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/