How to get a Personal Loans from Bank or Non-Banking Financial Company | Layman Loans

1. What is a Non-Banking Financial Company (NBFC)?

Hi everybody this is layman loans good to connect with you in this video in this video we’ll be analyzing on what is a personal loan who can value a personal loan what will be the limit and can you get a personal loan so first of all what is a personal loan personal loan is actually a loan which does not have any collateral that’s a personal loan okay and

Personal loan is applicable only for salaried employees what is a collateral okay collateral is anything you pledge you hypothecate with the bank so all these are very complicated terms right hypothecate pledge collateral seriously so that is the reason we are here at layman loans to make things easy and hassle-free for you to understand what are all these

Terminologies and how can you get access to funds easily through proper sources like banks and nbfcs okay so first of all personal loan is given only for salaried employees you have to be an employee working in a company and getting a monthly salary there are so many people who have their own business they are self-employed or freelancers or directors business

Owners all these categories of people do not qualify to avail a personal loan why so because personal loan a bank or nbfc which is a non-banking company wants to ensure that whatever money you’re getting whether you are getting consistently on a monthly basis like a salary or typically actually a salary so what they see is you need to produce a three months pay

Slip along with a bank statement for one year and they will check your civil score so what’s a simple score simple score is something which is like a score card given by banks and in financial institutions for you to describe that you are a prompt loan player so basically you pay loans on time and your repayment schedule is always intact if you have something like

That then your simple score will be sky high it will be like more than 700 or so and your ability to get a loan is much easier especially a personal loan is much easier in case you have missed few emis that is equated monthly installments that is your monthly due if you had missed in any of your loans any of the emis if you had missed for your previous loans then

That will severely impact your civil score and if your civil score gets impacted that is going to impact your eligibility to get future loans so especially personal loan is a little tricky to get because you are not actually giving any asset in the case of a home loan a bank has an actual home an actual house as a collateral which is always much higher than the

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Loan they disperse assume they’re giving a loan for 50 lakhs they’ll always ensure the home value is minimum 70 to 80 lakhs so they will fund roughly around 70 to 80 percent of the value of the property so still there’s a question of 20 percent where if in any case you fail to pay the loan they can always sell the property or the asset and liquidate it to get the

Funds back but in the case of personal loan you have been awarded the loan only based on your previous track record and by mutual trust so the only deciding factor is whether you are getting monthly salary promptly and what is the amount you’re getting so if you want a personal loan minimum you should be in a company for six months so if you are just joining

The company you might probably not be eligible for a personal loan because they will see a track record of your salary getting credited consistently the higher the number of years you are associated with the particular company the higher is the trust factor that monthly you are able to get so and so salary on so-and-so date so it should not be like assume you’re

A freelancer or working for a small firm and your payments are distributed resume monthly you make a gross income of seventy thousand but one date you make ten thousand another day you make five thousand and like a freelancer your payments are split but on a monthly basis you make around 70 000 still you will not be really eligible for a personal loan because

You are not working for a single institution and you are not getting your salary credited on a monthly basis consistently so first things first person loan is available only for sale rate employees second your salary should be minimum 15 000 rupees per month or above that okay ideally more than 18 000 rupees or 20 000 rupees only then you will be eligible for

A personal loan and usually personal loans are rather short term so you can get a home loan for even 30 years you can get a mortgage loan for even 25 years but you can’t get a personal loan for even more than five years usually personal loans are given on a short term basis one year three years a maximum five years and your rate of interest is also slightly

Higher you can get a home loan for like 7.58 percent but a personal loan will be more than 12 13 can go as high as 18 19 percent per annum also all right the reason is very simple there is no asset involved in banks or nbfc’s terminology when there is an asset attached with your loan the ability to re recollect the loan is much higher and there is an assurance

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That in case of any default they can always liquidate the asset but in the case of a personal loan there is no way they can actually liquidate any asset because there is actually no tangible asset associated i’m sorry for the dog bark so okay coming back personal loans there are no tangible assets associated all right so for this very reason your rate of

Interest is slightly higher and there’s a processing fee as well what is the processing fee the bank charges a small fee may be a one percent or 0.5 percent of the total dispersed amount or the total loan sanctioned amount as a processing fee this they might collect before they even sanction the loan or they might even collect after sanctioning loan at the time of

Disbursement so there is a processing fee and on top of it the rate of winter is also slightly higher and you can’t take a personal loan for several crores or like more than 30 lakhs 20 lakhs and it’s almost very difficult usually personal loans are in the ticket size of 1 lakh to 5 lakhs so even getting a 10 lakhs personal loan is next to impossible because your

Your monthly salary should be so high that you are eligible for 10 lakhs or 15 lakhs person loan usually if your salary is like any other normal common man like 30 40 000 50 000 mostly you will be eligible for three to five lakhs of personal law provided you don’t have too many other loans in case you already have a home loan or a car loan on a bike loan and your

Overall repayment capacity is saturated that is you have enough loans and emis to pay and you don’t have the bandwidth to pay for the dmi’s then probably you will not be eligible for a personal loan at all you might even get eligible for a loan against property or a home loan but for a personal loan they will be really really careful because actually there is no

Tangible asset all right so coming back who can avail a personal loan personal loans are available for personal reasons assume you have a marriage expense you have a travel expense any specific reason where you have a personal commitment to be fulfilled then you can take a personal loan most important caution do not take a personal loan and start a business do

Not take a personal loan or a credit card loan and invest in any shares or companies or in a business totally wrong because you will end up paying interest for your personal loan you will end up paying interest for your credit card loan on top of it any legitimate business takes years to mature and start giving you fruits you are not going to make a lot of money

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Initially in any business because you have to put in efforts and the revenue what you generate out of any business will be just enough to make it running so do not make your cost higher if you commit on a very high rate of interest loan and if you believe that you can take a huge personal loan and then make a lot of money by doing some business and then clear

All those loans then i think it’s probably completely wrong you will have to always make a calculated move personal loans have to be got only when you know when you can repay the entire loan and it should always be on a short term basis take loans on a long term three to five years tenure but try to pre-close it within one to two years and if possible ask your

Manager that they can wave off any pre-closure charges so what is the pre-closure charge so if you try to close a loan which is a five years tenure or three years a year if you try to close it within six months or one year then the ability of the bank to charge you interest over that period gets reduced so the net revenue you generated to the bank is drastically

Reduced for this very reason they will charge a three to four percent pre-closure charge for you if possible please negotiate with your banker that do not charge a pre-closure fee for me there are several banks which offer personal loan without any pre-closure charge or there’s something called as lock-in period what is the lock-in period minimum you need to pay

The loan for one year so something like that that can be a lock-in period of one year or two years so if there is no lock-in period and there is no pre-closure charge then it’s an absolutely safe bet for you to go for that personal loan and provided you clear all the eligibility criteria’s you are guaranteed to get one so in case you’re looking for a personal loan

Feel free to fill up the google form mentioned in the comments and description and we’ll be more than happy to guide you and help you procure a loan from your favorite banker or nbfc thanks a lot for watching this video do subscribe like and share this video looking forward to connect with you in the next video you

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How to get a Personal Loans from Bank or Non-Banking Financial Company | Layman Loans By Layman Loans