Personal Loan of 15,000

Needless to say, today, personal loans are one of the most accessible tools used for managing one’s finances. So, if you are contemplating a INR 15,000 personal loan, this article will help you scrutinise every little aspect of taking a 15,000 loan from the application process, to the documentation work. So, if you are a first-time borrower or someone who wants to understand the lending environment, this comprehensive take on availing personal loan is going to help you in your journey.

Why Do You Need a 15,000 Personal Loan?

Following are the reasons owing to which one may need a INR 15,000 personal loan. Take a look! 

• Emergencies: Any type of unforeseen circumstances from vehicle repairs, remodeling of your home, to wedding can require a quick influx of cash on the users part. 
• Bridging Monthly Expenses: A personal loan can also help in covering all the monthly essential expenses from rent, groceries to utility needs. 
• Educational Courses: INR 15,000 might be the right amount to pay for a short-term course, workshop, or online class that can enhance skills or open up new job opportunities.
• Business Needs: For budding entrepreneurs, this amount can help cover initial costs like buying inventory, marketing, or other start-up expenses.
• Celebratory Events: Events like birthdays, anniversaries, or other family celebrations can sometimes need a little extra budget, especially if unexpected guests are arriving or prices for essentials rise.
• Purchasing Appliances: Replacing or buying small household appliances like a microwave, mixer, or induction cooktop might fall within this range.
• Travel: An unplanned short trip or a weekend getaway can sometimes be managed within this budget, especially if you find last-minute deals or discounts.
• Debt Consolidation: If someone has multiple small debts with high interest, consolidating them into a single loan with a potentially lower interest rate on a 15,000 personal loan can be a strategic move.
• Paying Bills: Unexpectedly high utility bills or annual subscriptions can sometimes be more than anticipated, and a loan can help bridge the gap.
• Investment: While it’s unconventional and requires careful thought, some might take a loan to seize a limited-time investment opportunity that they believe will offer returns surpassing the loan’s interest.

15,000 Loan Interest Rates & Charges

When contemplating a personal loan, especially for a relatively smaller sum like ₹15,000, understanding the intricacies of the interest rates and associated charges is crucial. Let’s break down the components:

Interest Rates

• Rate Type: Interest rates for a 15,000 personal loan can be of two types – fixed or variable. A fixed rate remains constant throughout the loan tenure, ensuring predictability in monthly installments. Variable rates, on the other hand, fluctuate based on market dynamics or the lender’s discretion.
• Rate Percentage: The interest percentage is a critical factor in determining how much extra you’ll repay. Even for a ₹15,000 loan, a rate difference of a few percent can make a noticeable difference in the total payable amount.
• Factors Influencing Rate: Several factors determine the interest rate you receive – credit score, lender’s policies, loan tenure, and sometimes even the purpose of the loan.

Processing Fees

Most lenders charge a one-time processing fee to cover the administrative costs of processing your loan application. This can be a flat fee or a percentage of the loan amount.

Prepayment & Foreclosure Charges

If you decide to pay off your ₹15,000 loan earlier than the decided tenure, some lenders might levy a prepayment or foreclosure charge. This is to compensate for the interest they might lose due to early repayment.

Late Payment Penalties

Delaying or missing an EMI can lead to additional charges. These penalties can vary from fixed amounts to percentages of the overdue installment.

Loan Disbursal Charges

Some lenders might charge a fee for disbursing the loan amount to your bank account. This isn’t common, but it’s essential to be aware of.

Document Charges

Few lenders might charge for verification or for keeping your documents in custody, though this is not very prevalent.

GST

Keep in mind that some of these charges, especially processing fees, might attract GST, which would be added to the fee.

Comparison of 15,000 Personal Loan Interest Rates offered by Various Banks.

Eligibility Criteria for 15,000 Personal Loan

The eligibility criteria for a 15,000 personal loan, even for a relatively small amount like INR 15,000, can vary depending on the lender (banks, NBFCs, or online lenders) and the country or region’s financial regulations. However, in India, the following are common eligibility requirements for availing a personal loan:

• Age: Most lenders have an age criterion, typically requiring borrowers to be between 21 and 60 years of age, though this can vary.
• Employment Status: Lenders prefer applicants with a stable source of income. This could be from salaried employment, self-employment, or a business. Duration of employment or business operation might also be considered.
• Minimum Monthly Income: Even for a small loan, lenders may have a minimum income requirement to ensure that the borrower can repay the loan.
• Credit Score: A credit score, which is maintained by credit bureaus like CIBIL in India, plays a crucial role. A good credit score (typically 750 and above in the Indian context) can not only increase your chances of loan approval but might also fetch you favourable interest rates.
• Existing Debts: Your current financial obligations, including other loans or credit card debts, will be assessed. A lower debt-to-income ratio is preferred.
• Residential Stability: Some lenders might check the duration you’ve stayed at your current residence, preferring those who’ve shown residential stability.
• Documentation: While not an eligibility criterion per se, having the necessary documentation ready can expedite the loan approval process. This might include identity proof (Aadhaar, PAN), address proof, recent salary slips (for salaried individuals), bank statements, and tax returns.
• Bank Account: Having a functional bank account, preferably with the lending institution, can be beneficial.
• Previous Repayment History: Lenders may look at your previous loan repayment history or any instances of defaults to assess your creditworthiness.
• Purpose of the Loan: While personal loans are typically unsecured and can be used for a variety of reasons, some lenders may still want to know the purpose of the loan.

15,000 Personal Loan for Payment Tenures

Lending institutions like banks provide personal loans with diverse repayment periods. It’s common for these loans to have a starting duration of one year, and it’s rare for lenders to go below this 12-month benchmark. Moreover, many lenders stipulate an initial period, often 3 to 6 months, during which borrowers cannot settle the loan early. On the longer end, five years is a standard maximum term for personal loans, though there are lenders who might extend this to seven years or even more.

The monthly repayment amount, or EMI, is inversely related to the loan duration. That is, a lengthier loan period results in smaller monthly payments, but the interest portion in these EMIs is more substantial. In contrast, a shorter loan period leads to heftier EMIs, with a more significant portion going towards the principal amount. When deciding on the duration of a personal loan, it’s crucial to strike a balance. A short period might strain your monthly finances with high EMIs, while an overly extended duration could mean prolonged financial obligations.

How to Get a 15,000 Personal Loan?

Obtaining a personal loan for INR 15,000 or its equivalent requires a specific approach. Here’s a concise step-by-step guide to getting a personal loan for this amount:

• Assess Your Need: Confirm why you need the loan and ascertain that a personal loan is the most suitable solution.
• Check Credit Score: Before applying, understand your credit score. A better score can enhance your approval chances and potentially get you favorable rates.

Research Lenders

• Traditional Banks: They may offer competitive rates, especially for existing customers.
• Non-Banking Financial Companies (NBFCs): They might be more flexible but could have higher interest rates for a 15,000 personal loan.
• Online Lenders: Digital platforms can provide quick, hassle-free loans.
• Compare Rates & Terms: Examine interest rates, processing fees, and other conditions among various lenders.

Review Eligibility Criteria: Check that you meet the lender’s prerequisites, such as age, income level, and credit score.

Prepare Documents: Typically required are:

• Identity Proof (e.g., Aadhaar, PAN)
• Address Proof (e.g., utility bills)
• Income Proof (e.g., salary slips for salaried individuals)
• Apply: Opt for online or offline application, based on the lender’s process.

Wait for Approval

The lender will assess your application, verify documents, and then approve if everything aligns.

Loan Disbursal

Once approved, the loan sum will be credited to your bank account.

Repay Diligently

Adhere to the repayment plan to avoid penalties and protect your credit score.

Documents Required for 15,000 Personal Loan

For a personal loan of INR 15,000 in India, the documentation requirements might be slightly more relaxed compared to larger loan amounts. However, lenders still need certain essential documents to verify the applicant’s identity, income, and residence. Here’s a list of commonly required documents:

Identity Proof (Any one of the following):

• PAN Card
• Aadhaar Card
• Voter’s ID
• Passport
• Driving Licence

Address Proof (Any one of the following):

• Aadhaar Card
• Passport
• Utility Bills (like electricity or telephone bills, not older than 3 months)
• Voter’s ID
• Rental Agreement (if living in a rented property)
• Bank Statement with the address mentioned

Income Proof (Relevant documents based on employment type):

For Salaried Individuals:

• Latest salary slip or payslip (usually of the last 3 months)
• Employment certificate or a recent job confirmation letter

For Self-Employed Individuals:

• Income tax returns of the last two years
• Profit and Loss account and balance sheet for the last two years, attested by a CA
• Business continuity proof (like a licence or business registration certificate)
• Bank Statement: Usually of the last 6 months, showing financial transactions and salary credits (if salaried).

Passport-size Photographs:

• Typically, 2 to 3 recent photographs are required.

Proof of Employment:

• Employment ID (for salaried individuals)
• Business registration or licence (for self-employed individuals)
• Credit Score Report: While not a document you’d provide, the lender will often access your credit report from credit bureaus like CIBIL in India to assess your creditworthiness.
• Application Form: Most lenders will have their application form, which you’ll need to fill out with personal, employment, and financial details.

Features

Key Points that Lenders Consider While Offering Rs 15,000 Personal Loans:

• When offering personal loans, even for smaller amounts like INR 15,000, lenders assess several factors to gauge the borrower’s creditworthiness and the potential risk associated with the loan. Here are the key points lenders typically consider:
• Credit Score: Perhaps the most crucial factor, a good credit score (usually 750 and above in the Indian context) indicates a history of good financial behaviour and timely repayments.
• Repayment History: Lenders check your past repayment record, looking for any defaults or late payments, which might indicate a higher risk.
• Income Level: A steady income assures lenders that you have the means to repay the loan. They’ll often look at your salary slips, bank statements, or business income documents.
• Employment Status and Stability: Lenders prefer borrowers with stable jobs or businesses. For salaried individuals, a history of frequent job changes might be a red flag. For the self-employed, the duration and stability of the business matter.
• Debt-to-Income Ratio: This ratio indicates how much of your income is already committed to other debts. A high ratio might suggest that you’d struggle to manage another repayment.
• Residential Stability: Lenders sometimes gauge the stability of your residence, preferring borrowers who’ve stayed at one address for longer periods.
• Purpose of the Loan: While personal loans are usually unsecured and multipurpose, lenders might still ask the reason for the loan, especially if it’s a substantial amount.
• Existing Relationship with the Lender: If you already have an account or another product with the lender, they might be more inclined to offer you a loan, given the existing relationship and trust.
• Age: Younger borrowers might be seen as riskier due to potentially unstable careers, while very old borrowers might be nearing or in retirement, which can impact steady income. Each lender will have an age bracket they cater to, usually between 21 and 60 years.
• Documentation: Proper and authentic documentation, like ID proof, address proof, and income proof, gives lenders confidence in your legitimacy.
• Loan Duration: Even for a small loan amount, the tenure or duration of the loan can influence a lender’s decision. Shorter durations can mean higher monthly installments but are seen as less risky for lenders.
• Market Conditions: External factors, like economic downturns or fluctuations in market conditions, can influence lending decisions and criteria.