
• Documentation
• Sanctioning of the loan
• Disbursement of loan

What will be required as security or collateral to avail an Auto Loan?

The vehicle for which loan is required is itself used as collateral and will be hypothecated for the loan period. And except that, no other security or collateral is required.

Am I eligilible to sell my vehicle before repayment of entire loan?

Unless bank /nbfc gives a 'No Objection Certificate' (NOC), the applicant cannot sell the vehicle and NOC can only be obtained when applicant have paid off loan.

Will the Bank/ Nbfc charge me if I cancel the Auto Loan after it has been approved or disbursed?

Yes, a fixed charge is applicable if you cancel your Auto Loan. Apart from this, additional charges such as stamp duty charges, interest accumulation, etc. may also be applicable.

Are there any charges towards availing an Auto Loan?

Yes, there are non-refundable processing fee + Service Tax as applicable for every Auto Loan application.

On what type of interest rates, Auto Loans can be availed?

Bank / Nbfc offers provides auto loan on both fixed and floating interest rates basis.

Which Documents are required to be submitted along with the loan application?

1. Completed Application Form having passport size photograph attached thereto.

2. Identity proof in form of PAN Card / Voter’s ID/Passport/Driving License.

3. Address Proof in form of Recent Telephone Bill / Electricity Bill / Property Tax Receipt / Passport / Voter’s ID.

4. Proof of business address in respect of businessmen / industrialists.

5. Employment proof.

6. Salary Certificate.

7. Proof of other income like rent, interest on investment, if any.

8. Audited financial statements for the last 3 years, if the applicant is Professional, Businessman or Self employed.

9. Last 3 years Income Tax / Wealth Tax (if applicable) Returns.

10. Invoice of authorized dealer for Vehicle to be purchased.

What is the maximum duration of loan?

Bank /Nbfc expect the borrower to re-pay the loan amount in no more than 4 (48 months) years.

Do I have to pay the prepayment charges?

Yes, there are nominal pre-payment charges while availing two wheeler loans from Bank / Nbfc.

Whether Security is required to avail the two wheeler loan?

Yes, two-wheeler purchased using loan is hypothecated as security.

Which documents are required for applying two wheeler car loans?

i. Passport size photograph of an applicant
ii. Income proof i.e. payslips, bank credit, form-16 etc. For self-employed – they need to provide the ITR.
iii. Valid ID proof issued by the government – voter’s id, passport, aadhar card, driving license, pan card, identity card issues by central or state government, ministers or statutory bodies.
iv. Copy of Passport, electricity bill, latest bank statement, latest landline bill are considered to be a valid address proof.

What are EMI options does company offer?

An applicant may pay the EMI either through ECS (Electronic clearing system) auto debit or through post-dated cheques (majorly PDC) for the entire loan payment term.

If i have an existing loan, can I avail another two-wheeler loan?

Yes, you can avail another two-wheeler loan. But, the approval of the loan application entirely depends on your previous loan handling and existing credit score.

Can I get the money refunded, in case I have paid excess payment?

Customer can always interlock with the branch and request for refund. Upon successful verification of customer’s credentials, the excess amount will be refunded to the customer.

Can I sell my two-wheeler during the loan instalments?

No, you cannot sell your two-wheeler prior to loan completion. But, in view of genuine reasons, the NOC (No objection certificate) is required from the financier before one decides to sell off the vehicle.

What is mutual fund?

A mutual fund is an investment fund that is professionally managed. It pools money from many investors to purchase securities. Here both advantages and disadvantages, are linked with Mutual funds compared to direct investing in individual securities.

What is Offer document?

This is a formal document that describes about the features of the fund. It contains the fund’s objective and the asset classes in which the investment will be made by that fund. It also describes the terms and conditions and other details.

What is Net Asset Value?

This refers to the per unit price of the fund. This price keeps on changing on the basis of the performance of the fund.

What are Entry Load / Exit Load?

When investor purchases/ sells the units, the asset management company charges him some amount on the investment/ selling amount and these charges are known as entry/ exit load.

What is Expense Ratio?

This ratio indicates the expenses incurred by the fund in relation to the total assets managed by that fund.

What are the advantages of making investment in mutual funds?

i. Risk Diversification
ii. Professionally managed
iii. Regulated investments
iv. Tax benefits
v. More liquid investment

How many ways to make investment in mutual funds?

There are two ways:

i. Direct scheme
ii. Regular Scheme

What are the benefits of investment through online portals?

i. Easy comparison: there are number of online web portals for these financial services which provide the information on multiple schemes of different funds and it acts as single-point portals for viewing and comparing the schemes.

ii. Convenience: As every information is provided through online portal so one can apply for the Schemes from own office or home comfortably.

iii. Independence: All information like offer document, brochures and other material, are available online for easy perusal. This makes investors aware of any misleading information by agents and helps them in forming independent decisions.

What are Open-Ended Funds?

Open – ended funds are those funds in which buying and selling of units can be made at any time. As these funds provide easy liquidity they are mostly preferred by the investors.

What are Close-Ended Funds?

Those funds in which units can be purchased only during the initial purchase offer period and can be redeemed at a defined maturity date.

What is Loan against Property?

Loan against property is a loan that is taken by mortgaging the property. Lender mortgages the property and then provides the loan.

For what purposes can LAP be used?

You can use the loan amount for any purpose. There is no restriction on end use of amount you get from Loan against property.

How much money will I get as loan against property?

Loan amount generally depends on various criteria. Primarily it is based on the value of property and the on the income, age and your repayment capacity.

Can loan against property be availed jointly?

Yes you can avail Loan against property in India by including co-applicant. You can apply with your spouse as a co-applicant. If the property is jointly owned then it is a restriction that all the coowners of property should be co-applicant.

What charges are there for processing loan against property?

Charges for processing loan against property are different from on bank to other bank. In general these charges revolve around 1-2 % of your loan amount.

What is the rate of interest?

Rate of interest generally varies from bank to bank. Usually these rates start from 10% and goes onwards on case to case basis.

For how much period loan is available?

Usually Loan against property is not available for more than 15 years.

How can I repay loan amount?

You can repay your loan amount in various modes. You can issue ECS debit mandate or by cheque etc.

What will be the security for loan against property?

As the name of loan tells that, your property will be the primary security and will be mortgaged by bank and will be cleared after the payment of your all dues.

Can I prepay my loan?

Yes you can prepay your loan amount if you have arranged such funds. Generally there are no prepayment charges but it totally depends on banks.

Should the property be insured?

Generally it depends on the bank. You have to take care that your property is insured for fire and other damages.

When to apply for a home loan?

If you have decided to construct or purchase a property then you can apply for home loan in India. It is not required to identify the property. You can apply online via Afinoz even if property is not selected.

How to apply for home loan?

You have to visit Afinoz.com and by following simple steps you can easily apply for home loan.

What is EMI?

EMI is equated monthly installment. It is the amount that you repay to your bank against the loan borrowed. It includes the principal amount and interest portion also.

What is the meaning of Market Value of property?

Market value of property refers to that amount that can be generated by selling the property in open market as per the applicable terms and conditions of market.

What is the meaning of own contribution?

Own Contribution means the amount that you have to pay to buy the property after excluding the loan amount.

Are there any tax benefits in availing home loan?

Yes there are certain tax benefits as per applicable rules of Income tax act 1961. You can get deduction for the interest portion you repay as well as for the principal portion also subject to the applicable rules.

What will be the security for availing home loan?

Generally banks mortgage your property as security. You can also provide any other collateral as and when required.

When do repayment of loan starts?

Repayment of principal portion starts after the final disbursement of your loan amount. Meanwhile bank only charges interest portion on the amount of disbursement.

How can loan be repaid?

There are multiple ways to repay the loan amount. You can issue ECS mandate or post dated cheques or regular cheques etc. as per your convenience.

Can prepayment of loan be done?

Yes you can prepay your loan if you have sufficient amount. Generally banks don’t charge for that but still it depends on the prevailing terms and conditions.

which factors are considered for determining the eligibility for education loan?

Following factors are considered:

• Student’s Academic background
• University and Type of course for which education loan is applied for
• Collateral is offered or not. If offered then what Type of collateral offered.
• Job profile of the co-borrower of loan etc.

Which documents are required for availing education loan?

To avail the Education loan, following documents are required along with the application form:

• Proof of residence
• Proof of identity
• Mark sheet of last qualifying examination for school and graduate studies in India
• Admission Proof
• Course expenses structure
• Scholarship confirmation letter’s copy, if any.
• Foreign exchange permit’s copy, if applicable.
• Photographs-2
• Last 6 months bank statement.

Is there moratorium/repayment holiday available in case of Education Loans?

Yes. A moratorium/repayment holiday is available in case of education loan.

As there is a moratorium period in education loan, how will repayments be determined?

For calculation of repayments the interest of the moratorium period which is outstanding will be added to the loan amount at the time of commencement of the repayment. The EMI will be determined on this amount at the time the repayment is to commence.

For how long one can avail the Education Loans?

One can avail the education loan for maximum of following tenures;

For loans upto Rs. 7.50 lacs - upto 10 years
For loans above Rs. 7.50 lacs - upto 15 years

How EMI is calculated?

EMI is known as Equated Monthly Installments and it includes both component i.e. principal and interest. EMI is calculated using rate of interest and repayment period of time which you choose.

Is there any requirement of co-applicant?

Yes Co-applicant is required for full time courses?

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