Loans In India


One of the reasons for boom in Indian economy is that now a days loans are easily available and the rate of interests at which they are available are very reasonable. Banks are giving loan for and loan against any and every thing. Government too is encouraging people to take loans for certain purposes. For example, government is encouraging people to take housing loans by giving tax concessions.

In view of the deluge of loans that are available in the market today, we have come up with useful information about variety of loans that are available in India. These include:

Home Loans India

To have one's own home is the dream of every person. Now that getting a home loan is so easy it seems everyone can fulfill his / her long cherished dream.

Auto Loans India


With a plethora of auto loans opportunities available these days, it is now possible for you to buy your dream car.

Business Loans India


Several banks give loans to cater to business requirements. Banks have laid out a number of products specifically catering to SSI (small-scale industries) and Small Business Borrowers.

Education Loans India


Education is the essence of life. To ensure that no deserving student is denied education for want of funds government is promoting education loans in a big way.

Marriage Loans India


Marriage is one of the most important events in a person's life. You want to make sure that all the arrangements are perfect and match the occasion.

Personal Loans India


Personal loan is an unsecured loan that does not require any security for borrowing money. Personal loans help you to take care of your immediate requirements without much of a hassle.

Loans against home


Loan against home connotes a loan that is given or disbursed against the mortgage of home. The loan against property is given as a certain percentage of market value of the property.

Loans against auto


Loan against auto is available in the form of overdraft against car. The rate of interest is lower than interest in case of personal loan.

Loans against shares


It is advisable to take loan against equity (shares & debentures) only when you are expecting a certain sum of money a few months down the line and you need some funds in the interim.

Auto Loans :


With a plethora of auto loan opportunities available in India these days, it is now possible for you to buy your dream car within a matter of days. No need to save up money for making complete down payment at the time of buying. Just gather enough amount for the initial payment and pay the rest in easy installments, by taking up a loan. The best part about auto financing is that, apart from the new cars, loans are available for old cars as well.

After you have decided to take an auto loan, check out the various finance schemes available in the market. After undertaking a thorough research of each and every scheme, you will need to pick the one that suits you the most, in terms of interest rate, monthly installments, duration, and so on. The size of the loan will depend upon the cost of the vehicle and its type (standard or premium), along with the percentage financing you want or are being offered.

In case of a new car, up to 90% of cost of the car is finance, while the percentage gets reduced to 80% in case of old car. However, the financiers might have different terms for different models. For example, Maruti 800 has a high resale value. In case the buyer defaults and the finance company has to sell the car, to get back their loan amount, it would be able to get a higher value. Therefore, the finance company may give higher percentage of finance in such a case.

There is no necessity for any collateral to get a car loan. Usually, the bank or finance company hypothecates the car in its name. The endorsement for hypothecation is made in the Registration Certificate (RC) book of the vehicle, which gets cancelled after the loan is repaid. Usually the tenure of auto loan varies from 1 to 5 years. However, there are some banks with schemes that offer loans for 7 years as well.

General Features


In case of a new car, loan amount is up to 90% of cost of the car.
In case of used car, loan amount is up to 80% of the car.
The maximum loan amount is up to 3 times the annual salary (for salaried professionals) or 6 times the annual income (for self employed professionals).
Banks generally offer a preferential treatment to their existing customers. If you have savings or current account with a bank, it is easier to get the loan and you might also get preference in terms of rate of interest.
Loan is given for a period of 1 to 5 years.
If you want to go for an early settlement of the loan amount, certain charges are taken as a penalty.
For the purpose of auto loan, the interest is calculated on compound basis.
There is also a minimum amount of auto loan that you have to take from finance money.
In case you have been declared bankrupt, applied for bankruptcy, defaulted in some loan in the past or a court case pending against you, it will be very difficult for you to get an auto loan.
The rate of interest for an auto loan differs from one bank to the other, while the minimum is somewhere around 10-11 percent.
Eligibility Criteria
Minimum Age of Applicant While Applying For Loan: 21 years
Maximum Age of Applicant at Loan Maturity: 58 years
Minimum Employment: 1 year in current employment and minimum 2 years of employment in general
Minimum Annual Income: Rs 100,000 (net)
Telephone: Must at Residence
Documents Required
Proof of Identity (Copy of Passport, PAN Card, Voters ID Card or Driving License)
Income Proof (Latest salary slip with form 16 - for salaried individuals or IT returns for the last two financial years - for self employed individuals and professionals)
Address Proof (Copy of Ration Card/Driving License/Voters Card/Passport /Telephone Bill/ Electricity Bill/Life Insurance Policy/ Pan Card)
Bank Statement (For the last 6 months)
Two passport size photographs

Bussiness Loan :


Business loans are available to self employed professionals, firms and corporations, to meet their operating expenses, finance capital expenditure (or acquisition of fixed assets) towards starting or expanding a business. Even industrial units are given business loans, to swap existing high-cost debt from other bank / financial institution. Apart from providing funding, bank can also issue letters of credit or give a guarantee, on behalf of the customer, to the suppliers and even government departments, for the procurement of goods and services on credit.

The maximum amount of business loan that can be sanctioned varies from bank to bank. However, the minimum loan amount is Rs. 25000 and maximum loan tenure is 5 years. Generally, no security is required for business credit up to a certain limit. For business loans above the limit, banks usually require a collateral security or a percentage of business loans as margin, in the form of fixed deposit with the bank. Business loans are similar to an overdraft and are available like a limit on current account. In this case, the interest is charged only on the actual amount utilized, rather the entire amount of loan.

Types of Business Loans


Professional Loans


Professional loans, as their very name suggests, are provided to self employed professionals like Doctor, Chartered Accountant, Interior Decorator, Architect, Company Secretary, etc. Unsecured in nature, this type of loan is not given to manufacturing, trading or processing units. The amount of loan varies between Rs. 25000 to Rs. 25 lakh, considering the age of the applicant, his financial standing, his repayment capacity, tenure of the loan (maximum 5 years), etc.

In case of professional loans, the rate of interest depends upon the prime lending rate, is calculated on diminishing balance and can be on the fixed as well as fluctuating basis. In many cases, it depends upon the customer's profile and his financial capacity. The payment is made through EMIs and in only a few cases, tangible collateral security is required. Most of the finance companies also charge a process fee, usually 1% of the loan amount.

Documents Required


Proof of Identity (Passport Copy/ Voters ID Card/ Driving License)
Address Proof (Ration Card/ Telephone Bill/ /Electricity Bill/ Passport)
Bank Statements (latest 6 months bank statement /passbook)
Latest ITR, along with computation of income
Balance Sheet & P&L Account for the last 2 yrs, certified by a CA
Qualification Proof of the Highest Professional Degree
Proof of Continuation (Trade license /Establishment /Sales Tax Certificate)
Other Mandatory Documents (Sole Proprietorship - Declaration, Partnership - Copy of Partnership Deed, Apart from Copy of MOA, AOA & Board Resolution)
Two passport size photographs

Trade Loans

Trade loans are provided to traders/ businessmen, so as to help them either open a new business or operate/expand an existing one. The amount of loan varies between Rs. 25000 to Rs. 100 lakh, considering the age of the customer, his financial standing, his repayment capacity, tenure of the loan, etc. The maximum duration for which the loan is given is 5 years and it has to be repaid through Equated Monthly Installments or EMI.

The rate of interest depends upon the prime lending rate and can be offered on the fixed as well as fluctuating basis. There are many banks that require customers to furnish collateral security for the loan, in the form of mortgage of land (not agricultural land) and building. Apart from that, National Savings Certificates, Government Bonds, Bank's Term Deposits, Assignment of Life Insurance Policies, Approved Shares & Bonds (in the name of borrower/proprietor/partner/director) are also acceptable.

Type of Concerns Given Business Loan
Sole Proprietorships
Partnerships
Private Limited Companies
Documents Required

Sole Proprietorship / Partnership Firm
Proof of Identity (Copy of Sales Tax / VAT /Service Tax / Excise Registration Receipt OR Registration under Shops and Establishment Act OR PAN ID / IT Return of the Concern OR Water / Electricity / Municipal Tax Bill in the Name of the Concern OR MAPIN Card in the Name of the Concern)
Proof of Individual Identity (Copy of Passport/Voter's Identity Card/Photo PAN Card/Driving License/MAPIN Card)
Proof of Residence Address (Copy of Passport/Voter's Identity Card/Driving License/Ration Card/Life Insurance Policy/Electricity Bill/Telephone Bill)
PAN Number/Form 60 of the Concern
Financial Documents (Copy of P & L Account and Balance Sheet for last two years, audited by a CA and Copies of IT returns for the last two years)
Bank Statements for last 6 months
Partnership Deed (Required only in case of Partnership Firm)
Proof of Place of Business
Two passport size photographs
Private Limited Company
Proof of Identity (Copy of Sales Tax / VAT /Service Tax / Excise Registration OR Registration under Shops and Establishment Act OR PAN ID / IT Return of the Concern OR Water / Electricity / Municipal Tax Bill in the Name of the Concern OR MAPIN Card in the Name of the Concern)
Memorandum and Articles of Association (Copy of Certificate of Incorporation)
Board Resolution (Copy of Annual Return establishing the shareholding pattern)
Proof of Individual Identity for the authorized signatories and 2 directors, including the managing director (Copy of Passport/Voter's Identity Card/Photo PAN Card/Driving License/MAPIN Card)
List of Directors
Copy of Form 32 filed with ROC
PAN Card / Form 60 of the Concern
Financial Documents (Copy of P & L and Balance Sheet for last two years, audited by a CA, and Copies of IT returns for the last two years)
Bank Statements for last 6 months
Proof of Place of Business
Two passport size photographs
More Information

Short-term Loans


Used for short-term working capital requirements and paid within 1 year.

Intermediate Loans


Used for new business, to build inventory, buy equipment or increase working capital, and paid between 1 and 3 years.

Long-term Loans


Used for well established business, to increase fixed assets, for related business acquisitions or expansion, and paid between 3 and 5 years. At times, used for start-up business, to purchase land or buildings, fund construction efforts or finance long-term working capital.

Note
Two types of charges might be levied in case of business loan - processing fee and Pre-payment fee. Processing fee is payable at the time of processing of loan application. Pre-payment fee is payable in case you decide to pre-close your loan account, by paying the entire/part of the loan before it is due.

Education Loan :


Education is the essence of life. To ensure that no deserving student is denied education for want of funds, the government is promoting education loans in a big way. The basic aim or idea behind education loan is to bring education within the reach of students and help them improve their prospects in life. Any student who has secured admission in an institute of repute, whose degree/diploma is recognized by University/Institute affiliated to any Central/State Statutory Body or recognized by AICTE (All India Council of Technical Education) and other institutes of repute, is eligible for educational loan.

Education loans cover cost of the school/college fee, hostel expenses, and cost of books and stationery. Apart from this, any other expense required to complete the course can also be considered. The maximum amount of education loan is up to Rs. 7.50 lakh in case of studies in India and Rs 15 lakhs for studying abroad. The sum of money offered is against a third-party guarantee. The third-party guarantee can come from an uncle, neighbor or friend standing guarantee for the full amount of the loan.

On an average, an education loan has to be repaid over a period of 5 to 7 years, with the provision of a grace period of one year after completion of studies. The loan money has to be repaid within 84 months in equated monthly installments (EMIs), commencing 12 months after course completion or 6 months after getting the job, whichever is earlier. In case of overseas study loan of 7 lakhs or above, the sum of money is usually given against fixed deposits, NSC certificates and property worth the loan amount.

General Information


The exact rate of interest for education loan differs from one bank to the other. However, it usually varies from 10 to 15 percent.
Apart from the fee of the course, a list of other expenses is also covered by education loans. However, the list depends upon the bank from which you are taking the loan.
Education loan can be offered at fixed as well as floating interest rate. The interest is usually charged on a daily or monthly reducing balance.
Generally, nationalized banks have been seen to offer variable interest rates, while private and foreign banks charged fixed interest rates on education loans.
While applying for education loan, you will have to pay a percentage of the loan amount, as processing fee.
In most of the cases, the entire fee for a course is not financed by the bank. A certain proportion, called margin, has to be paid by the applicant. The margin requirements on education loans are not very rigid, with the average being 5 percent for studying in India and 15 per cent for abroad.
Eligibility Criteria
The applicant should be an Indian national.
He/she must have secured admission to professional/technical courses, through entrance test/selection process
He/she should be around 16-26 years of age or any other range specified by the bank.
He/she should not be a minor.
He/she should have a good academic track record.
He/she should have parents or guardians with stable source of income.
He/she should have secured admission to a recognized university in India or abroad.
Documents Required
Mark sheet of last qualifying examination for school and graduate studies in India
Proof of admission to the course
Schedule of expenses for the course
Copies of letter confirming scholarship, if any
Copies of foreign exchange permit, if applicable
2 passport size photographs
Statement of Bank account for the last six months of borrower/parents
Income tax assessment order, not more than 2 years old
Brief statement of assets and liabilities of borrower/parents
If not an existing bank customer, Proof of Identity and Residence
Two passport size photographs

Home Loan :

Real estate is currently one of the fastest growing sectors in India. Banking sector is also registering profitable business since the last few decades, with the growth of real estate. Majority of the banks are also offering easy home loans at attractive rates to their customers. Now that getting a home loan is so easy, it seems everyone can fulfill his / her long cherished dreams of purchasing lands, building their houses and expanding their homes. Different types of home loans are tailored to suit the heterogeneous requirements of the customers. The description of some of the most common types of home loans is given below.

Types Of Home Loans


Home Purchase Loans: This is the basic home loan for the purchase of a new home.
Home Improvement Loans: These loans are given for implementing repair works and renovations in a home that has already been purchased by you.
Home Construction Loan: This loan is available for the construction of a new home.
Home Extension Loan: This is given for expanding or extending an existing home. For instance, you may apply for a loan for the addition of an extra room in your home and for similar cases.
Home Conversion Loan: This is available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need of pre-payment of the previous loan.
Land Purchase Loans: This loan is available for purchase of land for both construction and investment purposes.
Bridge Loans: Bridge loans are designed for people who wish to sell the existing home and purchase another one. The bridge loans help finance the new home.
Balance Transfer Loans: Balance transfer loans help to pay off an existing home loan and avail the option of a loan with a lower rate of interest.
Refinance Loans: This loan helps you pay off the debt you have incurred from private sources such as relatives and friends, for the purchase of your present home.
Stamp Duty Loans: This loan is sanctioned to pay the stamp duty amount that needs to be paid on the purchase of property.
Features of Home Loan
Home loans are available on fixed rate of interest as well as floating rate of interest. In fixed rate loans, the interest rate remains fixed over the life of the loan, irrespective of the interest rates in the open market. The plus point of fixed rate loans is that they remain steady over the years, making at least one aspect of your monthly cash flow predictable. However, the flip side is that the lenders charge a higher rate of interest for fixed-rate loans because if interest rates shoot up, they lose the opportunity to make more money on the funds they are lending.

In floating rate loans, the rate of interest changes according to a set formula as interest rates fluctuate in the open market. The plus point is that lenders charge a lower rate for such loans because you are taking on some of the interest-rate risk. The downside is that interest rates may rise anytime and you can end up paying more than fixed rate loans. The type of interest you opt for will entirely depend on your personal preferences.

General Information


The loan amount is based on the repayment capacity of the customer. However, it cannot be more than 85% of the cost of the property (including the cost of the land).
The minimum term of home loan is 5 years, while the maximum duration for the loan is 20 years, subject to the retirement age of the applicant.
Home Loans can be applied either individually or jointly, with spouse, children (son or daughter) and even earning parents (father or mother), but if staying with the applicant and having regular income.
Home loan eligibility can be enhanced by repaying the outstanding loans, clubbing the income, increasing the home loan tenure and opting for a step-up loan.
The amount of loan sanctioned varies from bank to bank. Generally, the maximum loan amount granted for the applicant would be 80% to 85% of the cost of the home.
The eligibility for the applicant depends upon his/her capacity of repayment. It stiffens with the increase in home loan rates.
Processing charge, pre-payment penalties, commitment fees and miscellaneous costs accompany a home loan, in many of the cases.
Providing additional security, like bonds, fixed deposits and LIC policies, or having a guarantor can enhance your eligibility for a home loan.
Eligibility Criteria
The minimum age limit for the person applying for loan is 21 years.
For Government employees and those working at public limited companies, the maximum age limit for applying for home loan is 60 years, while for salaried individuals, it is 58 years.. For self employed people, the maximum age limit is 65 years.
The applicant should be graduate.
The applicant should have a stable source of income, at the time of availing the loan and should have a saving history as well.
Documents Required

Salaried Individuals
Salary slip/Form 16 A
A photocopy of the first and last pages of Ration card or copy of PAN/Telephone/Electricity bills
A photocopy of Investments (FD Certificates, Shares, any fixed asset etc. or any other documents supporting the financial background of the borrower
A photocopy of LIC policies with the latest premium payment receipts (if any).
Two passport size photographs
A photocopy of bank statement for the last six months
Self-Employed/Businessmen
A brief introduction of Business/Profession
Balance Sheet, Profit and Loss account and statement of income with Income Tax returns for the last 3 years, certified by a CA
A photocopy of Advance Tax payments (if applicable)
A photocopy of Registration Certificate of establishment under shops and Establishments Act/Factories Act
A photocopy of Registration Certificate for deduction of Profession Tax (if applicable)
Bank statements of Current and Saving accounts for the last 6 months
A photocopy of Certificate of Practice(if applicable)
A photocopy of any bank loan (if applicable)
A photocopy of the first and last pages of the Ration card or a copy of PAN/Telephone/Electricity Bills
A photocopy of LIC policy (if applicable)
A photocopy of investments (FD Certificates, Shares, any other fixed asset
Two passport size photograph

Loan Against Automobile :


Loan against auto is available in the form of overdraft against car. The rate of interest is lower than interest in case of personal loan. The money can be utilized for personal as well as business needs. The overdraft amount that can be sanctioned is up to 80% of the value of the car. All vehicles are valued by Bank empanelled valuers. To receive the overdraft amount, a Current Account with an overdraft limit is created in borrower's name. The interest is charged only on the amount withdrawn. Most of the banks give overdraft facility even if the car is hypothecated in another financier's name. Usually, the overdraft facility is not given if the car is more than 9 years old.

Documents Required
Proof of Residence (Copy of Photo Ration Card with DOB / Photo Driving License with DOB / Passport Copy / Electricity Bill / Telephone Bill / Credit Card Statement / Employer Certificate or ID / Lease Agreement)
Proof of Identity (Copy of Passport / Photo Driving License with DOB / Voters ID Card / PAN Card / Photo Ration Card with DOB)
Proof of Income: Latest Salary Slip and latest form 16 or latest ITR
Proof of Signature (Copy of Passport copy / Photo Driving License with DOB / PAN Card / Credit Card Statement / Banker's Verification / Copy of IP paid to Bank and cleared)
Two passport size photographs

Loan Against Home :


Loan against home connotes a loan that is given or disbursed against the mortgage of home, as a certain percentage of market value of the property. Generally, the loan amount that is sanctioned ranges from 40% to 70% of the market value, with a minimum threshold limit of Rs 2 lakh. A loan against home works out to be much cheaper than personal loan. The rate is lower because the lending entity has a security in the form of the housing mortgage vis-à-vis a personal loan that is given without any security.

The tenure for repaying loan against home has an upper limit of 10 years. The loan can be taken for any purpose and the customer is not required to disclose the motive behind the loan, to the lending authority. The criteria for loan against home are same as that of a home loan. Part prepayment as well as full prepayment of the loan is generally allowed by most lending institutions, though with a charge. Loan against property is available in case of both residential and commercial property. Many housing finance companies allow individuals to take loan against home even if they have taken a housing loan from them.

Amount Of Loan Depends Upon
Your income, savings, debt obligations
Cost/value of the property mortgaged
Your repayment track record for other loans, credit cards, etc
Number of years in service/ business
Eligibility Criteria

Salaried Individuals
Minimum Age of Applicant: 21 years
Maximum Age of Applicant at the Time of Loan Maturity: 60 years
Minimum Net Monthly Income: Rs 12,000 per month
Self-employed Individuals
Minimum Age of Applicant: 21 years
Maximum Age of applicant at the Time of Loan Maturity: 65 years
Minimum Annual Income: Rs 1,50,000 per year
Documents Required
Proof of Residence (Copy of Ration Card/ Telephone Bill/ Electricity Bill/ Voters Card)
Proof of Identity - (Copy of Voters Card/ Drivers License/ Employers Card)
Bank Statement / Passbook, for past 6 months (where salary/ income is credited)
Salary Slip for last 3 months, with all deductions
Form 16 for the last 2 years
Copy of all Property Documents
In case of self employed professionals, apart from the above documents, certified financial statement for last 2 years is required
Two passport size photographs
Other Details
Generally, loan processing charge of 2% is levied.
Pre-payment is allowed after 6 months. Generally, prepayment charge equivalent to 4% of the outstanding principal is levied.
In most of the cases, the minimum amount of loan against property is Rs 25,000 and the maximum amount is Rs 1.5 crore (Rs 15 million).
The charges that might apply in case of loan against property are processing fee, pre-payment fee, charges for changing from fixed to floating rate of interest and charges for changing from floating to fixed rate of interest.

Loan Against Shares :


The main purpose of taking loans against shares is to preserve investment, apart from taking care of personal needs. People also resort to such a loan to meet their contingencies and get liquidity without actually selling the shares. It is advisable to take loan against equity (shares & debentures) only when you are expecting a certain sum of money a few months down the line and you need some funds in the interim. If you are reinvesting the loan amount, ensure that the benefits you derive are more than the cost you have to incur (which includes interest and processing fee). Carefully consider the risk involved in such a move.

Loan against shares is available in the form of an overdraft facility against the pledge of financial securities like shares/units/bonds. After you submit the loan application with all the share certificates and other relevant documents, a current account is opened in your name. You can then withdraw up to the amount sanctioned and interest will be charged only for the number of days you use the amount. The loan amount that can be sanctioned depends on two factors: the extent of funding on a particular stock and the price (called the base price) considered by the lender for calculating the value of the shares.

The Reserve Bank of India (RBI) allows banks to lend up to 75 per cent of the value of demat shares and 50 per cent of the value of physical shares. However, banks can, and do, fix their own limits with respect to the extent of funding within that range. Generally, demat shares get you a larger loan amount, in a much faster time, at lesser rate of interest and at smaller processing fee, than those in physical form. Every lender has an approved list of securities that he lends against and this list varies from one lender to the other. There are other conditions that lenders apply on equity loans.
The loan is extended against shares of eligible companies and, in a few cases, units of reputed open-ended mutual funds.
Generally, a maximum of 20 shares can be pledged, at a time.
Only fully paid-up shares, in the lender’s approved list of securities, are accepted.
Shares held in the name of minors, HUFs, NRIs and companies are generally not accepted.
Loans against mutual fund units are based on their NAV value
Necessary Conditions
The shares should be on the approved list of the bank, which would be revised from time to time.
The shares should be fully paid up
Scrips in the name of corporate, minors, Firms, HUF, and NRIs are not eligible for finance under this scheme.
The directors or promoters of companies cannot pledge scrips of the same company.
All shares should be strictly in their marketable lots.
Documents Required

Shares in Demat Form
Request form for transaction.
Photocopy of dividend warrants of shares and units to be pledged.
Covering letter from the company received by the shareholder at the time of transfer.
Shares in Physical Form
Share certificates
Signed and valid transfer deeds (not more than a month old)
Photocopies of dividend warrants of shares and units to be pledged
Allotment letter for rights or bonus shares from the company, or broker contract note specifying share certificate and distinctive numbers.
Covering letter from the company received by the shareholder at the time of transfer.
General Information
The amount of loan that can be availed under "Loans against Shares" depends on the form of shares - physical or demat. A minimum amount of Rs. 100,000 has to be taken under the scheme. As for the maximum amount, it is up to Rs. 10,00,000 for physical shares and up to Rs 20,00,000 for Demat shares.
The rate of interest that is charged on loan against shares usually ranges between 15% and 18.5%. An extra interest of 2% p.a. might also be charged on the amount by which your outstanding amount exceeds the limit and for the period it is in excess.
Apart from your own shares, you can also pledge the shares of your spouse, children (above 18 years of age), parents, brother(s)/sister(s), in laws, grandparents and grandchildren (above 18 years of age)
The amount of loan that you will get depends on the valuation of the security, applicable margin, your ability to service and repay the loan and other conditions, as applicable from time to time and from bank to bank.
The charges that are levied in case of loan against shares include processing fees (usually 1-1.5% of the loan amount) and, at times, documentation charges (varies from bank to bank).
In case of demat shares; around 65% of the amount of scrips pledged is available as overdraft. The percentage drops down to 50% if the shares are in physical form.

Marriage Loans :

Marriage is one of the most important events in a person's life. You want to make sure that all the arrangements are perfect and match the occasion. Marriage loans ensure that money is not a hindrance in marriage preparations. Several Indian banks offer loans for marriage. The loan is available for meeting the expenses of marriage of your own self as well as that of your daughter, son dependent sister and dependent brother.

The marriage loan amount that can be sanctioned varies from bank to bank and from customer to customer, depending on a number of factors, such as, security/collateral offered by the customer, repayment capacity of the borrower, age of the borrower. Generally, it is twice the net annual income of the applicant. There is no fixed interest rate for marriage loans in India. It is mostly based on the current market rate, at the time of taking the loan.

For the loan to be disbursed, the bride and the groom should not be less than 18 years and 21 years of age respectively. Anyone can apply for the loan. He/she has to fill a form at bank outlet. The bank charges processing fees, at the time of submission of the form, which varies from one bank to the other. The repayment of the loan can be done either through monthly/quarterly/half yearly installments or under Equated Monthly Installments (EMI) scheme.

Eligibility for Marriage Loan
Though the eligibility criteria vary from bank to bank, following major conditions should be fulfilled:
Minimum Age for loan: 21 years (groom)/ 18 years (bride)
Maximum Age of Applicant at the Time of Loan Maturity: 60 years
Net Annual Income: Rs. 1,44,000 pa
Years in Current Job / Profession: 1 year
Years in Current Residence: 1 year
Documents Required

Salaried Individuals
Proof of Identity (Passport Copy/ Voters ID card/ Driving License).
Address Proof (Ration card Tel/elect. Bill/ / Passport copy)
Bank Statement/ Passbook, for last 6 months
Latest salary slip or current dated salary certificate, with latest Form 16
Two passport size photographs
Self Employed Professionals & Businessmen
Proof of Identity (Passport Copy/ Voters ID card/ Driving License).
Address Proof (Ration card Tel/electricity Bill/ Passport )
Bank Statement/ Passbook, for last 6 months
ITR for the last 2 yrs, along with along with computation of income, Balance Sheet & P&L Account (certified by a CA)
Qualification Proof of the Highest Professional Degree
Proof of Continuation (Trade License /Establishment /Sales Tax Certificate)
Other Mandatory Documents (Sole Proprietorship. Declaration. Or Certificate. Copy of Partnership Deed, Cert. Copy of MOA, AOA & Board resolution.)
Two passport size photographs
Other Information
Loan processing charges are generally levied, equivalent to 2% to 3% of the loan amount.
Prepayment of the loan is possible after 180 days of availing the loan. In this case, certain charges are levied, as per the bank's norms.
The maximum limit of marriage loan is Rs. 2 to 3 lakh, varying from one bank to the other.

Personal Loan :


Personal loan is a lump sum amount that you take either from a bank or building society or another lender. Such loans help you to take care of your immediate requirements without much of a hassle. In fact, personal loan is one of the quickest ways of borrowing money. Also, no questions regarding the end use of the loan are asked. You can use the loan amount for any purpose such as home renovation, marriage expenses, medical expenses, holidays, consumer durables, higher education etc. While applying for the loan, the lender usually conducts a credit worthiness check, before giving the loan. Personal loans are repayable in equal monthly installments (EMIs) and the loan tenure varies from 1 to 5 years.

The maximum amount of personal loan for which you are eligible depends upon your take-home salary. The exact loan amount depends on your eligibility and takes into account many other things as well, like your credit rating, job security, residential location and the ability to repay the loan amount in time. You can also apply jointly with a co-applicant, say your spouse for personal loan. This allows you to increase your loan eligibility, as the income of your spouse is also added to your income, for the purpose of calculating the total loan amount. The loan range in case of personal loan is Rs. 50,000 to Rs. 20, 00,000.

As personal loans are given without any security and involve a high risk, the interest charged is usually more as compared to other loans, usually varying from 12 to 24%. Apart from this, interest processing fee is also charged from the borrowers. Processing fee is payable at the time of processing of loan application. A pre-payment fee is payable in case you decide to pre-close your loan account. Both processing fee and pre-payment fee are in the range of 2-3%. You can get the benefits of preferred interest rates, priority processing and simpler documentation, if you are an existing customer with the bank. Generally, personal loans are sanctioned within 72 hours.

Types of Personal Loans
A secured loan is one in which you need to attach a guarantee against the sum of money borrowed. This can either be in the form of your property or any fixed/movable asset. Upon default, there is a risk of the asset being taken over by the bank and sold off.
An unsecured loan is one in which no security needs to given for the money borrowed. However, in this case, the lender would be charging a higher rate of interest, taking into account the high risk involved in lending the sum. In case the recipient fails to repay the loan, the lender can seek legal help to make up for the loss incurred.
Eligibility Criteria for Personal Loans

Salaried Individuals
Minimum Age of the Applicant - 21 years
Maximum Age of Applicant at Loan Maturity - 58 years
Minimum Employment Period - 2 years in total and 1 year at present organization
Minimum Income - Rs. 8000 per month
Self Employed Professionals & Businessman
Minimum Age of the Applicant - 25 years
Maximum age of Applicant at Loan Maturity - 65 years
Minimum Business Period - Minimum 3 years in current business and 5 years total experience
Minimum Annual Income - Rs.60,000
Documents Required for Personal Loan
Bank Statement for last three months (where salary/income is credited)
Salary Slips for last three months (if salaried) or ITR for the last two years (if self employed)
Proof of Continuity in Current Job - Form 16 / Company Appointment Letter (if salaried)
Proof of Identity (Copy Of Passport / Driving License / Voters ID / PAN Card / Photo Credit Card / Employee ID Card)
Proof of Residence (Copy Of Ration Card / Utility Bill / LIC Policy Receipt)
Proof of Qualification Highest Degree (for Professionals / Govt employees)
For Professionals - proof of qualification, say degree, registration with professional council, etc.
Two passport size photographs