Personal Loan FAQs

There are many factors that drive the interest rate for a Personal Loan. Some of the tips to have the best interest rate on loan are as follows:

• Meet all the eligibility criteria and submit the required documents
• Maintain a high Credit Score
• Have a good repayment track record and credit history
• Maintain employment stability and have a steady income

Choose Grahaan capital Personal Loans for the following benefits:

1. Loans up to 40 lakhs* depending on eligibility
2. Attractive low fixed interest rates
3. Flexible repayment tenures between 12-72 months
4. Online and Offline both process of application available
5. Minimal documentation
6. No Guarantor or Collaterals

Our dedicated support team is always happy to help you. You will get support in every step of your loan procedure. You can contact us here and we will get back to you within 24 hrs.

A. For Salaried Individuals:

1. Proof of Identity/Residence: Any one of the below Official Valid Documents (OVD) can be accepted as Current / Communication address proof only.

• Passport
• Driving License issued by Regional Transport Authority
• Voter's Identity Card issued by the Election Commission of India
• Letter from National Population Register containing details of name and address
• Proof of possession of complete AADHAR Card
• NREGA Card.

2. Latest 3 months* Bank Statement (where salary/income is credited)

3. Salary slips for the last 3 months*

B. For Self-Employed:

1. Proof of Identity/Residence: Any one of the below Official Valid Documents (OVD) can be accepted as Current / Communication address proof only.

• Passport
• Driving License issued by Regional Transport Authority
• Voter's Identity Card issued by the Election Commission of India
• Letter from National Population Register containing details of name and address
• Proof of possession of complete AADHAR Card
• NREGA Card

2. Income Proof :

• Audited financials for the last two years
• Latest 6 months* Bank Statement

3. Office address proof:

4. Proof of residence or office ownership

5. Proof of continuity of business.

* Conditions applied as per policy.
* Grahaan Capital reserves the right to call upon additional documents at its discretion.

At Grahaan Capital, personal loan documentation processing is done quickly. Assuming that all required Personal Loan documentation is submitted in a full and organized manner, it is usually completed quickly—in a matter of hours to days.

EMI stands for 'equated monthly instalment'. It is the monthly amount you must pay your lender to repay a loan or debt, such as a home loan, a car loan, a personal loan, etc.

An EMI calculator can help borrowers estimate their monthly payments of loans based on the principal amount, interest rate, tenure, and other factors.

EMI is a monthly sum of the principal amount plus the interest rate to repay the loan over a period of time. Remember, the formula to calculate EMI is similar for most retail loans, like home loans and car loans. Let’s calculate the EMI with an example:

Say, X has availed a loan of INR 10 lakh to build a house. The bank has offered X a home loan at an annual interest rate of 7.2% (floating) for a tenure of 10 years, then the EMI he will be paying on a monthly basis is calculated using the following formula:

EMI = P x R x (1+R)^N / [(1+R)^N-1]

P: Principal loan amount = INR 10,000,00
N: Loan tenure in months = 120 months
R: Interest rate per month [7.2/12/100] = 0.006

EMI= INR 10,00,000 * 0.006 * (1 + 0.006)120 / ((1 + 0.006)120 – 1) = INR 11,714.

Therefore, X would be paying the EMI of INR 11,714 every month for 10 years. Overall, the total payment X will pay is INR 14,05,702, of which INR 4,05,702 would be the total interest charged on the principal borrrowed sum.

Below are the factors that determine the Personal Loan EMIs:

Loan Amount: EMIs is the monthly amount a borrower pays for the loan amount they borrowed from the lender. Personal Loan EMI is influenced by various factors such as loan amount, tenure, credit score and type of interest rate. A higher loan amount will result in a higher EMI amount, whereas a lower loan amount will lead to a lower EMI amount.

Tenure: Long-term tenure equals a lower EMI, and short-term tenure will have a higher EMI.

Credit Score: With a higher credit score, there are chances that the borrower will be eligible for a lower interest rate. This implies that they will have to pay lower EMIs. On the other hand, a lower credit score will impact your interest rate, directly impacting your EMIs.

Type of interest rate: Fixed and floating interest rates determine the EMI payments. While a fixed interest rate is a pre-determined interest rate that will be fixed for the entire loan tenure, a floating interest rate varies as per RBI policy action.

Once you enter the required details into the EMI calculator, click the ‘Monthly Breakdown’ button. This will give you access to the amortization schedule, which is a detailed table with a clear breakup of your monthly payments consisting of EMI amount, principal payable, and interest payable. With this, you know how much interest has already been paid and will be paid in the future, which will help you quickly identify the best time to prepay your loan.

It is essential to pay your EMIs on time. If you fail to do so, you will have to pay the penalty for missing payments. Also, any missed payments will negatively affect your credit score and may hinder your chances of getting a new loan. Use a Personal Loan EMI calculator and calculate your EMI beforehand to avoid such scenarios.

The duration of a Personal Loan EMI (Equated Monthly Installment) is determined by the loan tenure or the repayment period agreed upon between the borrower and the lender. It represents the length of time over which the borrower will make regular monthly payments to repay the loan.

Here are some key details of the duration of a Personal Loan:

• The loan tenure for Personal Loans varies and is typically stated in terms of months or years. Common loan tenures range from 12 months to 60 months or even longer, depending on the lender’s policies and the borrower’s preferences.
• The duration of the Personal Loan EMI plays a significant role in determining the monthly repayment amount. Longer loan tenure generally results in smaller EMIs since the total loan amount is spread over a greater number of months. However, this also means that the borrower will end up paying more in total interest over the extended repayment period.
• On the other hand, a shorter loan tenure may result in higher EMIs, as the loan amount is divided over a shorter period. While this means the borrower will pay off the loan faster and pay less in total interest, the monthly repayment amounts can be higher, potentially impacting the borrower’s monthly budget.

It is important for borrowers to carefully consider the duration of their Personal Loan EMI and choose a tenure that aligns with their financial goals and capabilities. They should evaluate their income, expenses, and financial obligations to determine the loan tenure that strikes a balance between manageable monthly payments and overall interest costs.

Prepayment refers to making an extra payment towards your loan principal amount before the scheduled due date. While prepayment can reduce the overall interest cost and the loan tenure, it does not directly reduce the Equated Monthly Installment (EMI) amount. Let’s understand this in more detail.

When you make a prepayment, the extra amount goes towards reducing the principal balance of the loan. As a result, the outstanding loan amount decreases, which can lead to interest savings over the remaining loan tenure. However, the EMI amount remains the same unless you specifically request a recalculation of the EMI with the lender.

For example, let’s say you have a Personal Loan with an EMI of ₹ 5,000 and a loan tenure of 36 months. If you make a prepayment of ₹ 50,000, the outstanding principal amount is reduced by that amount. As a result, the interest charged on the remaining principal decreases, which can result in interest savings over the remaining tenure. However, the EMI amount of ₹ 5,000 remains the same unless you request a recalculation.

If you want to reduce your EMI amount, you have a few options:

• Tenure Reduction: By making prepayments towards your loan principal, you can reduce the loan tenure. A shorter tenure leads to higher EMI amounts but results in faster loan repayment.
• EMI Recalculation: You can contact your lender and request a recalculation of the EMI based on the reduced outstanding principal balance. This can lead to a lower EMI amount, making it more manageable for your monthly budget.
• Refinancing or Balance Transfer: Another option is to explore refinancing or transferring your loan to another lender who offers lower interest rates or more favorable terms. This can help you obtain a new loan with a lower EMI amount.

It's important to note that each lender may have their own policies regarding prepayment and EMI recalculation. Some lenders may charge prepayment penalties or fees, while others may allow partial prepayments without any charges. It's advisable to check with your lender to understand their specific policies and procedures.

Yes, it is generally possible to pay all the remaining EMIs of a loan at once, commonly known as making a full prepayment. By paying off the outstanding loan balance in a lump sum, you can effectively close the loan and relieve yourself of future monthly EMI obligations. However, it's important to consider a few factors before deciding to pay all the EMIs at once:

• Prepayment Charges: Some lenders may charge a prepayment penalty for paying off the loan before the scheduled tenure. This penalty is typically a percentage of the outstanding loan amount and is intended to compensate the lender for the interest they would have earned had the loan been repaid as per the original schedule. Check your loan agreement or consult with the lender to understand if any prepayment charges apply.
• Interest Savings: By paying off all the EMIs at once, you effectively reduce the outstanding loan balance and save on future interest payments. This can result in significant interest savings, especially if the loan has a long tenure or carries a high-interest rate.
• Financial Impact: Consider your overall financial situation before making a full prepayment. Ensure that you have sufficient funds to pay off the loan without compromising your financial stability or neglecting other financial obligations. Evaluate the impact of paying off the loan on your cash flow and financial goals.
• Loan Tenure: Paying off all the EMIs at once can lead to the early closure of the loan and free up your monthly budget from loan repayments. This can provide financial relief and increase your disposable income, allowing you to allocate the funds towards other financial goals or investments.
• Communication with the Lender: If you decide to pay off all the EMIs at once, inform the lender in advance. They can provide you with the necessary instructions and assist you with the loan closure process. Ensure you obtain a formal closure statement or No Objection Certificate (NOC) from the lender once the loan is fully repaid.

If you pay more than the Equated Monthly Installment (EMI) amount on your loan, the additional amount is considered an extra payment toward the loan principal. This can have several potential outcomes, depending on the terms and conditions of your loan agreement and the policies of your lender. Here are some possible scenarios:

• Reduced Principal Balance: The extra amount you pay above the EMI is deducted from the outstanding loan principal. As a result, your loan principal decreases faster than the regular EMI payments alone. This can help reduce the interest charged on the remaining principal balance, resulting in interest savings over the loan tenure.
• Shortened Loan Tenure: By making additional payments towards the loan principal, you effectively reduce the outstanding loan balance. This can lead to shorter loan tenure, as the loan will be repaid faster than the original schedule. Shortening the loan tenure can result in interest savings and help you become debt-free sooner.
• Interest Savings: Paying more than the EMI can result in interest savings over the loan term. By reducing the principal balance earlier, you reduce the overall interest that would have been charged on the loan. This can lead to significant interest savings, especially for long-term loans or loans with high-interest rates.
• Prepayment Penalties: Some lenders may charge a prepayment penalty or fee if you make extra payments that exceed a certain limit or if you repay the loan before the scheduled tenure. It's important to review your loan agreement or contact the lender to understand if any prepayment penalties apply.
• EMI Adjustment: Depending on your lender's policies, the extra amount you pay may be adjusted towards future EMIs. In this case, your future EMI amounts may be reduced to reflect the additional payment made. This can help lower your monthly repayment obligations and provide financial relief.

You must have a full-time job at a central and state government, PSU, MNC, Listed, Unlisted Public Ltd., Private Limited Company, LLP, or companies listed internally to get a Grahaan Capital's Personal Loan.

You might be required to provide post-sanction paperwork, such as an executed loan agreement or ECS mandate, once your personal loan has been approved. This may frequently be completed digitally and is essential to the Personal Loan application procedure.

Yes, you can prepay or foreclose your Personal Loan after the payment of at least one EMI. However, charges (and taxes) will be applicable for foreclosing a personal loan.

No part prepayment is allowed. For prepayment of your Personal Loan, please visit the nearest Grahaan Capital branch. We request you to carry the following documents to complete the process:

• Request letter signed by the loan applicant
• PAN Card (if the mode of payment is cash and the amount is more than Rs 50,000)
• Payment can be made through cash, cheque or demand draft.

You can apply for a 24x7 Instant Personal Loan online without the need to submit hard copy of your documents. Similarly, if you are eligible for a pre-qualified Personal Loan, you can apply for it with minimal to zero documentation. To apply for a Personal Loan at an Grahaan Capital branch you need to submit the basic documents.

You can submit your latest salary slips, audited financials, or income tax returns, reflecting your earning capacity to meet the Personal Loan eligibility requirements.

While applying, original KYC documents are not mandatory; authenticated photocopies are accepted for the Personal Loan documents list.

Pre-approved Personal Loans often benefit from a reduced documentation process, with minimal or no additional documents required for the disbursement.

As this is an unsecured offering, you don’t need to submit any collateral or assets.

Personal loan is an unsecure loan which comes with huge number of benefits. Some of the common reasons to borrow include paying medical bills, consolidating high-interest debt, funding higher education, and renovating a home etc.

Applicants with a good financial profile and credit history enjoy quick approval of their loan application. In such cases, loan disbursal can happen in just one working day after approval.

Depending on your profile, you can qualify for a sanction of personal loan up to ₹40 Lakh.

Yes, once you apply online and get approval, the entire disbursal process happens electronically, and the money is credited to your bank account.