All You Need to Know about Personal Loan Agreement
Published on : June 10, 2021

All loans are backed by a written, signed and stamped agreement between the lender and the borrower and the personal loan is no exception. Since the personal loan is an unsecured loan, it is even more important for the lender to ensure that the paperwork is accurate and complete to avoid legal complications in future.

What information does the Personal Loan Agreement contain?

The Personal Loan Agreement sets out every relevant piece of information related to the loan.

  • The name and address of the lender and the borrower are clearly mentioned in the document.
  • The amount of loan is mentioned in numbers and words so that there is no ambiguity.
  • The tenure of the loan along with the start date and end date is included in the agreement for clarity and future reference
  • The interest rate that has been agreed upon is recorded in the loan agreement.
  • Any additional fees along with taxes charged for processing the loan application are mentioned too
  • The repayment option that has been selected by the borrower is mentioned in the loan agreement and the same is adhered to while calculating the EMI.
  • If you have opted for Loan insurance details for the same are clearly mentioned in the agreement 
  • The details regarding the prepayment penalty in case of foreclosure of the loan is set forth in the agreement so that there is no dispute in future.
  • The due date on which the borrower needs to make the EMI payment is clearly written in the agreement. No additional reminder is sent to the borrower. It is the duty of the borrower to stick to the date mentioned in the agreement.
  • The legal action that can be initiated in case of default is mentioned in the agreement so that the borrower is aware of the consequences.

It is prudent on the part of the borrower to read the agreement carefully and understand the terms and conditions before signing the same. It is best to have clarity so that you do not face any issues or inconvenience in the future. The intention is not to petrify you but to make you aware of the rules of the agreement that need to be complied with, to have a comfortable loan experience.

Now that you are clear about the contents of the personal loan agreement, let us understand the ease of entering into a personal loan agreement with LoanTap.

Taking a personal loan has become a breeze with online lenders. All you need to do is fill up an application on the website and upload the necessary documents. The eligibility conditions are so simple to fulfil. If you are an Indian citizen or resident with over Rs 30,000 as a monthly income, you automatically become eligible for a personal loan application. You can easily get a loan ranging from Rs 50,000- Rs 10,00,000 for a tenure between six months to three years. The interest rate starts from 18%p.a and goes upto 22% depending on the product you choose.

The documents required for the application are basic documents that are readily available like –

  • PAN card
  • Proof of residential address (Aadhaar card/ Driving Licence/Passport)
  • Salary slips of last three months
  • Bank statement of last six months of the Salary account

The LoanTap team peruses the application carefully and verifies the documents. If your credit score is good, your documents are in order, and you meet all the loan parameters, you have a fair chance to get a good offer on your loan. The loan amount will be disbursed once the loan approval is complete. The entire process takes about 24-36 hours.

There are a variety of repayment options to choose from like Step Up EMI, Interest Only EMI, term and Overdraft. You can choose your repayment tenure according to your capacity to service the EMI. Once you complete six months of EMIs, you can choose to prepay part or full loan without any charges or prepayment penalty.
Since you have complete knowledge of the personal loan agreement and the simple process involved, nothing should stop you from reaching out to LoanTap whenever you have a financial need for any purpose. Remember our website You can visit us whenever you have a need and we will be happy to assist you!