AU Bank Personal Loan – 10 Lakh Personal Loan With Minimum Documents

AU Bank Personal Loan

AU Bank offers a straightforward and accessible personal loan solution for individuals seeking financial assistance. With a maximum loan amount of 10 lakh INR and minimal documentation requirements, AU Bank personal loan is designed to meet the diverse needs of borrowers. Here’s an in-depth look at the features, eligibility criteria, and associated fees and charges of this personal loan.

Loan Amount and Tenure

Maximum Loan Amount: AU Bank offers personal loans up to 10 lakh INR. This substantial amount can help cover various expenses, whether it’s for medical emergencies, education, home renovation, travel, or any other personal need.

Tenure: Borrowers can choose a loan tenure ranging from 12 to 60 months. This flexibility allows you to select a repayment period that best suits your financial situation and repayment capacity. Longer tenures mean smaller monthly installments, whereas shorter tenures result in higher monthly installments but lower overall interest paid.

No Collateral Required

One of the key features of AU Bank personal loan is that it is unsecured. This means you do not need to provide any collateral or security to avail the loan. This feature makes it accessible to a wider range of individuals who might not have assets to pledge.

Eligibility Criteria

To qualify for a personal loan from AU Bank, you need to meet the following criteria:

1. Indian Residency: The applicant must be a resident of India. This ensures that the loan is available to those who live and work within the country.
2. Age: Applicants should be between the ages of 23 and 60 years. This age range ensures that borrowers are in their working years and have a stable source of income to repay the loan.

Also Read… Get 30 Lakh Personal Loan from SBM

Fees and Charges

When applying for a personal loan, it is essential to understand the various fees and charges that may apply. AU Bank personal loan comes with the following:

1. Processing Fee: The bank charges a processing fee of up to 4% of the loan amount. This fee is typically deducted from the loan disbursal amount, so it’s important to factor this into your loan calculations. The processing fee covers the administrative costs incurred by the bank during the loan approval and disbursal process.
2. Overdue Interest: In case of late payments, an overdue interest charge of 3% per month is applicable. This is a penalty for missing or delaying the payment of your monthly installments and is calculated on the overdue amount. It is crucial to ensure timely payments to avoid these additional charges.

Applying for the Loan

The application process for AU Bank personal loan is designed to be quick and hassle-free, with minimal documentation requirements. Typically, you will need to provide proof of identity, proof of address, and proof of income. The bank may also require additional documents depending on individual circumstances.

– Visit AU Small Finance Bank Personal Loan Section –

Proof of Identity: Acceptable documents include Aadhaar Card, PAN Card, Passport, Voter ID, or Driving License.

Proof of Address: This can be your Aadhaar Card, Passport, Utility Bills (electricity, water, gas), Ration Card, or a Rent Agreement.

Proof of Income: Salaried individuals may need to submit their latest salary slips, bank statements showing salary credits, and Form 16. Self-employed individuals might need to provide income tax returns, bank statements, and proof of business existence.

Advantages of AU Bank Personal Loan

1. High Loan Amount: With a maximum limit of 10 lakh INR, you can fund significant expenses without the need to take multiple loans.
2. Flexible Tenure: The choice between 12 to 60 months allows for customized repayment plans that align with your financial comfort.
3. No Collateral: Being an unsecured loan, there’s no requirement to pledge assets, making the process simpler and quicker.
4. Simple Eligibility Criteria: The basic eligibility requirements ensure that a broad segment of the population can access these funds.
5. Transparent Fees: Knowing the processing fee and overdue interest upfront helps in better financial planning and avoiding surprises later.

Considerations

While AU Bank personal loan offers numerous benefits, it is crucial to consider a few factors before applying:

1. Interest Rates: Compare the interest rates offered by AU Bank with those from other financial institutions. While the fees and charges are clearly outlined, the interest rate on the loan itself is a significant factor in determining overall cost.
2. Repayment Capacity: Assess your monthly income and expenses to ensure that you can comfortably manage the monthly installments without straining your finances.
3. Purpose of the Loan: Clearly define the purpose of taking the loan. Whether it is for a planned expense like a wedding or an emergency, having clarity on the need helps in better utilization of the funds.

Conclusion

AU Bank personal loan product, offering up to 10 lakh INR with minimal documentation, is an excellent financial tool for those needing quick and substantial funds. Its features, including no collateral requirement, flexible tenure options, and straightforward eligibility criteria, make it a convenient choice for many borrowers.