Personal Loan

Banks ask for your salary slip and form 16. Based on your net take home salary and other EMI
obligations, loan is sanctioned. Tenor of the loan can be maximum 5 years. If you are working with
government or any reputed firm it can be extended.

Apart from the rate of interest banks also charge some fees which are usually of two types. Once when you are applying for the loan and once when you are pre-closing the loan. The fees when charged at the time of processing called as Processing Fees vary from 2-3% of the loan amount. This could be reduced if you have the ability to bargain. the second charge is the prepayment penalty paid at the time of pre-closure. This too varies from 2 – 3 %. Similar to processing charges, you can also try to get this fees reduced.