There are loans that are specifically tailored for the unemployed potential borrowers. What they only need is that they must be at least 18 years old at the time of application for such loan. Moreover, they must have an active bank account which must be at least three months old. They must also bear self residential proof and proof of income.

It is generally a herculean task for an unemployed person to gather an amount of money to initiate a business. But, to start up, such aspirants can always look for personal loans in India. Normally, unemployed people in India are not in a position to secure an asset for procuring loans. So, such personal loans are normally unsecured loans which do not call for securing valuable assets. However, as such loans do not always call for security, they bear relatively higher rate of interest.

Besides utilising such personal loans in India to start up a business, they can also be utilised to pay medical treatment bills, purchase a car or bike, renovate homes, planning for dream vacation etc. The loan sought depends on the credit report of the respective seeker. This indicates that it could really help the potential borrower if he gets a copy of his credit report prior to applying for one such loan. One must also verify the credit report to ensure that there is no any error in it. Any mistake on it can affect the terms of ones loan, particularly when there is any negative indication. However, an aspirant who is beside himself to start up a business but unable to initiate just because of bad credit can look for loan tailored for bad credit in India. With the aid of such bad credit business start up loans a bad credit aspirant can plunge into his dream business. Basically, such loans are of two types– secured and unsecured.

The business start up loans generally require a thorough business plan and a lot of details pertaining to ones financial position. If the potential borrower needs the fund faster, he can get it though the loan is without a security.

Procuring a loan indicates that one should shop around first, and then sign it only after one is sure that it is a good deal. By devoting certain time on the Internet one can get several on-line quotes for personal loans in India in a very short time. While applying for such loan one should make time to compare things like the interest rates, time duration that one has to repay the loan, and the amount of money one can get. One should even consider the overall costs as well in case one gets a loan.

Every one of us has one time or another used a personal loan to pay off their medical expenses when money falls short or when they lack medical insurance to cover the costs. How ever, now, there is a more suitable loan product for this purpose; this is in the form of general medical loans. These products are tailored to meet a borrower’s inclusive medical bills. Some time due to lack of money some urgent medical procedure which could have saved a person is postponed due to lack of money. Fortunately, this should no longer be a hurdle, medical loans have stepped up to take care of this and can be used for any type of a medical procedure.

All types of procedures can be taken care off by the help of the medical loans. Even if you are you are covered by your insurance, or you are covered by such medical schemes like NHS and you want your favorite doctor to operate on you, then you can go ahead and apply for a medical loan for financing the operation.

How ever, you should be aware that medical loans are normally used for financing elective treatments, for instance plastic surgery or cosmetic treatments which not covered by your insurance or the NHS. These treatments can only be covered only if they occur under certain circumstances (accidents, burns or diseases cosmetic problems, and others)

The interest charged on loans for financing a full medical procedure is significantly low if compared to other loans, such as the ones imposed on credit cards. To add more on this, medical loans are easier to budget for because the amounts to pay on monthly bases are fixed. You also have the option of deciding how much you want to be repaying when the loan falls due with your lender. Medical loans are both secured and unsecured. When you take a secured medical loan, your asset acts as the pledge against the loan advanced. The rate of interest here is lower as compared to unsecured loans. You can also get whatever amounts you require as long as your asset is valuable enough. The more valuable to higher the loan amounts that can be advanced to you and the opposite is true. When you take out the loan in the unsecured form, the amounts that can be advanced are limited. The limitation normally is pegged to your monthly income and your ability to make the repayment installments.

With so many different loans to choose from, what would make people choose unsecured personal loans? One of the deciding factors may be that you don’t have to put up any collateral when you take out an unsecured loan.

Unsecured loans do not use your property as security for the loan; lenders only rely on your obligation and also your ability to pay. For a number of people, this type of loan is a lot more appealing as they don’t have to worry about lenders having any rights over their home. As well as homeowners who don’t want this, unsecured loans are also suitable for people who don’t own their own home like renters or council tenants as they don’t need a property for security as secured loans require.

Of course there are risks involved with all loans and this one is no different. So that the lenders know they will get the money back and as quickly as possible, they will charge customers a much higher interest rate than a loan that needs security from a property.

Another down side of unsecured loans is that they take a little longer to arrange than other loans. This is because lenders will thoroughly check your credit details due to there being no other security needed for these loans. Your credit history and your credit rating will all be checked carefully to determine what sort of customer you will be.

When choosing your loan, make sure you take time to consider your options and circumstances properly. Read the agreement properly because if there are any other costs, this is where you will find out about them. It is also in the agreement where you will find out about any early settlement charges that the lenders apply. This is a charge for paying back the loan earlier than the date agreed and they can sometimes be quite considerable.

For people in need of extra credit, a personal loan is often one of the first choices to consider. Personal loans can provide finance for whatever you want, be it a car, home improvements etc. They also provide the ideal solution for paying off existing debts in one go, providing you find a loan with a good interest rate. Here are some things to consider when choosing personal loans.

How much to borrow?
Always try to borrow as little as you can and aim to pay it back in the shortest amount of time. Borrowing over long periods spreads the debt and decreases your monthly repayments, but it also dramatically increases the amount of interest you pay.

Check your finances to ensure that you can afford to pay back the monthly repayments comfortably.

Interest
Go for loans with the lowest APR (Annual Percentage Rate). Your rate will normally be fixed for the duration of the loan, which means that the amount you pay each month will remain the same. One disadvantage of this could be that you could be paying more than those who take out the same loan in six months time.

Credit History
Before a lender will consider you for a loan, they will need to give your credit history the once over. They need to make sure that you pose little financial risk to them. A poor credit history doesn’t necessarily mean you won’t be accepted, but you will probably have to pay a higher interest rate.

Insurance
Loans insurance will cover your monthly repayments in the event of unemployment or ill health. Insurance is expensive so think carefully as to whether you really need it or not. Also, ask about exclusions and small print which could make it difficult to make a claim.

People’s personal preferences lead them to take out loans. Loans are financial facilitators. It helps you making your financial decision upright. What would happen, wouldn’t it? If there is only one way out to loan accessing? Those who are strong enough to prove their legitimacies by guaranteeing security find it easy to avail loans. Or those who just unable to do so, they yet get good chances of securing Unsecured Personal Loans for their personal purposes.

To obtain these loans is not much hassle. Nevertheless, there are some factors which are anticipated from borrowers to qualify. Your loan provider expects your good credit scores for the loan. If your credit is good enough to make your lender convinced, you will not get any problem at such loan processing. Through checking your credit report, your creditor takes account of your financial viability. Later your personal information regarding your employment-ability with present circumstances is scaled up.
Once, if your loan application is approved, the money will be deposited directly into your bank account. You avail these loan benefits for a period ranges from six months to ten years. For peace of mind, you can request for a range of payment protection plans on your unsecured loans. You are required to choose from the lenders available. You can apply for such loans online and offline, though online is preferred. You simply select the plan that suits best to your needs.

Many of us worry about finding solutions to our problems and dealing with personal loans is not an exception. Some of us land on giving up to those problems when we find time to quit and stop solving those problems. Others simply keep on trying and do not rest until they find the exact solution to their financial problems. They do not understand the change of approach that is necessary at this certain points.
The Interest Rates
Interest rates charged on loans can be different from one lender to another. The first thing to remember, it is worthy enough to make comparisons for you to be able to get the best deal. Generally, the definite amount that a lender can borrow is depending on the actual range of circumstances which includes your personal income, your outgoing expenses, credit rating and also the status of your present employment.

Choosing the Best Solution
The type of loan you will take will entirely depend on you. It will be wise to examine all the necessary aspects when you are planning to apply for one. Applying for a personal loan will require you to present information that will prove your qualifications. Secured loans will always ask for collateral and homeowners are the best for this type of loans. Bank statements, proof of earnings and identification are the basic requirements when applying for a personal loan. Choose a provider that will offer you the lowest interest rate in the market. The most competitive interest rate a loan provider can offer you is around 7 to 8%. There are also loan companies which can provide quick methods of releasing your loan.

Probing on the Details
Asking will always get you the answers you all need. When you are applying for a personal loan, it is always wise to ask about all the necessary details regarding your loan. There are many things that you all probably miss if you disregard even the smallest of detail. Repayment terms are one of the important things you should be well aware of. The methods on how you are going to pay back your loan should always be within your capacity. You can always ask your loan provider if you are applying for a personal loan if they include insurance and get the cheapest rate they have in offer. It will never hurt to ask if there are ways of repaying your loan earlier than scheduled without getting redemption penalties. The details on your loan as well as the rules and condition are very important; better put them on top of your checklist.

Shop Until You Find
If you have time to spare to shop for the best deal on your personal loan, you better take it. Shopping for the best personal loan provider and stopping only when you have finally find the best is the only way to get the best deal in town. Comparing loan quotes between several providers before applying for a personal loan will help you end up with the one that can offer you the cheapest loan with the lowest interest rate as well. Today, applying for a personal loan is made even easier with the help of the internet and comparing interest rates are faster with financial comparison sites. These days, applying online is one of the quickest ways of securing a loan.

Finding a Reputable Loan Provider
When applying for a loan, one of the things to put on top of your list is the reputation of the loan company you are going to deal with. The search for the best loan deal should always go with finding a reputable loan company as well. The checklist of necessary things when you are applying for a personal finance related product can go on and on. As long as you prioritize the most important things, you can’t go wrong. Applying for a personal loan can be as easy as ABC, as long as you know exactly how to go through with it.

The Repayment Periods
Amongst other things to remember and to consider is that repayment periods are not the same with every lender. Most lenders propose repayment conditions of between one and five years. Nonetheless, you will find others that offer mainly up to seven or even ten years. Take into consideration that the longer your repayment period is, the lesser are your monthly repayments and then you could be able to extend your payments for a longer period of time.

Comparing Lenders
Many people think that they cannot afford to take out a loan but it is merely not the truth. There are so many low interest rates and inexpensive loan offers that you can avail of, you only have to find and search for it. You also have to know what you are looking for and where you can be able to save at every loan offers.

Loans are not at all too costly to obtain them, you just have to remember and understand every loan offer that will suit and will work best for you. As long as you recognize what you are capable of, in terms of payments, you will be able to find for personal loans with assurance and get something that in terms of personal finance actually works.

The personal loans aid the borrowers to meet bulk personal demands. Personal demands that you have awaited for loan such as buying an expensive car, weddings, going for holidays in exotic destinations, educational expenses of children, embellishing the house, consolidation of debts, dispersing the numbers of bad credits and like wise can be executed in a simple manner. Bad credit holders are also benefited by this scheme and can derive the same benedictions.

CENT Buy Loan for Purchase of Consumer Durable Things

Purpose

To purchase all kinds of consumer durable articles including furniture and fixtures at residence.

Eligibility

All individuals of age 18 years and above who are

a) All Resident Indian individuals who are –

* Permanent salaried employees of Central / State government / Local self government / Defence staff / employees of PSU / Large Corporates / reputed establishments.

* Permanent employees of Govt. aided schools, Colleges, Universities, hospitals and other educational institutions.

* Self-Employed Persons / Independent Entrepreneurs who have regular source of income.

* Farmers irrespective of land holding engaged in production oriented agriculture activities and in other allied activities.

Finance may be extended individually or jointly with spouse who has regular source of income. Income of spouse may be added to calculate eligible loan amount.

The employees of proprietorship/partnership firm and other small organizations not having job security and persons employed on contract basis are not eligible for loan under the scheme.

Minimum Income Criteria

Salaried Persons: Gross Monthly income Rs.10,000/-

Other than Salaried Persons: Gross Annual

Quantum of Finance

In case of salaried employees with monthly income, the loan eligibility is 12 months gross monthly income as per previous month’s salary.

In case of other individuals, average annual Income worked out as per Income tax return of last two years.

However the maximum loan amount should not exceed Rs.2.00 lakhs.

Net Take Home Pay

The sanctioning Authority should ensure that the applicant complies to Net Take Home Pay criteria of 40% i.e. Net Take home Pay after accounting for all deductions including the installment of proposed loan should be minimum 40% of Gross salary.

Zonal Manager is empowered to relax the Net Take Home Pay criteria up to 35% of Gross salary on case to case basis taking in to account income and repayment capacity of the borrower.

Margin

15% of the cost of Articles.

Security

For loan upto Rs.50,000/-, hypothecation of goods / articles purchased out of loan.
For loan above Rs.50,000/-, in addition to hypothecation, Collaterals equal to 50% of loan amount should be obtained.

Repayment

Repayable in 48 EMIs commencing from the next month of disbursement.

In case of Farmers, the repayment term may be fixed as per harvesting period.

Post dated cheques for the entire repayment schedule should be collected at the time of disbursement of loan.

In case of permanent salaried employees of Govt/Local Self Govt/PSUs/Defence, the condition of post dated cheques may be waived in case -

* they produce an irrevocable undertaking from their employer to deduct the monthly installments from their salary and remit the same to the Bank,
OR

* whose salary is routed through the accounts with Branch

Branches should ensure to encash the cheques on due dates and credit the amount to the loan account.

Rate of Interest

BPLR + 1.00%

Reduction in rate of interest by 0.50% may be considered in case liquid securities like NSC/KVP/FDR are offered equal to the loan amount. NSC/KVP should be marked lien of our Bank at the concerned Post Office.

Guarantee

Personal guarantee should be obtained whose worth is not less than the loan amount except in case of any collateral security is offered, the market value of which is not less than the loan amount.

Sanctioning Authority

All delegates within their sanctioning authority.In case of Staff applicant the sanctioning authority will be as under:

* If applicant is staff and officers up to scale III working in the region and Regional Office, loan will be sanctioned by Regional Manager.

* If applicant is staff and officers up to scale III in ELBs / VLBs, loan will be sanctioned by respective Chief Manager/Assistant General Manager.

* If applicant is officers in scale IV & V in Zone (including Assistant General Managers posted at Zonal Office, Regional Office, ranches, RRBs) and staff and officers in Training Colleges and other Administrative Offices will be sanctioned by Zonal Managers.

* In case of staff and officers posted at Central Office the loan will be sanctioned by CM(CSD) and above subject to the condition that the sanctioning authority is one scale above the applicant.

Processing Charges

1% of the loan amount subject to minimum of Rs.100/-.The amount should be recovered at the time of disbursement.

Disbursement

The borrower should submit a declaration that he/she will be purchasing the articles as mentioned in the loan application and the said declaration will be attached to the hypothecation agreement and would form part of agreement. On the basis of the said declaration the amount may be disbursed to the borrower to the credit of his account.

Documentation

Letter of Hypothecation.

Articles of Agreement.

Letter of interest and interest revision letter.

Letter of guarantee wherever applicable,

Letter of undertaking from the borrower for comprehensive Insurance of the articles with bank clause to cover the risk of theft fire, destruction etc.

In case of liquid security like NSC/KVP/FDR/LIC etc are offered, proper charge in favour of bank should be created.

Sources : http://www.centralbankofindia.co.in/

Unsecured Personal Loan is designed such that it does not require any collateral to get approved. Basically collateral acts as an assurance towards the lender. If the borrower fails to repay the borrowed amount, then lender seizes the asset to recover the amount. This means borrower’s property is under considerable threat. But without any involvement of collateral loan applicants are virtually risk free. There is another benefit of it. The amount applied for gets approved instantly since the task of evaluating the collateral value does not take place.

This loan option is very much popular among certain sections of borrowers who cannot afford to pledge any collateral as they do not have any. Borrowers like tenants and non homeowners can apply for the loan without any fuss.Information about SyndSaral Loan From Syndicate Bank is given here.

SyndSaral Loan From Syndicate Bank  

Eligibility : Permanent employees of Central / State Government Offices / Undertakings / reputed companies / firms / educational institutions. Non-salaried class like Doctors / Engineers / Lawyers / Chartered Accountants / Architects / Consultants and Pensioners

Quantum for Clean loan :

Salaried Class : 12 months gross salary with salary credit and maximum Rs.3 lakhs with letter of undertaking from the employer

Pensioners :

* Aged < 65 yrs: 10 months gross pension with a maximum of Rs. 2 lakhs.

* Aged 65-70 yrs: 6 months gross pension with a maximum of Rs. 1 lakh.

* Aged > 70 yrs: 5 months gross pension-max. Rs.50000/-

Non-salaried Class : 50% of gross annual income as per Income Tax Assessment Order (ITAO) (100% of average gross annual income, as per ITAOs of immediate preceding 3 years) or 60% of value of immovable property to be mortgaged to the Bank (subject to maximum amount of Rs. 5 lakhs)

Quantum for Secured Loan : 80% of purchase price of NSC / IVP / KVP if completed 24 months from date of purchase and 65% of purchase price if completed 13-23 months);
80% of surrender value of LIC policy / purchase price of RBI Relief Bonds / other Government securities.

Repayment : Maximum 60 months in case of loans and overdraft against Govt. securities. to be renewed once in 2 years

Rate of interest w.e.f. 01.04.2004:

* For Clean Loans: 13.50%; For Clean Overdrafts: 14.00%.

* For Secured Loans: 12.50%; For Secured Overdrafts: -NA-

SyndSaral, fully secured by approved securities (IVP, NSC, KVP, LIC policies, RBI Relief Bonds etc) with suitable margin, interest to be charged at 11.00%

Requirements :

* Salary Certificate / letter of undertaking from the employer.

* ITAO for non-salaried class / property documents where ITAO is not available.

* Third party guarantee acceptable to the bank.

* Valid mortgage of immovable property/ pledge of securities.

* Post dated cheques in exceptional cases.

Sources : http://www.syndicatebank.in/

Small personal loans can be availed to meet a borrower’s immediate personal needs. For instance pay off credit card or other store card bills, home repair or dealing with sudden medical emergencies. Depending on his/her circumstances, a borrower could avail secured or unsecured small personal loans.

A small personal loan helps ease the financial burden of a borrower to a large extent as it provides instant cash with repayment periods ranging from two-four weeks. It is popular option among borrowers who need to address their needs immediately. Also, small personal loans don’t require credit checks and allows a borrower instant access to cash by just filling a simple application form. Information about personal loans from Corporation Bank is given here

Personal Loans from Corporation Bank 
1. Eligibility

Permanent employees of Central / State Government Offices, Profit making Public Sector Undertakings and Public Limited Companies, Schools, Colleges, Universities and Research Institutions, Pensioners drawing pension through our Bank and individuals with income other than salary/pension

2. Purpose

To meet any genuine personal expenses relating to family functions, education, travel, marriage, medical etc.

3. Loan Amount

i) For salaried persons the maximum loan amount shall be 12 times the take-home pay, where an undertaking letter has been obtained from the employer -

[a] to route the salary through our Bank till the loan is closed in full

or

[b] to deduct and remit the loan instalments to the Bank every month until closure of the loan in full.

ii) For salaried persons whose salary is routed through our Bank, but where no undertaking letter from employer is not available, the maximum loan amount shall be restricted to 6 times the take-home pay.

iii) In case of pensioners drawing pension through our Bank, the maximum loan amount shall be restricted to 6 months’ pension.

iv) In case of individuals with income other than salary/pension, the maximum amount of the loan shall be 25% of the gross annual income.

4. Rate of Interest

14.25% p.a. w.e.f 01.06.2007

5. Security

Nil

6. Guarantee

Suitable Third Party guarantee to be obtained in all cases.

7. Repayment

Within a maximum period of 60 months in Equated Monthly instalments. Total deductions [including the deduction towards the proposed Loan ] not to exceed 50% of the take-home pay.

8. Service Charges

1.00% of the loan amount subject to a minimum of Rs.250/-

Sources : http://www.corpbank.com/