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All about Shriram finance personal loan

[ecis2016.org] This article offers insights into various features, eligibility criteria, interest rates and other calculation charges, verification process, customer care and other FAQs.

Shriram Finance offers personal loans to salaried and self-employed individuals. Personal loans are essential financial instruments which come to our aid during various financial crises like money for house renovations, marriage or other ceremonies, sudden health problems, etc. With an affordable EMI repayment interest rate and tenure, Shriram Finance provides various personal finance solutions across India. 

This article offers insights into various features, eligibility criteria, interest rates and other calculation charges, verification process, customer care and other FAQs. 

Shriram Finance personal loan: Features

Shriram Finance personal loan is targeted towards both salaried and self-employed individuals. They could be new customers or pre-existing customers of the Shriram Finance group and its multiple entities. The following are the most notable features of the Shriram Finance personal loan scheme. 

Online application  

Like other NBFCs, Shriram Finance has also adopted an online application procedure. The online personal loan application procedure makes life easier with zero physical documentation or presence at the end of long queues. 

The online application procedure consists of a rapid eligibility check for the personal loan sanction, filling multiple fields, and immediate disbursal of the loan to your account once everything is in place. Online application, verification of multiple compulsory fields online, and finally the disbursal of the personal loan is Shriram Finance’s forte. 

Flexible tenure 

The repayment tenure of the personal loan granted by Shriram Finance is 12 -36 months. This flexible tenor enables the loanee to repay their loan amounts seamlessly with convenience. 

Multiple branches across India 

More than 2400 Shriram Finance branches are present all over India with a customer base of 7.5 million. Since its nation-wide presence ensures providing value and fantastic customer-centric support measures, Shriram Finance aces a lot of its NBFC peers. 

Collateral-free loan

Loans are of two types – secured and unsecured. Unsecured loans are those for which you do not have to provide collateral to the lender or have an asset class with the lender like a fixed deposit account against which they provide the personal loan. 

Shriram Finance personal loans are unsecured, i.e. collateral-free personal loans. You do not have to pledge any collateral to Shriram Finance and can get an instant personal loan without any hassle once you have fulfilled all the online criteria. 

Customer login feature 

It has a customer login feature which enables you to reach your account through the portal, check your account for any issues and resolve them. If you cannot resolve those issues, you can always ask for customer support because Shriram Finance has 24/7 customer support that is always active and resolves customer problems on the go. 

Lucrative interest rates 

The EMI repayment interest rates should be pretty low in case NBFCs to attract consumers take loans from them. Personal loan interest rates are comparatively low when pitched against credit card interest rates or the interest rates of other forms of loans. 

Shriram Finance personal loan solutions offer interest rates that start from 11.49%. They might be higher depending on the multiple application criteria that the prospective loanee has to fill out. However, the interest rate of 11.49% is quite competitive when compared to other NBFCs and banks offering personal loans.

Hence, opting for a personal loan from Shriram Finance is one of the best choices you could make, though it is always wise to compare the interest rates of multiple banks and NBFCs before zeroing in on one. 

Shriram Finance personal loan: Eligibility criteria 

The following eligibility criteria determine whether you are eligible to obtain the Shriram Finance personal loan. 

  • If you are an existing/old customer of Shriram Finance or any of its subsidiary entities (Shriram City union Finance), you are eligible to acquire the personal loan. 
  • Applicants of the Shriram Finance personal loan should be between 18 to 59 years of age during loan application. 
  • Applicants could be either salaried or self-employed. It hardly makes a difference. However, they should provide a declaration of their existing loan commitments. 
  • While a salaried professional should have a minimum of 1 year of work experience with the present employer, the self-employed individual should have a minimum of 2 years of work experience in his field. 
  • The applicant is required to provide their last 6 bank statements. None of those should have any history of cheque bounces. 
  • The prospective borrower should be dwelling in the same residence for at least the last 1 year.

Shriram Finance personal loan: Documents required to apply

Shriram Finance enables consumers to acquire a personal loan through a hassle-free, entirely-online documentation process. You don’t need to submit documents physically or be physically present at the office/branch of the NBFC. 

You simply need to publish the following documents online to get your personal loan approved. 

  1. A valid identity proof which could be anything from:
  • A voter’s identity card 
  • Passport 
  • Driving licence 
  • Aadhaar card 
  • PAN card. 
  1. An authentic residential proof, including:
  • A gas bill with gas book
  • Passport 
  • Driving licence 
  • NREGA card 
  1. Documents citing income proofs:
  • Post dated cheques (PDCs)
  • Last 3 months’ or last 6 months’ bank statements
  1. Legal documents as required by Shriram finance
  2. Any other document as required by Shriram Finance. 

Since Shriram Finance offers collateral-free loans, you would not be required to pledge any collateral. However, make inquiries before or during loan application. 

If your loan is sanctioned by Shriram Finance, you need to present the following documents post-sanction:

  • A duly signed loan agreement 
  • Standing Instructions (SI) request/ECS form along with security charges for the same. 
  • Registration proofs or qualification certificates for certain self-employed individuals including doctors, engineers, architects, MBA consultants, CA, CS, ICWA, etc. 

Shriram Finance’s personal loan: Benefits

There are a plethora of advantages to be gained when you choose Shriram Finance’s personal loan solutions. They are given below. 

  • Hassle-free processing 

Shriram Finance ensures the borrowers go through a hassle-free and seamless loan procedure that includes all steps from application to disbursal online. 

  • Instant loan disbursal 

You might be in need of a personal loan for medical or household emergencies and cannot wait for the lengthy loan disbursal processes of banks. Shriram Finance eliminates all such roadblocks to provide instant short-term loans that can fund your immediate financial requirement. 

  • Flexibility in the personal loan procedures 

You can choose from a variety of loan amounts that depend on your requirements and repayment capacity. The EMI repayment rate starts from 11.49% and can go up. The repayment tenure ranges from 12 to 36 months. 

  • A loan for everyone 

The Shriram Finance loan is available for everyone – both salaried and self-employed professionals. Business owners and corporate professionals can both avail of the loan. 

Shriram Finance personal loan: Verification process

The verification process for the Shriram Finance Personal loan consists of the following steps. 

  1. Download the application form for a personal loan from the website and submit it to the lender after duly filling and signing it.
  2. The representative of the lender – Shriram Finance, will contact you during working hours and collect the required documents. 
  3. The professionals at Shriram Finance will verify the documents received. 
  4. Once the verification is deemed successful, the lender will approve the personal loan application by the borrower.
  5. In the final step, the applicant has to sign the loan agreement, and the loan amount will be instantly disbursed to his account. 

Factors on which Shriram Finance personal loan interest rates depend

The personal loan repayment interest rates of Shriram Finance start from 11.49% per annum. The EMI repayment rates are highly competitive compared to other banks and NBFCs. However, the EMI repayment rates are not fixed because they depend on the applicant’s profile and are based on the following criteria – 

  • Applicant’s net monthly income 
  • Applicant’s credit score 
  • Applicant’s credit and repayment history 
  • Credit utilisation ratio
  • Running loans on which EMI repayments are being made. 

Shriram Finance personal loan EMI calculation example

If you successfully acquire a personal loan from Shriram Finance, you have to pay the NBFC a particular EMI repayment amount each month until the loan tenure ends and the entire loan has been repaid. To calculate the loan amount, which is usually done using the reducing balance method, you can go to the website or the app and open the online Personal Loan EMI calculator. 

In that calculator, if you input the loan amount, the tenure, and the rate of interest, you will receive the EMI repayment amounts that you have to submit each month to Shriram Finance officials. 

For example, you have taken an interest of INR 5 lakhs. The total tenure for repayment is 3 years and the rate of interest per annum is 11.49% per annum. 

In this case, the EMI to be paid is INR 16,486. 

The total EMI to be paid over the period is INR 93, 493 and hence you end up paying Shriram Finance INR 5,93,493 over a period of 5 years. 

Shriram Finance personal loan: Other associated charges

Once the EMI repayment interest rate is decided based on the applicant’s profile, the company will implement some additional charges. These are – 

  • Processing charges – It is calculated as 2.5% of the loan amount sanctioned + taxes 
  • Dishonour charges – INR 500 per instance. 

Check out: Read about IFSC code of Bank of Baroda 

FAQs

Are pensioners eligible for loans at Shriram Finance?

No, Shriram Finance does not provide loans to pensioners.

Can I access my loan account to get its status?

Yes, this feature is present with Shriram Finance personal loans. The loanee has a loan account where they can login and check their loan status. If they have any doubts, they should contact customer care online or via call to clear their doubts. This facility is also available to deposit account holders of Shriram Finance.

Can I get a loan from Shriram Finance if my credit score is low?

No, Shriram Finance typically does not disburse loans to applicants with low credit scores. To obtain a personal loan from Shriram Finance, you need to have a credit score of 700 or higher. If you want to obtain a personal loan, you can opt for a secured personal loan or loan against property.

Can I apply for a personal loan from Shriram Finance if I am nearing retirement?

Yes, of course, you can. However, the personal loan, if granted, should be repaid before your retirement or before you are 59 years of age.

Where can I get more information regarding personal loans and other forms of loans?

You can go to Shriram Finance’s official website to obtain all forms of information regarding personal loans and other forms of loans.

Source: https://ecis2016.org/.
Copyright belongs to: ecis2016.org

Debora Berti

Università degli Studi di Firenze, IT

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