RBL Personal Loan
RBL bank earlier known as Ratnakar Bank Limited is one of the oldest private sector banks in India. It was established in August 1943. RBL bank is engaged in various banking activities including providing retail loans like home loans and personal loans.
Who can avail the RBL Personal Loan?
The RBL bank’s focus is on salaried people as far as personal loans are concerned. For being eligible to apply for RBL personal loan, you should have completed 25 years of age and your age should not be more than 60 years or the retirement age as per your terms of employment at the time of making the loan application. Moreover, your monthly income should be minimum Rs. 25000/- at the time of making the application. You should also have completed minimum service of one year with your current employer and should in aggregate have a minimum of three years experience.
RBL Personal Loan Amount Available
The RBL bank grants personal loan for a minimum amount of Rs. 1 lakhs and which can go up to Rs. 20 lakhs depending on the age and income of the borrower. Younger can get a higher personal loan as compared to people nearing their retirement. Moreover your loan eligibility can come down in case you already have any loan being serviced. So in case, only a small amount is outstanding, you can enhance your eligibility by fully paying such small running loan.
The loan eligibility can be enhanced by opting for a higher repayment period at the same income level. You can also enhance the personal loan eligibility by getting an income of working spouse clubbed with your income. For being eligible for such clubbing to enhance the eligibility, the income of spouse should be properly substantiated and should be regular.
RBL Personal Loan Repayment Tenure
The personal loan from RBL is available for a minimum period of 12 months and the maximum period for which the personal loan can be availed is 60 months. The exact loan tenure available to you will depend on your age at the time of making the RBL bank personal loan application. The tenure for repayment of personal loan available would be so as to ensure that the personal loan is fully repaid by the time you turn 60 or you actually retire from your job. So in case you are 57 years of age when applying for the personal loan, the bank will give you loan tenure of 3 years only provided your retirement age is not lower than 60 years.
The repayment of the RBL personal loan is required to be done through Equated Monthly Installments (EMI) by way of ECS or direct debit to the bank account if you have an existing relationship with RBL bank. You can also issue post dated cheques toward payment of the EMI.
While selecting the tenure, you should keep in mind that you may prepay the personal loan before it prefixed tenure and may have to pay steep prepayment charges. Even if you do not prepay the personal loan when you have surplus money left, you may have to pay a higher rate of interest on your existing personal loan as compared to what your surplus money may earn.
RBL Personal Loan Interest Rates and Processing Fee
Since the personal loans are given without any security the rate of interest charged by the banks is always higher than the rate applicable to any other secured loans. Presently the rate of interest on personal loan ranges between 14.50% to 23%. The rate of interest is dependent on your credit history and credit score, type of employment and who is your employer. Borrowers with higher credit score or working with reputed listed or MNC companies get personal loans at lower interest rates than other people.
In addition to the regular interest on the personal loan was taken you to have to pay one-time processing fee up to 2.50% of the loan applied for. The processing fee is deducted from the loan amount at the time of disbursement.
RBL Personal Loan Documents Required
You need to attach some Know Your Customer (KYC) documents to establish your identity and prove your address. For your identity you can submit a copy of any of the documents lime Driving License, voter card, Passport etc.. For address proof driving license, voter ID, as well as passport, can be used here as well. However, in addition to these documents, in case, the address on these documents is not current, you can submit copies of telephone bills, banks statements copy of leave and license agreement, your property ownership documents.
In case the ownership documents are not in your name, you will have to establish the relationship with the owner of the property. In case you already have a bank account with RBL banks, you may not have to submit these basic KYC documents and thus ensure faster processing of your application. In addition to the above KYC documents, you have to provide the latest photograph as well as a copy of your PAN.
Salaried also have to furnish copies of salary slip for two months and form no. 16 with a copy of the banks’ statement for last six months where the salary is credited.
In case you want the income of your spouse to be clubbed with your income for enhancement of eligibility, you will have to furnish income proof of the spouse with the personal loan application form.
Prepayment of the Personal Loan
In case you wish to prepay the personal loan before its original tenure you can do so but only after EMIs for first 6 months have been paid. RBL bank offers better terms as far as foreclosure of the personal loan is concerned. For prepayment between 6 months and 12 months, a prepayment penalty @ 5% is levied on the amount outstanding. In case you prepay the personal loan after 12 months, you have to pay only 3% prepayment charges. The prepayment penalty is fully waved after 12 months in case the prepayment is being made from own funds and you have not defaulted in payment of the first 12 EMIs.