A personal loan is a short to medium term unsecured loan that helps an individual to meet his urgent financial needs. In order to avail of a personal loan, you don’t have to pledge any collateral or security unlike a home loan or a car loan.

Loan Eligibility

Salaried:-

Age:-21 – 60 years

Minimum Income:- Rs. 15,000 (per month)

Credit Score:- Above 750

Employment stability:- Total experience- Minimum 2 years.Minimum experience in the current organization- 1 year.

Self-Employed:-

Age:-21 – 68 years

Minimum Income:- Rs. 5 lakh (gross annual)

Credit Score:- Above 750

Employment stability:- Total experience- Minimum 2 years in the current business.

Documents Required 

Salaried:-

• Proof of identity (a copy of Passport/Voter ID Card/Driving License/Aadhaar).
• Proof of residence (a copy of Passport/ Voter ID Card/ Driving License/ Aadhaar/Leave and License Agreement/ Utility Bill of not more than 3 months).
• A copy of the latest salary slip/current dated salary certificate with the latest Form 16.
• Bank statement of the previous 3 months.
• 2 passport size photographs.

Self-Employed:-

• Proof of identity (a copy of Passport/Voter ID Card/Driving License/Aadhaar).
• Proof of residence (a copy of Passport/ Voter ID Card/ Driving License/ Aadhaar/Leave and License Agreement/ Utility Bill of not more than 3 months).
• Proof of income (audited financials for the last 2 years).
• Proof of office address.
• Proof of office ownership.
• Proof of continuity of business.
• Latest 6 months bank statement.
• Two passport size photographs.

Business loans are majorly availed for purposes like business expansion, purchase of machinery or plant, investment in infrastructure, hiring staff, maintain inventory, etc. Further, we have discussed all the relevant aspects of business loans for in-depth understanding.

Types in Business Loans

Loans for Self-employed Entrepreneurs:-
This is the most popular category among all as the loans for self-employed entrepreneurs are taken in large numbers. The loan amount can range anywhere between Rs. 50,000 is the minimum and can reach up to 10 crores. The interest rate offered depends on the financial history of the applicant and is decided by the lenders as per their discretion.

MUDRA Loan:-
Micro Units Development and Refinance Agency (MUDRA) loan is funding provided by most of the leading banks to Micro, Small and Medium Enterprises (MSMEs) nationwide. Under the MUDRA scheme, loans of minimum Rs. 50,000 and a maximum of Rs. 10 lakh is provided to start an enterprise or an SME unit. Through the Mudra Loan Yojana, the Government wants to ensure that proper funding is provided to first-time entrepreneurs or existing business owners.

Overdraft Loan:-
An overdraft means overdrawing money from ones’ current/savings account. In simpler words, an account holder takes out more money that has been deposited in the account. An agreed rate of interest will be charged if the overdrawn amount is within the limits of a preceding agreement.

Pradhan Mantri Mudra Yojana (PMMY):-
PMMY is a scheme launched by the Government of India to offer funds up to Rs. 10 lakh to non-farm small/micro enterprises and non-corporate companies. Mudra loan scheme is divided into three categories named Shishu, Kishore & Tarun wherein these loans are offered by Private Sector Banks, Public Sector Banks, Regional Rural Banks (RRBs), etc.

Term Loan:-
Currently, many types of term loans are available, such as short-term loans, long-term loans, and other intermediate loans. An entrepreneur can avail of these loans according to his/her requirements and economical position. Mainly the loan tenure for a short term loan is 12 months and for the long-term loan, it goes up to 10-15 years.

Working Capital Loan:-
Working Capital Loans are used to overcome the day-to-day financial requirements of enterprises. The daily expenditure of enterprises includes paying-off salaries, buying raw materials, paying rent, undertaking training, etc.

Loan Eligibility

Salaried:-

Age:-21 – 60 years

Minimum Income:- Rs. 15,000 (per month)

Credit Score:- Above 750

Employment stability:- Total experience- Minimum 2 years.Minimum experience in the current organization- 1 year.

Self-Employed:-

Age:-21 – 68 years

Minimum Income:- Rs. 5 lakh (gross annual)

Credit Score:- Above 750

Employment stability:- Total experience- Minimum 2 years in the current business.

Documents Required 

Salaried:-

• Proof of identity (a copy of Passport/Voter ID Card/Driving License/Aadhaar).
• Proof of residence (a copy of Passport/ Voter ID Card/ Driving License/ Aadhaar/Leave and License Agreement/ Utility Bill of not more than 3 months).
• A copy of the latest salary slip/current dated salary certificate with the latest Form 16.
• Bank statement of the previous 3 months.
• 2 passport size photographs.

Self-Employed:-

• Proof of identity (a copy of Passport/Voter ID Card/Driving License/Aadhaar).
• Proof of residence (a copy of Passport/ Voter ID Card/ Driving License/ Aadhaar/Leave and License Agreement/ Utility Bill of not more than 3 months).
• Proof of income (audited financials for the last 2 years).
• Proof of office address.
• Proof of office ownership.
• Proof of continuity of business.
• Latest 6 months bank statement.
• Two passport size photographs.

A home loan is an amount of money that an individual borrows from a bank or money lending company at a certain rate of interest to be paid with the EMI every month. The property is taken as a security by the money lending company for the Home Loan.

 Documents Required

Loan Eligibility

These loans are a better option as compared to a personal loan due to the comparatively lower rate of interest charged by the lender. Additionally, unlike gold loans, where the gold ornaments are deposited with the bank and you do not get them back till the loan is paid in full, you can continue using the property used as collateral while you are repaying the loan.

Types in Loans Against Property

• LAP (Term Loan)
• Dropline Overdraft (DOD)
• Loan against Rent Receivables (LARR)
• Loan for Purchase of Commercial Property (LCP)

Loan Eligibility

Salaried:-

Age:-21 – 60 years

Minimum Income:- Rs. 15,000 (per month)

Credit Score:- Above 750

Employment stability:- Total experience- Minimum 2 years.Minimum experience in the current organization- 1 year.

Self-Employed:-

Age:-21 – 68 years

Minimum Income:- Rs. 5 lakh (gross annual)

Credit Score:- Above 750

Employment stability:- Total experience- Minimum 2 years in the current business.

Documents Required 

Salaried:-

• Proof of identity (a copy of Passport/Voter ID Card/Driving License/Aadhaar).
• Proof of residence (a copy of Passport/ Voter ID Card/ Driving License/ Aadhaar/Leave and License Agreement/ Utility Bill of not more than 3 months).
• A copy of the latest salary slip/current dated salary certificate with the latest Form 16.
• Bank statement of the previous 3 months.
• 2 passport size photographs.

Self-Employed:-

• Proof of identity (a copy of Passport/Voter ID Card/Driving License/Aadhaar).
• Proof of residence (a copy of Passport/ Voter ID Card/ Driving License/ Aadhaar/Leave and License Agreement/ Utility Bill of not more than 3 months).
• Proof of income (audited financials for the last 2 years).
• Proof of office address.
• Proof of office ownership.
• Proof of continuity of business.
• Latest 6 months bank statement.
• Two passport size photographs.