Personal Loans are those special loans which are offered by various banks to cater to diverse and miscellaneous needs of an individual. Both secured and unsecured loans are provided by the different banks to its customers who share a very good relation with the bank. The main purpose for which a bank issues a personal loan is to take care of all the personal needs and expenses. There are various types of personal loans which are gaining much popularity in the recent times. All types of personal loans are provided to the customers at a very attractive rate of interest.
Personal loans can be of different types. They are as follows:
Festival Loans: Both the banks in private as well as public sector issues festival loans during different festivals throughout the year. These loans generally do not charge an exhorbitant rate of interest.
Consumer Durable Loans: These are specific loans which can cater to the different needs of a customer like buying a refrigerator, washing machine or a music system. These types of loans are mostly taken during special festivals.
Personal Computer Loans: Today with the advancement in the technology there is a need for computer in every home. So almost all the banks provide this type of special loans to meet the requirements of the customers.
Pension Loans: Pension Loans are offered by various banks to meet the personal expenses of the pensioners till the age of 70. The maximum amount of loan sanctioned is the 7-10 times of the last pension received.
Marriage Loans: Such types of loans are availed under the personal loans category and are issued by almost all banks. These types of loans are gaining popularity in both the rural as well as urban areas.
The application process of personal loans is also very easy and the indivdual or the professional or the company can apply by simply filling up the application form. The documents that are required for the approval of personal loans are different in case of self employed professionals and salaried individuals. The requirements for a salaried customer are application form with photograph, the latest salary slip, Form 16, residence and identity proof, the bank statement of last 6 months, processing fee cheque. The requirements of the business men vary by only 6 documents that is the proof of educational qualification, proof of business existence with the complete business profile and last three years income tax return, personal and business bank statements of the last three months and the income statement, proof of continuation, balance sheet of the last three years and other mandatory documents. Rest of the documents remains the same. All the banks that provide personal loans include HDFC Bank, Bank of India, IDBI Bank, ICICI Bank, State Bank of India, Standard Chartered Bank, Bank of Baroda, Development Credit Bank, Citibank, Union Bank of India and UCO Bank. The terms and conditions may vary from bank to bank. To sum up personal loans provide great relief by catering to the personal needs of the customers.