Standard Chartered Personal Loan
Standard Chartered Bank is a multinational bank having established its Indian operations in 1858. It has its head office in London. It is the largest multinational bank operating in India. This bank was formed by the merger of two banks in 1969, i.e. The Chartered Bank of India, Australia and China, and Standard Bank of British South Africa. This bank is engaged in banking and financial services in India. It is aggressive in retail lending and is very active in providing personal loans.
Who is Eligible for Standard Chartered Personal loan?
Any person who has completed 21 years of age and has not completed 60 years of age can apply for Standard Chartered personal loan whether a salaried or a self-employed individual.
Purpose of taking Personal Loan
The personal loan can be taken for various purposes from paying fees for higher education of your children to paying for any medical emergency. You can take a personal loan for buying any consumer durable or two wheelers or four wheeler vehicle. Personal loan can come handy when you wish to go for holidays which were not budgeted.
The Quantum of Personal Loan available and Tenure for Repayment
The Standard Chartered Personal loans can be availed for a minimum of Rs. one lakh and based on your repayment capacity, which is determined on the basis of your income as well as any existing running loan, the same can go up to 30 lakhs.
The Standard Chartered Personal loan can be repaid over a period of 60, however, the minimum tenure available for repayment of the personal loan is 12 months The longer the tenure for repayment of the personal loan you choose, the higher becomes your eligibility in terms of the amount available for the same level of income. The tenure also gets restricted by your age at the time of making the Standard Chartered personal loan application as the repayment period cannot extend beyond 60 years of your age.
So for a person who has just competed for 58 years of age will not be able to get a loan tenure of more than two years. Though you may be eligible for longer tenure personal loan, you should decide on the ideal tenure on the basis of your probability of paying it earlier than the original tenure. Since the banks levy a steep prepayment charges for early payment of the loan, you may land up paying these charges and if you do not opt to prepay the personal loan while having surplus money to do so, you may have to pay higher interest charges as compared to the rate of returns your surplus funds may earn.
The Standard Charted personal loan is repayable through monthly Equated installments (EMI) over the entire tenure of the loan. For the same loan amount, the EMI shall be smaller for a longer tenure and vice versa. The EMI can be paid either by Electronic Clearing System (ECS) or by way of cheques issue favouring the Standard Charted Bank. The existing customers can pay it through direct debit to their saving or current account.
Rate of Interest and other Charges
Since personal loans are given without any security and carry a higher risk of default and thus the rate of interest charged on Standard Chartered personal loan is higher than other secured loans. The Standard Chartered Personal loans are available for interest rate ranging from 10.99% to 14.99 %. The rate of interest applicable will depend on various factors like your existing banking relationship with Standard Chartered Bank, your credit score and credit history.
If the credit score is low, you may have to pay a higher interest rate and vice versa.
In addition to the regular interest which you have to pay, the Standard Charted bank also charges a one-time processing fee payable @ 2% of the loan amount and which is deducted by the bank from the personal loan disbursed.
In case you decide to prepay the personal loan taken from Standard Chartered Bank, you have to pay a prepayment charges @ 5% as well calculated based on the amount outstanding. However, no prepayment is allowed during the first 12 months of the Standard Charted Personal Loan. You have to give the bank a notice of 21 days for repayment of the personal loan.
Special facilities for the existing customers
The existing customer of the bank gets a preferential rate of interest for the personal loan. Moreover, the existing customer has to comply with lesser formality due to its existing relationship and thus has to submit a lesser number of documents. Once you avail the Standard Chartered personal loans, you can take a top up loan on it after EMIs for six months have been paid.
How to apply for Standard Charted Personal Loan
You can make an application for Standard Chartered personal loan either in a physical application form or you can apply for the same online. For the online applicant, the bank offers a discount of 50% on the processing fee payable.
For, both the category of borrowers whether a salaried individual or self-employed have to submit some basic documents to establish their identity and residential address. These are called Know Your Customer (KYC) documents. KYC documents for identity cover PAN card, Aadhaar Card, Driving License passport and for address proof, it includes bank passbook, electricity bills, landline telephone bills having a current address on it.
For assessing eligibility and determining the repayment ability both the categories of borrowers have to submit a different set of documents. Salaried have to submit the copies of Form No. 16, bank statement and salary slips. The self-employed have to submit copies of ITR filed along with a copy of the profit and loss account and balance sheets for last two years.
The self-employed if professionally qualified have to submit copies of the qualifying examination as well as membership of the parent professional body. The self-employed engage in business have to submit some documents to prove registration of the business entity with government department like a copy of GST registration, registration under Shop and establishments laws etc.