Question 1

What is a personal loan?

Accepted Answer

A personal loan is an unsecured loan provided by financial institutions, which can be used for various personal expenses, such as consolidating debt, financing major purchases, or covering unexpected expenses. Unlike secured loans, personal loans do not require collateral.

Question 2

How does a personal loan work?

Accepted Answer

A personal loan is offered to you on the basis of your creditworthiness for the lump sum amount. After meeting your needs, you can repay the loan in equal instalments.

Question 3

When should I borrow a personal loan?

Accepted Answer

Apply for a personal loan when you need a large sum of money for situations like renovation, wedding, medical emergency, etc.

Question 4

What can I use a personal loan for?

Accepted Answer

You can use a personal loan for anything. If you need money and don’t know where to get a lump sum amount, apply for a personal loan. This way, you can meet your needs and repay them later.

Question 5

What is the maximum personal loan amount that I can borrow?

Accepted Answer

The maximum amount you can borrow will depend on how much your monthly income is. If you have a high income, your loan limit will be high as well.

Question 6

Do I need to pledge any assets/collateral to apply for a Rupyy personal loan?

Accepted Answer

No, you don’t need any assets to pledge when applying for a Rupyy personal loan. We provide paperless, quick personal loans without any collateral.

Question 7

What is the personal loan application process?

Accepted Answer

The application process typically involves the following steps:

Visit Rupyy.com on your smartphone or tablet
Go to the ‘Loan’ tab and select ‘Personal Loan’ from the dropdown
Enter your mobile phone number and check available offers in 15 seconds
Choose the loan offer you find attractive and submit the necessary documents
Await approval and review the loan terms.

Question 8

What are the benefits of a personal loan?

Accepted Answer

Benefits of personal loans include:

No collateral is required
Fixed interest rates and monthly instalments
Can be used for different needs (debt consolidation, travel, medical expenses)
Lower interest rates compared to credit cards

Question 9

Can I apply for another loan when I already have a personal loan?

Accepted Answer

Yes, you can apply for another loan while having an existing personal loan. However, we will assess your creditworthiness, including your current debt obligations and credit score, to check your eligibility for a new personal loan.

Question 10

What is the minimum credit score for a personal loan application?

Accepted Answer

The minimum credit score to qualify for a personal loan changes based on your lender. To maintain a healthy credit score and get approved for a personal loan ensure your credit card and loan debts are paid.

Question 11

How to get an urgent loan with a bad credit score in India?

Accepted Answer

To secure a loan despite a bad credit score in India, borrow a secured loan. With this type of loan, you can avail of a loan based on your repayment capacity and collateral value.

Question 12

Is there a specific list for personal loan documents?

Accepted Answer

Yes, the specific documents required may vary by lender, but generally, you should prepare with:

Proof of identity (Aadhaar Card, PAN Card, Voter ID Card)
Proof of income (salary slip, bank statement, form 16)
CIBIL report

Question 13

What are the basic personal loan requirements?

Accepted Answer

Basic requirements usually include:

A minimum age (typically 18 or above)
A steady source of income
A valid ID proof
A decent credit score (requirements vary by lender)
A permanent residence status

Question 14

What is the personal loan eligibility for salaried people?

Accepted Answer

Eligibility for salaried individuals generally includes:

Indian citizen
Currently working
Regular income
Decent credit score

Upon meeting the above criteria, salaried people can apply for personal loans.

Question 15

What is the minimum salary to apply for a personal loan?

Accepted Answer

The minimum salary requirement varies by lender but typically ranges from Rs. 20,000 to Rs. 30,000 per month. Some banks may have specific thresholds based on your location. At Rupyy, you can check your loan eligibility based on your income.

Question 16

What are the tax benefits of a personal loan?

Accepted Answer

There are no tax benefits on personal loan repayments. However, if you’ve borrowed money for home renovation, you are eligible for deduction under Section 24b of the Income Tax Act, 1961. You need proper receipts and documentation to prove the loan is used for home renovation.

Question 17

What is the minimum processing fee for a personal loan?

Accepted Answer

Banks and NBFC charge a processing fee when your personal loan is approved. This amount is around 1%-2% of the approved loan amount. A minimum processing fee of a personal loan will depend on the amount you’ve borrowed.

Question 18

Can I apply for a personal loan without documents?

Accepted Answer

Yes, you can apply for a personal loan without going through any paperwork. With Rupyy, you just need to upload your documents in a soft copy, and the loan application will get accepted for review.

Question 19

Can a personal loan be foreclosed?

Accepted Answer

Yes, a personal loan can be foreclosed. The foreclosure option is there to help you when you close a personal loan early. Most lenders allow borrowers to foreclose their personal loans.

Question 20

What is the penalty for the preclosure of a personal loan?

Accepted Answer

The penalty for preclosure of a personal loan varies by lender. Many banks and financial institutions charge a fee from 1% to 5% of the outstanding loan amount. It’s important to check this before requesting a foreclosure.

Question 21

What is the RBI rule for foreclosure?

Accepted Answer

The Reserve Bank of India (RBI) has guidelines that require lenders to clearly mention the terms related to foreclosure in the loan agreement. This includes any penalties for early repayment.

Question 22

Does foreclosure affect CIBIL score?

Accepted Answer

Closing your personal loan before the end of your tenure won’t impact your CIBIL score. There is no negative impact on your credit report when you foreclose a personal loan. So, don’t worry about it when closing your loan.

Question 23

How is the foreclosure amount calculated?

Accepted Answer

Let's take an example to understand how foreclosure amount calculated:
Initial Loan Amount (Principal): ₹3,59,000
Interest Rate: 10% p.a.
Tenure: 12 months
Instalments Paid: 6 EMIs (let's assume ₹27,000 paid towards principal through these EMIs)

Step-by-Step Calculation:

Outstanding Principal: ₹3,59,000 - ₹27,000 = ₹3,32,000
Outstanding Interest: ₹16,600
Foreclosure Charges: ₹3,320 (assuming 1%)
Total Foreclosure Amount: ₹3,51,920

Question 24

Is it necessary to pay foreclosure charges?

Accepted Answer

Yes, it is necessary to pay the foreclosure charge when closing your loan. The lender charges this fee to compensate for the interest payment loss due to early loan repayment.

Question 25

How do you avoid personal loan foreclosure charges?

Accepted Answer

Banks like ICICI don’t charge a foreclosure fee when you close your loan after 12 EMIs. So check with your lender and see if there are any terms and conditions like this.

Question 26

How much time does it take to close a personal loan?

Accepted Answer

The foreclosure process will take 7-14 days, but the actual time may vary depending on your lender. Upon closing your personal loan, collect the no-objection certificate (NOC) to ensure you won’t face any difficulties later.

Question 27

What is the procedure to prepay my personal loan?

Accepted Answer

For prepayment, visit the nearest branch of your lender and carry the following documents with you:

Foreclosure request letter signed by you
PAN Card
Cash, cheque or demand draft (depending on the mode of payment)

Question 28

How to use a personal loan EMI calculator for foreclosure?

Accepted Answer

Before you decide to close your loan, check how much you will save from it. To do so, use the personal loan calculator and compute the remaining interest you have till now. This is the amount you are saving by closing the loan.

Question 29

What personal information do I need to provide when applying for a personal loan?

Accepted Answer

When applying for a personal loan, you'll typically need to provide your name, address, mobile number, income information, and employment details.

Question 30

How do lenders protect my personal and financial information?

Accepted Answer

Most lenders use encryption, secure servers, and compliance with data protection regulations to safeguard your information during the application process. This ensures that your information is kept confidential and protected from unauthorized access.

Question 31

What should I do if I suspect my loan application has been compromised?

Accepted Answer

If you suspect that someone has used your information to borrow a loan, contact the lender and immediately block the loan. And file a police report to secure yourself from identity theft.

Question 32

Are there any risks associated with applying for personal loans online?

Accepted Answer

Yes, risks include sharing information with untrustworthy sites. Always ensure that the lender is legitimate, uses secure connections (look for HTTPS), and the lender's reputation.

Question 33

How does a lender use my credit report when I apply for a loan?

Accepted Answer

Lenders review your credit report to assess your creditworthiness, including your credit score, credit history, and outstanding debts. This helps them decide whether to approve your application.

Question 34

Can I opt out of having my information shared with third parties?

Accepted Answer

Yes, many lenders allow you to opt out of having your information shared with affiliates or third-party marketers. Always check the lender's privacy policy for more details.

Question 35

What steps can I take to protect my personal information when taking out a loan?

Accepted Answer

Protect your information by using secure passwords, avoiding public Wi-Fi when applying, and regularly monitoring your credit report and accounts for suspicious activity.

Question 36

What is the process for resolving disputes or errors in my loan application?

Accepted Answer

If you find an error in your loan application, contact the lender directly to discuss the issue. You may also want to inform credit bureaus if it's related to your credit report.

Question 37

How long do lenders keep my personal information on file?

Accepted Answer

Lenders typically retain your personal information for a specific duration as outlined in their privacy policy, often ranging from a few years to indefinitely in some cases for record-keeping purposes.

Question 38

What are the consequences of providing false information on a loan application?

Accepted Answer

Providing false information can lead to loan denial, legal consequences, and damage to your credit score. Always ensure that all information provided is accurate and truthful.

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