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Personal Loan Interview Questions & Answers - Learning Mode

Personal Loan Interview Questions & Answers - Learning Mode

Unsecured loans (called signature loans) are advanced on the basis of the borrower's credit-history and ability to repay the loan from personal income. Repayment is usually through fixed amount installments over a fixed term. Also called consumer loan. Personal loan, a loan to meet your current financial needs, is also referred to as an unsecured loan as there is no security against it. It is usually taken by borrowers who are looking for quick and easy loans with manageable interest rate and minimum documentation.

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Personal Loan Interview Questions & Answers - Learning Mode
Try Personal Loan Interview Questions & Answers - Exam Mode
Question: I work in the mining industry and my bank has rejected my personal loan on the grounds that my job is risky. Can they do such a thing or are they discriminating?

Answer: A high risk job means your life is at risk so banks are well within their right to deny you a personal loan. Being a highly unsecured loan banks are relying on your earnings for possible repayments. A high risk job means your repayment capacity is also risky. If you switch a job to a routine one without any high risk involvement, your chances of loan approval with the same salary goes high. You can opt for other loans like loan against a fixed deposit or loan against insurance which are not that Source:
Question: Can a personal loan be converted into a secured loan?

Answer: If you are finding it hard to repay your personal loan you request your bank to open concert in into a secured loan. You will need to offer an adequate collateral security as per your loan amount. With the high interest rate of personal loan a better idea would be to liquidate some investments and repay your personal loan completely instead of getting it restructured. Source:
Question: I need a personal loan but bank is seeking copy of ITR. As I am just a starter with low salary and non taxable income I have not filed my ITR. What can I do?

Answer: Banks usually seek a copy of your ITR as part of their eligibility norms for loans. Since you do not have ITR the chances of getting a loan go down substantially. You can file your ITR this financial year even if your income is not taxable and try again. Source:
Question: I have a personal loan default but I am looking to sell of some assets. Will the bank give me some time?

Answer: You should talk to your bank for flexible repayment options to make it easier for you to repay your pending loan amount. If you have a good track record with the bank you can discuss the reasons behind your repayment difficulty and banks are usually more than happy to offer flexible repayment options. Source:
Question: Which is a better idea when it comes to a personal loan, a short tenure or a long one considering a long tenure may mean lower EMI?

Answer: Personal loans come with various tenure ranges but just because a loan is offering you a long tenure do not blindly opt for it. The higher your loan tenure, the higher will be your final repaid amount for the loan. The sooner you can repay your loan, the better it is not only for the bank but for your credit score as well. So choose the shortest tenure period which is comfortable for you instead of opting for a long tenure. Source:
Question: Can you tell me the details of the Federal Bank e-loan scheme?

Answer: Federal bank is offering instant loans under its instant e-credit schemes. Federal bank account holders can simply login to their net banking account and opt for an instant loan up to Rs. 5 Lakhs almost instantly. With its fully automated digital loan, the loan processes facilitated and approved online without having to visit the bank branch. Source:
Question: I have heard about a personal loan scheme for senior citizens by SBI. Can you share any details on the same?

Answer: Banks offer discounted interest rates for loans for senior citizens. Such low interest schemes have been initiated to allow senior citizens raise finances at low interest rate to take care of any immediate requirements such as medical expenses in their sunset years. State Bank of India offers personal loans to pensioners drawing pension from any of their branches with people up to 72 years of age. The scheme is available for both central and state government employees. The loan amount available Source:
Question: I am a railway employee and my monthly income is Rs. 22,000. I need a personal loan of Rs. 4 lakhs and prefer to get it from SBI. Kindly guide me if I am eligible to get one.

Answer: Assuming you have a minimum of 2 years work experience with your current firm, you would be eligible for a maximum loan of Rs. 2,64,000/- According to SBI's personal loan rules, a person is eligible for 12 times of the Net Monthly Income for salaried individuals. Please note that the rate of interest for personal loan in SBI would be 18.5%. Source:
Question: How is the Personal Loan eligibility calculated?

Answer: Most banks and non banking financial companies have their own eligibility criteria when it comes to checking the eligibility for a personal loan. For a salaried individual most banks usually offer a personal loan up to 60 times your net monthly income. If you have any other existing loans, banks would subtract the EMI amount you pay from your monthly income to calculate your overall personal loan eligibility. Any leave travel allowance (LTA) and any medical allowance from your net monthly income Source:
Question: I need a loan of Rs. 5 Lakhs and i am getting a PL offer at 10% flat rate for a 5 year tenure. Is it a good option?

Answer: When other banks are offering Pl's at 16-17% getting a loan for 10% can be quite lucrative. But don?t forget it is the flat rate method.

You pay an interest of 10% on Rs.5 Lakhs which comes to Rs. 50,000. If you take Rs, 5 Lakhs for 5 years every year you will have to repay Rs. 1 Lakhs as principal plus Rs. 50,000 as interest. So this is an EMI of Rs. 12,500.

So over a 5 year period you are repaying Rs. 7.5 Lakhs which comes to an interest rate of 17.5%. So do your math and do Source:
Question: Can I take a personal loan for a home loan down payment?

Answer: Technically speaking yes you can do that as personal loan funds can be used as and where you need them. Financially speaking it may be a very bad idea as the high interest rates on loans like personal loans will only make repayment tougher with a higher chance of default. Rather create a financial corpus or look at liquidating some investments for home loan down payment money. Source:
Question: I am having trouble repaying my personal loan. Will talking to my bank help?

Answer: Yes you are better off talking with your bank and request for flexible repayment options. While banks have the power to restructure your loan, defer the payment of a couple of your loan EMIs or even offer you a onetime payment offer to help you get rid of your likely loan defaults, it all depends on your equation with the bank and your previous financial history. Source:
Question: Are instant personal loans available to everyone?

Answer: If you mean spot loans then no they are not available to everyone and limited to corporate clients and salary account holders. These loans use smart analytics to check your loan eligibility and offer loans at that very instance. Source:
Question: I have a pension account with Bank of India. I need funds for some medical emergency. Can I get a personal loan for pensioner?

Answer: Bank of India offers loan to pensioners where age does not exceed 75 years at the end of repayment period. So if you are below 75 years of age and have a pension account with any Bank of India branch as you mention, you should be eligible for a personal loan for pensioners offered by the bank. You can get 15 times of monthly pension with a maximum loan Amount Rs.5 Lakhs. If you receive your pension directly received at Branch from Treasury /DPDO you can get a loan of 15 times of monthly Pension Source:
Question: Who can apply for HDFC Bank 10 second loan? Is it a good idea to opt for a PL using the scheme?

Answer: HDFC Bank is offering the 10 second loan scheme under the bank's digital banking platform titled GoDigital. The 10 second loan scheme is made available only across digital platforms as banks are working overtime to ensure greater transactions through digital channels. All existing HDFC Bank customers get a pre-approved loan amount available to them. The loan amount is calculated depending on the personal profile of each customer and their financial credentials. The 10 second loan makes the l Source:
Question: Are HDFC bank spot loans worth considering?

Answer: It is hard to say yes or no to one particular bank loan scheme as it depends on many factors like your requirements etc. For sport loans, all you need to do is to walk to your nearest ATM, check your loan offer and get instant personal loan at that very instant. While spot loans offer instant cash but you as a loan borrower do not get to know the terms and conditions for a loan. Also With spot loans everything is so instant that you do not have a chance to compare loans from other service provid Source:
Question: I need money for some personal use. I was all about to apply for a PL when a friend advised me to go for a loan against my car as it is cheaper. What do you suggest?

Answer: Your friend is actually correct in his assessment. If you opt for a personal loan, the unsecured nature of the loan means you will be charged higher than a loan against car which is a secured loan. Axis Bank for example charges a rate of interest of 14.50% for loan against car compared to a 15.50% to 24% interest rate charged for personal loans. So a loan against car works out to be far cheaper than a personal loan which makes it a better option for a financial emergency. But before you apply no Source:
Question: Can I prepay my personal loan? My friends told me there is prepayment penalty involved. Are there any charges applicable for prepaying a PL?

Answer: Yes, your friends are right, most banks and non banking financial companies charge a penalty free for prepayment of your personal loan. Also banks and financial institutions offering personal loans do not allow partial repayment of the loan. Being charged a higher interest rate, banks ideally want the borrower to continue paying their equated monthly installment or EMI for the full tenure. The average penalty for prepayment of personal loan ranges from 2 to%5 of the outstanding loan balance depe Source:
Question: I have applied for a personal loan with my bank and the terms and conditions are quite detailed. Should i consider it as a formality since i have no plans to default?

Answer: I would advise you to make it a point to read and understand the details of your loan terms and conditions. Do not sign on the loan terms and conditions in a hurry and discuss it with your legal consultant if needed.

If there is any dispute or misunderstanding between you and the lending institution, the fine print or terms and conditions of the loan are the final authority so why take a risk. Source:


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