Frequently Asked Questions

Frequently asked questions

 
How can I repay my personal loan?

Personal loan can be repaid in equal monthly instalments or EMI. You can provide a post-dated cheque or can give a standing order with your bank or through electronic transfer.

What is an EMI?

EMI or Equal Monthly Instalment is the amount that a borrower pays each month towards an outstanding loan to clear off the debt within a specific timeframe. EMI includes principal and interest.

Is part- prepayment allowed on my personal loan?

Personal loans can be prepaid in parts or as a whole at any stage. Some banks may charge a prepayment penalty for the same. Some banks do not allow part-prepayment. So, check all the documents before finalising on the loan with the bank.

Will I need a guarantor to take a personal loan?

No, you will not need a guarantor to take a personal loan.

Can I club my income with my spouse to take a personal loan?

Yes, you can club the income of your spouse to boost your eligibility to avail a personal loan.

How will I be eligible for a relationship discount?

If you have been a customer for a particular bank for a while, then the bank might reduce the personal loan interest rate or other such charges. Some banks will also provide you additional services.

Do I need to open a bank account to service my personal loan?

If you do not have an account with the bank, it is not mandatory to apply for one. But, if you apply for a loan with your existing banker, then you will be eligible for a relationship discount.

How do I stop executives from calling me to let me know about other loans?

Some banks let you register yourself for ‘Do Not Disturb’. If you opt for this, the executives will not disturb you with cold sales calls.

What is the best way to apply for personal Loan?

A: The best way to apply for an personal loan is by using the online loan application tool at LoanMrt.com The tool can be accessed on this page allowing users to choose personal loan from various banks and NBFCS as per their selection.

Can I Track my Loan Application?

A: LoanMrt.com offers it’s loan applicants an active tracking tool through both email and SMS allowing them to track daily updates of their loan application.

Is my Data Safe with LoanMrt.com?

A: LoanMrt.com is India’s premier financial marketplace and takes utmost care in ensuring that all data is sent in electronic form with high level of encryption. LoanMrt.com does not share data with any third party other than the financial institution.

Is LoanMrt.com Personal Loan Tool Free?

A: Yes LoanMrt.com personal loan calculator tool is totally free and the portal does not charge any fee for its services from users.

 
How can I repay my Business loan?

Business loan can be repaid in equal monthly instalments or EMI. You can provide a post-dated cheque or can give a standing order with your bank or through electronic transfer.

What is an EMI?

EMI or Equal Monthly Instalment is the amount that a borrower pays each month towards an outstanding loan to clear off the debt within a specific timeframe. EMI includes principal and interest.

Is part- prepayment allowed on my Business loan?

Business loans can be prepaid in parts or as a whole at any stage. Some banks may charge a prepayment penalty for the same. Some banks do not allow part-prepayment. So, check all the documents before finalising on the loan with the bank.

Will I need a guarantor to take a Business loan?

No, you will not need a guarantor to take a Business loan.

Can I club my income with my spouse to take a Business loan?

Yes, you can club the income of your spouse to boost your eligibility to avail a Business loan.

How will I be eligible for a relationship discount?

If you have been a customer for a particular bank for a while, then the bank might reduce the Business loan interest rate or other such charges. Some banks will also provide you additional services.

Do I need to open a bank account to service my Business loan?

If you do not have an account with the bank, it is not mandatory to apply for one. But, if you apply for a loan with your existing banker, then you will be eligible for a relationship discount.

How do I stop executives from calling me to let me know about other loans?

Some banks let you register yourself for ‘Do Not Disturb’. If you opt for this, the executives will not disturb you with cold sales calls.

What is the best way to apply for Business Loan?

A: The best way to apply for an Business loan is by using the online loan application tool at LoanMrt.com The tool can be accessed on this page allowing users to choose Business loan from various banks and NBFCS as per their selection.

Can I Track my Loan Application?

A: LoanMrt.com offers it’s loan applicants an active tracking tool through both email and SMS allowing them to track daily updates of their loan application.

Is my Data Safe with LoanMrt.com?

A: LoanMrt.com is India’s premier financial marketplace and takes utmost care in ensuring that all data is sent in electronic form with high level of encryption. LoanMrt.com does not share data with any third party other than the financial institution.

Is LoanMrt.com Business Loan Tool Free?

A: Yes LoanMrt.com Business loan calculator tool is totally free and the portal does not charge any fee for its services from users.

  1. What are the courses in India for which education loans are available?

    Any of the following courses, as offered by recognized universities, is eligible for an education loan in India-

    • Professional courses including Engineering and Medicine
    • Management courses (both full time and part time)
    • ICWA, CA, CFA etc.
    • Courses conducted by IIMs, IITs, IISc, XLRI. NIFT,NID etc.
    • B.A/B.Com/M.A/M.Com/MCA/MCM etc.
    • Architecture, Agriculture studies, Fine Arts and Designing etc.
    • Hotel and Hospitality.
    • Courses such as SAP , ERP , GNIIT , Air Hostess Training programmes etc.
    • Distance learning programs and online certifications.
    • Degree/Diploma courses like Aeronautical, pilot training, shipping, etc.,
    • Aircraft Maintenance Engg, Pre-Sea Training courses and the like.
    • Nursing and Para Medical courses (includes admission via management quota).
    • Courses offered by reputed institutes that assure employment and are Govt. certified.
    • Courses offered in India by reputed and certified foreign universities.
    • All courses listed here- www.ugc.ac.in , www.education.nic.in and www.aicte-india.org
  2. What is the age restrictions for subscribing to an education loan?

    Generally, there are no restrictions. Most banks and financial institutions do not impose this rule. However, certain lenders do mark an age limit spanning from 16-35 years.

  3. Aside from the fee payable to the school/college, what other expenses are covered by the loan?
    • Towards the purchase of books, uniforms, equipment and instruments.
    • Purchase of computers/laptops, if deemed necessary for the completion of the course.
    • Fees paid for Exams, Library, Laboratories, Hostel, etc.
    • Building fund, Caution deposit, Refundable deposit (must be supported by receipts/bills).
    • Costs incurred in travel, for studies abroad.
    • Additional costs that are required to successfully complete the course, including but not limited to, Study tours, Thesis work, Projects, etc.
  4. Does taking an education loan entitle me to any tax benefits?

    Not immediately. However, after you start repaying, you are free to deduct the loan interest amount from your total income when calculating tax.

  5. How does the bank track my educational progress through the course period?

    The applicant is expected (and mandated) to submit his/her progress reports periodically. The progress reports could be mark sheets or a suitably attested letter from the applicant’s school/college.

  1. What are the courses in India for which education loans are available?

    Any of the following courses, as offered by recognized universities, is eligible for an education loan in India-

    • Professional courses including Engineering and Medicine
    • Management courses (both full time and part time)
    • ICWA, CA, CFA etc.
    • Courses conducted by IIMs, IITs, IISc, XLRI. NIFT,NID etc.
    • B.A/B.Com/M.A/M.Com/MCA/MCM etc.
    • Architecture, Agriculture studies, Fine Arts and Designing etc.
    • Hotel and Hospitality.
    • Courses such as SAP , ERP , GNIIT , Air Hostess Training programmes etc.
    • Distance learning programs and online certifications.
    • Degree/Diploma courses like Aeronautical, pilot training, shipping, etc.,
    • Aircraft Maintenance Engg, Pre-Sea Training courses and the like.
    • Nursing and Para Medical courses (includes admission via management quota).
    • Courses offered by reputed institutes that assure employment and are Govt. certified.
    • Courses offered in India by reputed and certified foreign universities.
    • All courses listed here- www.ugc.ac.in , www.education.nic.in and www.aicte-india.org
  2. What is the age restrictions for subscribing to an education loan?

    Generally, there are no restrictions. Most banks and financial institutions do not impose this rule. However, certain lenders do mark an age limit spanning from 16-35 years.

  3. Aside from the fee payable to the school/college, what other expenses are covered by the loan?
    • Towards the purchase of books, uniforms, equipment and instruments.
    • Purchase of computers/laptops, if deemed necessary for the completion of the course.
    • Fees paid for Exams, Library, Laboratories, Hostel, etc.
    • Building fund, Caution deposit, Refundable deposit (must be supported by receipts/bills).
    • Costs incurred in travel, for studies abroad.
    • Additional costs that are required to successfully complete the course, including but not limited to, Study tours, Thesis work, Projects, etc.
  4. Does taking an education loan entitle me to any tax benefits?

    Not immediately. However, after you start repaying, you are free to deduct the loan interest amount from your total income when calculating tax.

  5. How does the bank track my educational progress through the course period?

    The applicant is expected (and mandated) to submit his/her progress reports periodically. The progress reports could be mark sheets or a suitably attested letter from the applicant’s school/college.

How much funding can I expect in terms of the car loan?

This factor differs from bank to bank. While some banks offer the complete 100% of the vehicle’s on-road price, banks such as SBI offer upto 90% of the vehicle’s ‘on-road’ price. Generally however, the minimum loan amount will be equal to Rs.1 lakh.

Can I pre-pay the entire loan amount? What are the conditions involved?

Yes, you can prepay the entire car loan and save on vital interest payments in the future. However, most banks will allow the pre-payment option after you have chalked off 6 months on your loan tenure. Plus, you will be expected to pay a small fee as pre-payment penalty that will be dependent on the leftover loan amount.

What car models are financed by the standard car loan in India?

Unless otherwise specified, almost all small to medium sized cars, Sports Utility Vehicles (SUV) and Multi Utility Vehicles (MUV) come under the purview of car loans available in India. However, as mentioned, refer to the loan brochure for exceptions to this rule.

When applying for the car loan, do I need a guarantor/ security?

Almost all car loan products available in India are secured loans, with the procured vehicle itself acting as the customary security. Most lenders in India will not insist upon any guarantors, however, if your annual income does not match upto the expected requirement, then you may be expected to sign-up a co-applicant and/or guarantor.

What are the commonly available car loan repayment tenures?

Repayment tenures usually range from 12 months to 84 months (1-7 years).

 
 
 
  1. When do I make my home loan application?

    There is no particular right time for making your home loan application. As soon as you have figured out your budget and zeroed down on the property that you want to buy, you should apply for home finance.

  2. Is visiting the lending bank compulsory to avail home finance?

    Yes, mostly. Although a lot of loan processing work has been shifted to online platforms, still a loan applicant is required to visit the lending bank branch at least once to formally close the loan processing formalities. Many private banks have started sending their representatives to borrowers’ place to get documents and forms signed and verified.

  3. Will the lending bank provide the entire cost of the property that I wish to buy?

    No. Generally, banks only lend 80% of the cost of your property. The rest 20% is to be borne by the loan borrower. However, to ease out the process for customers, most banks have broken up this ration into 10-80-10 so that at the time of availing the loan, customers are only required to pay 10% of the total cost and the rest is paid by the bank.

  4. When does the repayment period start?

    Repayment of loan starts after the entire home loan is disbursed to the borrower. In case of under-construction properties banks allow payment of the partially disbursed amount. Towards this partially disbursed loan amount, customers are free to either repay the principal and interest amount both or just the interest amount or none at all.

  5. Can loan repayment be made ahead of schedule?

    Yes. All banks allow pre-payment of home loans. Some banks charge a pre-payment fee for that while others do not.

  6. Do I have the right to choose between base rate and MCLR for my home loan request?

    Current home loan borrowers who have a running home loan account can choose to continue with base rate or switch to MCLR. New home loan borrowers need to avail the new MCLR rates which are subject to change every set interval of time as mandated by the RBI.

  7. How long does it take for home loan to get sanctioned?

    Your home loan will get sanctioned as soon as all the required documents are submitted and verified successfully. This may take anywhere between 10 to 30 days.

  8. Do I get to avail tax benefits on home loan?

    Yes. Home loans are a great instrument to avail tax benefit. This is offered to both the interest and principal components of home finance. Under section 24(1) interest repayment of Rs.1,50,000 is eligible for exemption and on the same housing loan a principal amount of Rs.1,00,000 is eligible for exemption from tax.

  9. What is meant by EMI?

    EMI stands for Equated Monthly Installments. An EMI is made up of two components, principal and interest. Any loan availed by a borrower is repaid in EMIs over the loan tenure.

  10. What collateral do I need to furnish as security?

    Since home loan is a huge loan amount and the tenure also is long, hence, almost all banks ask borrowers to furnish some collateral as security against the loan. This include the papers of property for which loan is being sought, some other property papers, any fixed deposit schemes or insurance schemes etc. that are on the loan borrower’s name.

  11. Can I apply jointly for a home loan with my spouse? Will both our incomes be considered for loan quantum?

    Yes. You can apply jointly in your and your spouse’s name. Both of your incomes will be considered for determination of loan quantum.

  12. What documents do I need to submit to avail home loan in India?

    Generally, all banks ask for proof of address, proof of identity, bank account statements and salary details from home loan borrowers. This list may differ a bit from one bank to another.

  13. How can I make EMI payments against my home loan?

    Home loan EMI payments can be made to the bank either by using offline channels like cheque, demand draft and cash or by availing the net banking facility that all banks offer to their home loan customers. Post dated cheques and Standing Instructions are another popular way to make EMI payments.

  14. If I deposit my property documents as security with the bank, when will I get those back?

    Any property document that you submit as security collateral is returned to you only once the entire home loan amount is repaid and the home loan on your name is closed.

  15. Can I avail home finance for renovation or construction of house?

    Yes. Home loans are offered under various sub-heads. Housing finance for renovation of property or construction of house is also offered by all major banks in the country.

  16. Can I switch from fixed to floating rate of interest and vice versa during the tenure of my home loan?

    Yes. Most banks allow switching between fixed and floating rates. However, customers may be charged a particular fee for the same.

1. Do I need to visit the bank to avail a two-wheeler loan?

Absolutely not. In fact, in the case of a dealership, the showroom will take care of the things related to the loan sometimes with a representative from the bank available in the showroom. Else, you can apply online. While some loans require soft copies of documentation, others will simply send a bank representative to collect the documentation and even discuss the product with you.

2. When do I know that it is the right time to apply for a two-wheeler loan?

The only way you can find it out is by calculating your finances, both currently and for the future. Use an EMI calculator to do so and get an estimated number in your head for monthly repayments. Once you think you can afford it, nothing should stop you, unless you have a terrible credit history.

3. Will the bank pay for the whole bike or scooter?

Different banks offer different margins of finance. While some may offer you only 80% margin, do not be surprised when you get 90% covered as well. It is essential to note that most top banks will offer you the full cost of your new vehicle, including other costs such as insurance and accessories.

4. Is it essential to take a personal accident insurance when riding a two-wheeler?

Absolutely yes, since riding a two-wheeler has a lot at stake against riding a closed four-wheeler.

5. Can I pay the full loan repayment before the tenure for the loan ends?

Yes, sure you can. You might be charged a nominal pre-payment charge for the same.

6. Will I be allowed to choose between MLCR and base rates?

The bank’s terms and conditions on the same actually, rule over that. However, different banks will give you different numbers, resulting differently. So, to be absolutely sure, refer to their product brochure or literature.

7. What is two-wheeler hypothecation?

Hypothecation is a process of guaranteeing possessions as a security or a collateral for the settlement of your loan. In other words, it is an entitlement against the pledged asset as a security of a debt in a contract between you and the bank.

8. How do I cancel my two-wheeler hypothecation?

The steps for two-wheeler hypothecation are as follows:

  • Once your loan is completely repaid, keep the receipt as a proof.
  • You will be given two forms of Form 35 from the lender (bank or NBFC) and fill them up duly as directed.
  • Get a postal cover and put a Re.12 stamp on it. Remember to put your name and contact details on it.
  • You will be levied Rs.100 as the processing fee for HP termination. Now, you will get the receipt after disbursement.
  • Attach your bike’s original RC book, copy of your insurance document, and duplicate copy of valid pollution under a control certificate along with the aforementioned postal cover and submit it to the Regional Transport Office.
  • You will get a receipt from the RTO as a proof of your submission.
  • You will be sent the RC book by speed post in less than a week.

Please keep the copy of all the original papers that you have sent.

9. Will I be allowed to switch from a floating rate to a fixed rate of interest or the other way round for my two-wheeler loan?

Yes, some banks make it possible to do so. But, they also charge a conversion rate for the same. You can find out about this fee by checking online or by contacting a bank representative.

10. If I am 18 years old, but I don’t have a job yet, can I apply for a two-wheeler loan?

Yes, some banks may allow you to do so, as long as you have a collateral or a guarantor to support you in case you are not able to make loan repayments on time. As a student, you can apply for loans, but do note that they are treated as special cases and are completely at the bank’s discretion.

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