- Couldn't get a personal loan as you're working in proprietorship/partnership firm? Don't worry, there are some lenders for you!
- They offer you loans based on your income and repayment potential
India’s corporate landscape is diverse with several large, small, medium and micro enterprises. Not only that, if you look into the classification, the landscape will be seen even more diverse with private/public limited companies, as well as proprietorship and partnership firms. While there’s no problem for lenders giving out personal loans to individuals working in private or public limited companies if they meet the necessary eligibility criteria, they hesitate doing so for those working in proprietorship or partnership firms. But there are few who trust them with a personal loan. Want to know who they are? Let’s know it in this post.
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So, Which are Those Lenders?
Well, they are none other than Fullerton India and IDFC First Bank.
Do They Place Any Specific Condition for a Personal Loan?
Yes, there are a few conditions that employees of proprietorship and partnership firms need to meet. Check out those conditions below.
- Employees must have a job stability of at least 2 years
- They must have their own home
- The minimum net monthly income should be ₹25,000
Rest all conditions, such as a good credit score, are the same that you find at other lenders.
How Much Loan Can You Get from Fullerton India and IDFC First Bank?
It will depend mostly on your income and repayment potential. The proposed Equated Monthly Installment (EMI) must stay within 50% of your in-hand income. As you could see above the minimum salary required is ₹25,000, so your loan amount should be such that the EMI does not go beyond ₹12,500 (50% of 25,000). Even if they agree to lend beyond that threshold, it will be better to use a bit of your savings to ensure the EMI remains within the 50% bracket. The reason being the repayment capability will weaken with the increase in the EMI.
How Do These Lenders Calculate the EMI on Your Personal Loan?
The EMI is dependent mostly on the interest rate that lenders charge on the loan. If you talk about Fullerton India, it charges personal loan interest rates of 14%-33% per annum. On the other hand, IDFC First charges 11.69%-15% per annum. The eventual rate will depend on your net income, repayment capability, location, employment stability or existing loan obligations, if any. The better you score on these points, the greater are chances of accessing the loan at a lower rate, which will eventually reduce your loan outgo.
Documents Required to Obtain Personal Loan from Fullerton India & IDFC Bank
Identity Proof – PAN Card/Voter ID/Passport/Driving License/Aadhaar
Residence Proof – Voter ID/Passport/Driving License/Aadhaar
Home Ownership Proof – Home Purchase Agreement Papers, Electricity Bill in the Borrower’s Name
Office Residence Proof – GST/Sales Tax/VAT Registration
Income Proof – Last 3 Months’ Salary Slips/Last 6 Months’ Bank Statement/ Latest Salary Certificate
How to Apply for a Personal Loan at These Lenders?
You can apply using either the online or offline application mode. Irrespective of the mode you opt for, you must mention your personal and professional details in the application form. The best online tool to apply is Wishfin, a portal that brings to you the best of personal loan offers to compare and choose from. After you submit the application, Wish experts of Wishfin will contact you and forward your application to the lender you apply at. An executive will come to collect your documents. If all goes well, you can get the loan disbursed to your account within a week’s time.