Loan eligibility depends upon various factors. The main factor is your ability to repay. The bank would like that the instalment you pay should not exceed more than 30 to 40% of your net salary. Apart from that your profile in terms of residence and the place of your work also matter. You should be in the managerial cadre and residing in a location approved by the bank. Sometimes if you reside in a chawl or at places termed negative by the bank, your loan approval becomes very difficult.

Usually two types of charges are levied. Once when you are applying for the loan and once when you are preclosing the loan.

The fees when charged at the time of processing called as Processing Fees vary from 2-3% of the loan amount. This could be reduced if you have the ability of bargaining. the second charge is the prepayment penalty paid at the time of preclosure. This too varies from 2 –3 %. Similar to processing charges, you can also try to get this fees reduced.

The interest rate varies from bank to bank. It usually varies from 17 to 26% depending upon the policies and the scheme you opt.

Personal loans can be used for anything and everything. There is no restriction on the end use, so you could use the money to finance the latest DVD player or buy your wife a washing machine or anything which seemed impossible, can be funded through personal loans.

Personal loan is a short tenure loan. Most of the banks provide you loan for maximum 3 years (36 months). However there are options of 5 years (60 months) also.

At the time of applying for the loan, banks ask you to submit all the post dated cheques (PDC). The numbers of cheque leaves depend upon the tenure you opt. There is an option of prepayment after completing the lock-in-period of 6 months where you only have to pay the outstanding principal. However the option of part payment is not available

Yes, personal loans can be applied together with a co-applicant who can either be your spouse or your parents. This will help you to increase your income eligibility and you can avail a larger amount of loan. Your co-applicants income gets added to your income and the total is taken into consideration for calculating the loan amount you will be eligible for. So if you want a higher loan then you should apply jointly with a co-applicant.

Lenders offer relationship discounts if you already have a relationship with them. This means that if you are already banking with the lender from whom you want to avail a loan then they give you certain discounts in the form of reduction in interest rates or other charges.

They may even give you a free credit card with fees waived for the first year. Sometimes they even give you additional services