FAQ
Frequently Asked Questions
Everything you need to know about the product and billing.
What is a Personal Loan?
A personal Loan is an unsecured loan provided to an individual to meet his/her lifestyle requirements. This is also known as Any purpose Loan.
What is the purpose one can take a personal loan?
As it is a lifestyle loan, it can be used for almost any type of expense an individual can have ranging from big ticket appliance purchases to luxury vacations. This is the reason for which this loan is also called any purpose loan.
What are the prevailing rates for personal loans?
It is 9% to 12% right now, varies from bank to bank.
What is the minimum and maximum amount under a Personal Loan?
It varies from Bank to Bank. Normally the range is from BDT 50,000 to BDT 2,000,000.
What is the usual tenure of a personal loan?
Normally the tenure ranges from 12 months to 60 months but varies from bank to bank. However, in rare cases, shorter or longer loan tenures may be allowed by the borrower on a case-by-case basis.
How can I get a personal loan easily?
You log-in to FinCoachBD.com, select your respective branch and click apply. Our site will redirect you to the respective bank’s application form. Fill the form, attach the required documents and submit. The respective bank will contact with you vide your account with FinCoach and if everything is alright, your loan will be approved and you will be notified immediately.
What is the eligibility for a personal loan?
A regular stable source of income either by salary, or business or by professional self-employed. However, your life pattern, expenditure level, employment length, employer profile, etc. also affect the eligibility criteria.
What are the key documents required when applying for a personal loan?
It varies from bank to bank based on respective bank’s credit criteria. However, most common requirements are as follows:
- NID and/or other identity proof documents
- Recent photographs
- Salary certificate for salaried individual and Trade license and other business proof documents for self-employed/businessman
- Income proof (Pay Slip, bank statements, latest ITR, company financials for businessman, etc.)
- Other income proof such as rental deeds
- Address Proof Documents such as utility bill copy
- Two references (One from family and another from professional attachments)
How is the maximum loan amount decided?
It is decided considering the total income level as well as how much money one can save in each month after meeting all his obligations. The core factor is Debt Burden Ratio (DBR) which represent how much burden in percentage of his/her total income a person is obliged to bear in a month. For example, if a person earns BDT 100 per month and his all the installments including the proposed loan EMI is BDT 50, the person’s DBR is 50%. Usually setting the maximum loan amount for an individual, Bank take care that the DBR including the proposed loan EMI does not exceed 50% to 60%.
Can I apply for a personal loan jointly with my spouse?
Yes, you can apply either singly or jointly with your spouse or any family members. With a coborrower, your application will fall under higher income bracket ensuring higher loan eligibility. But at the same time if anyone of your credit history is weak, your loan eligibility will be affected adversely.
How to decide which bank/financial institution to take the loan from?
It’s very easy to decide using FinCoach platform. Because, FinCoach will provide you a pool of transparent, authentic data on different banks’ products features and you can easily compare them based on different criteria such as loan amount, interest rate, loan tenure, processing fees, other changes, etc. The easy access of information and simplified comparison will make your life easy to decide which bank you should choose.
How do banks decide the maximum personal loan amount that I can get?
It depends on your disposable income and how much EMI you will be able to serve seamlessly.
How do I get the lowest interest rates on personal loan?
Simply long into FinCoachBD.com and get an unbiased comparison on rate, fees & charges and apply through this platform.
Is there any extra charge payable when applying for personal loan?
No. FinCoach doesn’t charge you anything for processing this loan. It’s completely free of charges.
Are personal loan interest rates fixed or floating?
In general, it is fixed. However, the bank may add a clause in their sanction that the rate can be changed at any point of time with the sole discretion of the bank.
How is the personal loan disbursed?
Once the loan gets approved, you will be notified through FinCoach. Then you need to sign some basic documents provided by the bank. Once the documentations formalities are completed, you may either receive an account payee cheque/draft equal to the loan amount or get the money deposited automatically into your savings account electronically.
How long does it take for personal loan to be disbursed?
It varies from bank to bank but in general it takes one week to get the loan disbursed.
What is the difference between Part payment, Pre-payment and Pre-settlement? Are there any charges related to this?
Part Payment: A part-payment amount is less than the full loan principal amount and this payment is made before the loan amount becomes due.
Pre-Payment: This occurs when you pay off your personal loan in part before it becomes due as per the EMI schedule. The pre-payment amount may or may not be equal to the total due amount. Pre-payment charges usually range from 1% to 2% of outstanding loan amount but varies from bank to bank.
Pre-settlement: Pre-settlement refers to completely paying off a personal loan before the loan tenure has ended. Just like pre-payment charge, pre-settlement charges range from 1% to 2% of the loan amount, but varies from bank to bank.
What is Late payment fee/charges?
It’s the additional amount you need to pay to the bank if you fail to pay the EMI on the due date. Normally the bank charges 2% extra on the EMI amount for the number of days the EMI is being default.
