A Personal Loan can be extremely useful for people who need some quick cash. This loan is disbursed to people in need of money, and the reasons can be anything – from family functions to medical emergencies, anything can be covered in this loan scheme.
Ujjivan Small Finance Bank is a subsidiary of the Ujjivan Financial Services Limited, and this bank is the first Small Finance Bank in India to offer such a scheme of Personal Loans. The loan was launched across 14 Tier I and Tier II cities in the nation, with the extensive list including cities like Coimbatore, Mysore and Kochi. The bank previously only offered Home Loans and Business Loans, and this is a new addition to its products.
There are some amazing features to the loan which make it an extremely enticing opportunity for customers looking for Personal Loans. This includes a no collateral feature, which can come in handy for many customers. Collateral is usually asked by the bank as security so that the borrower is entitled to repay the loan – however, many Personal Loan Schemes by other banks too which does not require any collateral from the borrower. The zero collateral feature of the bank can come in handy for people looking for a quick disbursal of the loan.
The interest rates of the loan are extremely competitive and are among the lowest in the industry. This can help increase the number of prospective customers for the bank since the monthly burden on the pocket of the borrower is reduced substantially with this feature.
The repayment options available for the borrower are also extremely flexible, making it a customisable one. The loan repayment tenure can be anywhere from as less as 12 months, to as long as 60 months. This means that customers can choose to repay the entirety of their loan by taking a larger chunk of money from their incomes and finish the dues in 12 months or choose to spread it across a period of 5 years and balance their finances accordingly.
The paperwork required for the loan is minimal, and the process is completely digitised. Many banks still have a paperwork trail to be followed if you are to apply for a loan, and this can be a time-consuming process too – the disbursal of money can consequently take a lot of time. However, the Ujjivan Small Finance Bank Personal Loan is a recently conceptualised one, so the process is completely digitised too. This means that the loan can be approved in a period as less as 3 days, or 72 hours.
Another feature is that there is a loan protection insurance plan extended by the bank for those who are looking to avail the loan facility.
The loan amount disbursed by the bank is not as large as some of the privatised or nationalised large banks operating in the nation, but it is still an extremely practical amount for those who are looking for quick money. The Personal Loan amount ranges from a minimum of Rs. 50,000, to a maximum of Rs. 15,00,000. The borrower can apply for any loan amount within this range, but the final say on how much should be disbursed to the borrower depends upon the discretion of the bank.
As detailed earlier, the loan tenure for the loan ranges from a minimum of 1 year to a maximum of 5 years. The bank primarily decides the loan tenure, but the needs of the borrower are also taken into account. There are multiple factors which are taken into account by the bank when deciding the loan tenure, including the loan amount, income of the borrower and the likes. All of these factors together decide the tenure of the loan given to the borrower.
This loan is primarily meant for salaried professionals, which translates to people who have a constant job and a salary every month. The age of the person must be between 22 and 59, to be eligible for the loan. The net monthly salary of the person should also be more than the minimum wage prescribed by the state, in order to avail this service. The age of the person plays a role in the loan tenure too, since older people may have to finish their dues before they have to retire from their salaried jobs.
To get this loan, you will need to have a few documents ready as the bank requires your proof of address and income. You will need to have any of documents like Passport, Aadhaar Card, Driver’s License or Voter’s ID, along with a copy of the PAN card for address proof.
As the income proof of the person, he will
need to submit the salary slips for the past three months detailing your
income. You should also submit the bank statements for the past six months, of
the salary account or the operational account under your name.
In absence of other documents you can Avail Loan on Aadhaar Card. For, Aadhaar is a mandatory document to apply for a loan in India.
Applying for a Personal Loan can be a confusing ordeal, considering the number of options available and all the decision that have to be made regarding this. However, worry not – you can simplify the process in a great deal by visiting their site. The website has listed all the options available, and you can choose the one best for you. There are loan specialists also available, to make the process of applying for the loan easier for you. These loan specialists will hold your hand and guide you through the entire process, and stay with you until the loan amount is disbursed.