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Personal Loan FAQ's.

Getting Started

Frequently Asked Questions

An unsecured borrowing, the term Personal Loan implies an amount of money borrowed for a variety of purposes. This multi-purpose loan has no end-usage restrictions, and can be used to consolidate debt, pay for home renovation, organize a wedding, or any other purpose the borrower deems fit. The borrowing has to be repaid over a period with interest along with other fees and charges.

Personal Loans are collateral-free unsecured loans offered by almost all Banks and NBFCs, and are approved within 24 hours to 7 business days. These funds are multi-purpose loans without end-usage restrictions, and thus can be used for varied purposes ranging from emergencies to vacations. Easy documentation and quick approval makes these collateral-free loans easy to avail and hassle-free in times of need.

Most Banks and NBFCs offer you a personal loan amount to the tune of Rs. 25 Lakhs as an individual after a check on your age, employment, income, and creditworthiness. In case, you are a salaried person, you may be allowed to apply for a loan amount up to 20 times your monthly income at your lender's discretion.

Experts recommend a credit card for short-term debt. On the other hand, a personal loan proves more suitable for longer repayment tenures. Depending on your requirement, go for a home loan when you are ready to buy a house. A personal loan proves useful when you require extra cash. Personal loans and Credit Cards are unsecured forms of credit, while you mortgage your house when you avail a home loan. Depending on your need, check your loan value, loan tenure, interest rate, processing fees, and hidden charges offers before you decide on a Personal Loan, a Home Loan, or a Credit Card.

Approval of your Personal Loan depends on your lender. You personal loan approval in terms of time however depending on your lender may be approved instantly within 24 hours or may take up to 7 business days based on your credit score.

Apply for a personal loan in the following manner.

  • Decide the Exact Amount to Borrow
  • Use a Personal Loan Eligibility Calculator
  • Calculate Your Credit Score
  • Check your Documentation
  • Fill out the Personal Loan Application Form
  • Submit Relevant Documents
  • Lender Verification of Documents
  • Assessment and Approval
  • Disbursal of Loan Amount into your Bank Account

There are options from financial institutions for co-applications for Personal loans. However, just about anyone cannot become a co-borrower. Depending on your lender, you can co-apply jointly with your spouse, parents, or siblings.

Ruloans offers in association with well-known Banks and NBFCs Personal Loan tenures ranging from 1 to 5 years or 12 to 72 months. You choose your loan period according to your repayment capacities to suit your needs.

Yes, You can apply for personal loan online with Ruloans Easy Application Process. Apply for Instant Personal Loan now[link]

The possibility of getting personal loans from banks depends on eligibility criteria, and your creditworthiness as decided by your lending banks. Should you prove your eligibility in accordance with the terms and conditions of the bank, and should the bank find you worthy of credit, you will not be denied a loan in the shortest period.

Other than banks, Non-Banking Financial Companies or NBFCs too offer personal loans at attractive rates of interests additional incentives. Provided you fulfil eligibility criteria, you can apply for a personal loan from any of Ruloans' Partner NBFCs.
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Eligibility Criteria & Calculator

Frequently Asked Questions

Ordinarily, a lending institution will offer you a personal loan if you are aged between 21 to 65 years of age. Depending on the lender, a salaried person aged up to 60 years, and a self-employed person aged up to 65 years may avail a personal loan.

When you apply for a personal loan, lenders check your willingness and ability to repay in relation to your credit history as a measure of your willingness to return the loan amount, and your income as a benchmark for your ability to repay. Here are a few reasons for loan rejection.

  • Credit Score
  • FOIR
  • Income
  • Inaccuracies

A high credit score of 750 or more gives you the ability to avail any sort of loan. However, a credit of lesser than 550, may lead to rejection or higher rates of interest on Personal Loan. Personal Loans are unsecured forms of credit, and as such are more risk oriented than other types of loans. Low scores indicate higher risks, and vice versa, depending on your lender's policy.

Eligibility Criteria for Personal Loan
  • Age
    • Salaried: 21 to 60 years
    • Self Employed: 25 to 65 years
  • Minimum Income
    • Salaried: Rs. 15,000 Net per Month
    • Self Employed: Rs. 5,00,000 Gross per Year
  • Minimum Work / Business Experience
    • Salaried: 2 years with at leat 2 years in Current Organization
    • Self Employed: 1 years Business Vintage
  • Credit Score
    • Salaried: 750+
    • Self Employed: 750+

For more details check Personal Loan Eligibility Criteria & Calculator[link]

Ruloans has many options to choose from, to avail a personal loan. Check out the offers by various banks based on the below mentioned criteria, and select the best option according to tailor-make and suit your needs. Check with your own bank however for the pre-approved offers, since a good relationship with your bank will negotiate for you the best terms and conditions.
  • Loan Amount
  • Loan Tenure
  • Interest Rates
  • Minimal Documentation
  • Processing Fees
  • Hidden Charges

A personal loan can help raise your credit score when repaid in time. A personal loan may not be bad for your credit score, but may affect your overall score over a short period in which obtaining a new loan may be difficult until repayment. Paying of a personal loan in time helps build your credit score positively.

When you avail a personal loan approved by a guarantor, you generally pay a higher rate of interest on you loan due to the higher risk of lending. A lender will require a guarantor of you in the following circumstances.

  • Poor Credit Score
  • Inconsistent Source of Income
  • High Risk Perception

You need to satisfy your lender with the following conditions to be eligible for a personal loan without a guarantor.

  • Good Credit Score
  • Stable Income Source
  • Apply with a co-applicant

Therefore, you should always aim for taking a personal loan without a guarantor.

A low credit score does not guarantee approval of a personal loan. However, despite your low score you may find a lend willing to offer you a personal loan for a higher rate of interest and restricted terms and conditions.
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EMI Calculator

Frequently Asked Questions

The term Equated Monthly Income or EMI refers to a fixed amount of money paid by a borrower to a lender at a pre-agreed date every month. An EMI includes both the interest and the principal amount payable each month over a specified period until you pay off your Personal Loan completely. Other than Personal Loans, Home Loans, Business Loans, Loans Against Property, Car and Auto Loans, and some other types of loans accept this method of loan repayment.

Your Loan EMI depends on three factors.

  • Loan Amount or Loan Value
  • Rate of Interest
  • Loan Tenure or Period of Loan

Use the following mathematical formula to calculate you EMI.

EMI = P x r x ( 1 + r ) n / [ ( 1 + r ) n - 1 ]

Where,

  • P = Loan Amount
  • R = Rate of Interest
  • N = Loan Tenure in Months

Ruloans' Personal Loan EMI Calculator has three form fields for you to enter the data required to calculate your personal loan EMI. Personal Loan Amount, Rate of Interest, and Loan Tenure in Months. You don't need to manually key in the day, simply move the slider to the preferred values. Three types of numeric results will appear simultaneously as you move the sliders. The results are as follows.
  • Loan EMI
  • Total Interest Payable
  • Total Payment (Principal + Interest)

Benefits of using Ruloans' Personal Loan EMI Calculator are as follows

  • Ease of Access

    You have easy access to Ruloans' Personal Loan EMI Calculator online from almost anywhere provided you have a desktop, laptop, tablet, or smart phone at your disposal.

  • Effortless Process

    You don't have to key in the preferred numerical figures. The calculator has sliders that require to be moved to the preferred figures from the given range to make the process of calculation an effortless process in real time.

  • Saves Time

    Using a calculator or calculating manually may turn out to be tiresome and time consuming process, and the results may sometimes be erroneous. The Ruloans Calculator slider method saves you a lot of time.

  • Accurate Results

    The Ruloans Calculator functions on proprietary computerised algorithms designed to give you accurate and precise results simultaneously.

  • Helps Plan Better

    With results in the form of Loan EMI, Total Interest Payable, Total Payment (Principal + Interest), you have all the help in the world to plan your loan better.

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Interest Rate & Processing Fees

Frequently Asked Questions

You avail lowest interest rate of 10.40% on personal loans at Ruloans.

The following are the factors used to calculate rate of interest on your personal loan. Lenders calculate your interest rate after putting together and evaluating all these factors.
  • Credit Score

    Your credit score reflects your creditworthiness. Good credit score deserve better rates of interest and vice versa.

  • Principal Amount

    You lender offers you an interest depending on your principal amount after considering your repayment history, and other criteria.

  • Loan Tenure

    Typically, shorter loan tenures deserve better rates of interest, while longer repayment periods are awarded higher interest rates.

Some major factors that affect your personal loan interest rates are as follows

  • Income

    Your personal interest rate depends much on your income, which indicates your loan repayment capacity. People with high disposable incomes have greater repayment capacities, than those with lower incomes. Lenders prefer high and stable disposable incomes for lower rates of interest.

  • Credit Score

    Credit Scores are important eligibility criteria, since these three-digit scores reflect the measure of your creditworthiness. These figures are calculated after considering your credit report, which keeps records of your financial health including transactions, debt, and credit behaviours. Higher credit scores encourage the trust of your lender in you, which makes for lower interest rates.

  • Employer's Status

    A lender looks for stability in the borrower employer, since a borrower employed with a good and stable employer assures job stability and income stability. Borrowers working for well-known companies and MNCs are preferred. Long-term stability in an employer's status calls for lower interest rates.

  • Debt-to-income Ratio

    Your Debt-to-income Ratio happens to be the ratio of your total debt payments divided by your total income. If major part of your salary goes in to clearing debt payments, the lender might choose to offer you higher interest rates, as your debt to income ratio indicates higher risks. In short, higher the debt burden, higher the rate of interest on your loan.

  • Lender Relationship

    Should you have a long-standing relationship with your lender, expect better rates of interest on your loan.

  • History of Defaults

    Histories of defaults are another reason why a lender considers you a high-risk borrower. To cover a high-risk borrower, the lender will at first offer a high rate of interest, or might even reject the loan application. Lenders prefer customers with zero defaults over a past 12 months credit history.

Your lender decides you rate of interest depending on credit history, income, loan amount, loan period, and other factors. You repay your loan amount over the loan tenure by dividing the interest per annum over the period of your loan payable monthly. A portion of each payment goes towards repaying the borrowed sum, and another goes towards paying off the interest charge.

When you repay a total personal loan, you repay the entire personal loan amount along with interest charges, processing fees, and other applicable charges.
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Documents Required

Frequently Asked Questions

As a mandatory obligation by tax laws, most financial institutions will require you to submit your PAN Card for a Personal Loan as per guidelines. Depending on your lender, this rule may be relaxed if you are looking for a loan of lower than Rs. 50,000.

Generally, your personal loan will be sanctioned if you possess at least two years of work experience, employed with the current employer for one year. Likewise, as a self-employed professional you will have to show a minimum of 3 years of experience for personal loan approval.

While assessing your personal loan application, Form 16 gives your lender a complete breakup of your salary and tax liabilities. You are required to submit this document when applying for a personal loan.

With the introduction of the digitalized Aadhaar Card in to the system, applying for a personal loan online has become easier. Most Banks and NBFCs accept an Aadhaar Card as a proof of identity, birth, address, and citizenship.

A personal loan happens to be multi-purpose loan without end-usage restrictions, and as such can be used for varied financial purposes and needs. However, in terms of security, a personal loan by nature an unsecured loan does not require any collateral or security of any kind.

Here's a list essential documents for a personal loan. For a complete list with details, click here.

  • Proof of Identity
  • Proof of Residence
  • Proof of Ownership of Residence
  • Proof of Business Existence
  • Proof of Office Address
  • Proof of Ownership of Office
  • Proof of Income
  • Proof of Job Continuity
  • Proof of Investment
  • Photographs
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Balance Taransfer & Topup

Frequently Asked Questions

A personal loan balance transfer features benefits such as
  • Lower Rate of Interest
  • Longer Repayment Tenure
  • Additional Features
  • Top-up Loan Facility
  • Better Services
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