The borrower is required to fill out an application for, specifying accurate details asked, like occupation, purpose of application, income, etc. After the application is made, the lender is required to verify and process it, after which the fund is disbursed. It has to be repaid following specific well-informed terms, mostly through EMIs, over the repayment tenure.

The maximum loan amount securable by someone depends on their income and occupation. In India, up to 40 lakhs can be secured.

Prepayment is paying money towards one’s loan, irrespective of EMIs. It helps in cutting the interest rate, shortening the tenure, and lets one pay off their loans faster.

The minimum monthly income requirement might vary from lender to lender. However, the average has been fixed at INR 15000-25000 for most lenders to be eligible to apply for personal loan.In case of metro city dwellers, the minimum income requirement might be INR 20,000.

Although one’s fixed monthly income is a major determining factor in their loan eligibility, it is not the only one. Lenders will look at their credit score, repayment capacity, check for any other outstanding loans they might have before deeming them credible for a loan.One could find out about it through the personal loan eligibility calculator.

In order to cancel a loan after it has been sanctioned, the borrower would need to make an application to the lender, informing the same, and the sanctioned loan can be cancelled, if not disbursed. However, after disbursement, most lenders will not allow the borrower to cancel it. It can be pre-closed or transferred to a different bank or financial institution, in case of high interest rates on an outstanding loan amount.

Lenders normally allow borrowers to prey-pay or pre-close their loan, with a nominal charge. However, they have to be informed in advance of the same. It is important to remember that most lenders will only allow a borrower to do so after 1 year of taking the loan.

Lenders often allow a pre-closure of loan only after 12 EMI instalments, with an additional foreclosure charge and GST on the outstanding amount.

The frequency of repayment depends on the lender of your choosing. There is usually a monthly repayment pattern.

Repaying loan can be done easily and from anywhere. There are a few options one can choose from:

• a. Electronic Fund Transfer
• b. Via Cheque
• c. Paying money at a branch specified by the Lender
• d. Automatic deduction from account

A credit score of 700 is usually considered good by lenders, allowing one to secure a loan. However, a score of 800 or above will help one get better repayment options and interest rates from a lender.

Standard Instructions (SI) are instructions left by a customer to their bank, to pay their money to another account at regular specified intervals, or a one-time payment, as per directions. The designated some is then debited from the payee account and sent to the requested account.

One can apply for both at the same time. However, it would depend on their credit score, income and ability to pay the EMIs for both

There are certain lenders that might allow a loan with a low credit score and no checking accounts, like payday loans. However, they have very high interest rates.

In case one fails to pay an instalment of their personal loan EMI, an additional penal interest is charged on the outstanding amount, by their lender. For most, it is around 2% or 3%.

Yes, one can. After a certain period post loan disbursement, one can make a part payment which will be deducted from the outstanding sum and help pay the loan off faster.

A pre-approved loan is one where the applicant is not required to go through the usual documentation and verification process, owing to their good relationship with a lander, either their long standing customer status or clean repayment records.

An application might stand rejected if:

• - The applicant has applied for a loan that he/she does not qualify for.
• - The applicant fails to provide valid required documents to secure the same.

It is advisable to apply for loans online. The process is fast, easy and hassle free and also helps maintain the social distancing norms put in place by the Government of India.