India’s biggest tax reform Goods and Services Tax (GST) is in effect from July 1 2017. The implementation of bill has affected the price of all most all goods and services consumed. The bill is applicable on the banking services as well. The banking services that were charged at 15% will now be charged at the rate of 18% per cent. Due to which people are assuming that the loan interest rate have increased. But this is not true.
The interest rate on loan remain the same. Yes, the loans have been affected by the GST Bill but their is a minute hike in processing fee which is a one time payment. Also, the service taxes that are paid along the processing fee have increased by 3% and now will be 18%. Other things related to the loan remain same.
Though bit costlier than before but the fact is that the we can’t avoid taking loan when we are in need of it. The requirement of funds is to be fulfilled. One credit facility that can be used in all times is personal loan. It is a loan product where the funds disbursed can be used for any purpose. There is no predetermined usage of the money disbursed under the loan. Since it is an unsecured loan, less paperwork is required. The loan is quickly disbursed. This loan can be availed in times of urgency as the sum is shortly disbursed. If people think that post GST, availing PL will be costlier then again it is wrong.
Personal loan interest rate are same as before. And there is not much change in charges to be paid. Only there is the shift of 15% service tax to 18% GST slab. This is a one time expense that the applicant has to pay along with the processing fee and also when he/she prepays the loan. Otherwise, your EMI will be as before. You need not pay extra penny towards the settlement of loan. The interest charged on the principal amount will charged at the rate prevailing. So your monthly payment towards the repayment will be same and no pressure will be built on you.
If still you are not clear then you can calculate the interest payable on your loan using the EMI calculator. It is an online device that can help you compute your monthly installment amount. You can calculate your EMI at the present rate using the personal loan EMI calculator. After calculating the interest towards the repayment you can apply for the loan. To apply for the you need to fill the application form. The application form is available at the bank branch. The customer can even apply for the loan online
The candidates applying online need to fill in the following details-
- Personal Details along with the photograph
- Details of Co-obligant/ Guarantor along with recent photograph
- Profession Details
- Income Details
- Details of Assets and Liabilities
- Purpose of taking the loan
- Repayment Details
Along with the application form, the customer has to submit the documents. The list of documents that are to be provided are as follows:
Documents Required
Identity Proof - PAN Card/ Passport/ Election Card/ Photo Identity issued by Government, Defence Services, Public Sector undertaking/ Driving Licence/ Photo Credit Card/ Employee’s ID Card, Letter/card issued by UIDAI containing the details of name, photograph, address and Aadhaar number
Income Proof - Bank Statement for last 6 months, post dated cheques and electronic clearing mandates, legal documents as stipulated by the finance company, collateral security as advised by the finance company, any other document as advised by the finance company
Residence Proof - Bank Account Statement/ Latest Electricity Bill/ Latest Telephone Bill/ Latest Credit Card Bill/ Employer’s letter certifying current mailing address/Passport (valid)
Signature Verification- Valid Passport /Pan Card/ Processing Fee Cheque/ Banker's Verification Letter
It is after the thorough verification of the documents that the loan is sanctioned. The customer’s eligibility plays a pivotal role in disbursal of the loan. The eligibility of the applicant depends on various factors such as age, income, savings, credit history and job stability. The loan application is approved by the bank if everything is according to the eligibility standards determined by the Bank.
An interesting fact I learned from this blog which is how it promotes how personal loans are easy to get. I have surveyed some sites and came across Early Salary which provides personal loan interest rates lower than other firms. If you wanna know more simply visit there!
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