ESAF Small Finance Bank Personal Loan | Reasons for Rejection, Features, Purpose and Documents Required

ESAF Small Finance Bank Personal Loan: ESAF Small Finance Bank Limited is an Indian private bank. Its headquarters are located in Thrissur. On May 5, 2016, ESAF Small Finance Bank Limited was established. It contains a total of 557 branches.

Savings accounts, fixed deposits, recurring deposits, home loans, personal loans, car loans, education loans, gold loans, PPF accounts, lockers, net banking, mobile banking, RTGS, NEFT, IMPS, E-Wallet, Bima Yojana, Pradhan Mantri Awas Yojana, Pradhan Mantri Awas Yojana, Pradhan Mantri Awas Yojana, Pradhan Mantri Awas Yojana, Pradhan Mantri Awas Jyoti Jeevan A number of different plans, such as the Bima Yojana, are available.

This article will help you with ESAF bank personal loan contact number, ESAF bank personal loan apply online, ESAF property loan.

Want to compare ESAF Small Finance Bank Personal Loan with other bank personal loans for lowest interest rates and extra offerings? Just keep an eye on our Complete Guide on Personal Loan & choose the suitable bank to apply for the loan.

ESAF Small Finance Bank

Features of ESAF Small Finance Bank Personal Loan

  • The maximum loan amount
  • There are several debt repayment alternatives available.
  • Application for personal loans is easy and fast.
  • The loan was authorized quickly.
  • A guarantor is not required by the bank.
  • Interest rates that are appealing as well as competitive
  • Special programs and discounts are available to employees of large businesses.
  • A personal loan frequently does not necessitate the provision of collateral. programs and discounts
  • A personal loan often does not need the supply of security.

Personal Loan Documents Required by ESAF Bank

  • Photographs of a properly completed and signed personal loan application
  • Passports, voter identification cards, driver’s licenses, PAN cards, Aadhar cards, and government agency ID cards are all acceptable forms of identification.
  • Proof of income: most recent pay stub with all deductions or Form 16 with most recent pay stub (for salaried individuals)
  • Income tax returns from the preceding two years are required as evidence of earnings (for other than salaried individuals)
  • Proof of address might be in the form of a bank account statement, a recent electricity bill, a recent mobile/telephone bill, or a recent credit card statement. A lease agreement for an existing home
  • Bank statement over the previous six months

ESAF Small Finance Bank Personal Loan Repayment

  • Personal loans are allowed to be paid for a time period of about 60 months. It all starts with 12 EMIs. The duration of the payback period is also determined by your credit score.
  • You can pay back the loan in one of the following ways:
  • Create a standing instruction at your bank.
  • You can utilize the ECS (Electronic Clearing House) Automated Payment (Electronic Clearing Service) Internet Banking solution. Your bank may have a mobile banking app that you can use.

What is the Procedure for Applying for a Personal Loan with ESAF Small Finance Bank?

  • Apply Online: You may apply online at the Bank website by entering your personal and professional information and providing the needed documents. You can apply after you’ve double-checked your loan eligibility.
  • Offline Application: Bring all essential documents to any Bank branch, fill out the form, and begin the loan approval process.

The Reasons for Personal Loan Application Rejection

A bad credit rating

Basically, a credit score tells you how creditworthy an individual is. A good credit score is based on your ability to repay a loan without defaulting. For a lender to determine the risk of default, a credit score is critical. Lenders turn down many personal loan applications due to weak credit scores. Someone with a credit score under 750 may have trouble getting a personal loan.

Existing debt is larger

Someone may be refused a loan if they have taken a lot of loans and your loan-to-net-income ratio is more than 40%.

Increased Loan Inquiries

An inquiry is when a lender requests your credit report from the credit bureaus when you apply for credit. Such inquiries are classified as hard inquiries by the credit bureau, and they will appear on your credit report. Regardless of whether it is free, you should not make too many inquiries. Your credit score could suffer if you make too many inquiries.

Takeaways from this Article

Question 1.
What might a personal loan from the ESAF bank be used for?

Answer:

  • Personal loans are available from ESAF Bank for a range of purposes, including the purchase of smartphones and computers, the installation of modular kitchens, and the purchase of scooters.
  • The terms of each loan govern the usage of funds. PCs, laptops, air conditioners, scooters, motorcycles, TVs, VCRs, DVD players, washing machines, refrigerators, generators, cooking appliances, DTH equipment, dish antennae, vacuum cleaners, CD players, geysers, water filters, and other durable consumer goods can all be purchased with a Consumer Loan from ESAF Bank.
  • Prepayment of a personal loan is always accompanied by a penalty.
  • Prepayment of a Personal Loan does not necessarily result in a penalty. It is up to the lenders to impose any prepayment penalties. It has been observed that many lenders do not impose any prepayment penalties.
  • The Best Personal Loan with the Lowest Interest Rate
  • It is not true that the best Personal Loan is the one with the lowest interest rate. There are many other significant factors to consider when choosing the best lender for a personal loan. Processing fees, qualifying amounts, loan payback terms, service difficulties, and other loan terms are examples of these components.
  • In addition to the lowest interest rate, you must examine all of these factors.
  • An increase in the interest rate raises the EMIs on a personal loan.
  • Loans with a fixed rate of interest would be unaffected by an increase in interest rates. If you don’t want your EMIs to rise, you may also extend the term on a variable rate loan.
  • Your personal loan application will be denied if you do not have a steady source of income.
  • If you do not have a consistent source of income, your personal loan application may be approved, and you will be able to acquire a personal loan. You can gain loan approval if you add a joint holder with a stable income, or you can borrow from peer-to-peer lenders.
  • A personal loan should be repaid over a longer period of time.
  • It is preferable to repay a personal loan over a longer period of time.
  • A widespread fallacy is that a longer personal loan repayment period is desirable since the borrower would have to pay lower EMIs, which he or she will be able to afford, but this is not true. Longer repayment durations imply higher interest rates. For quite some time, you will be obliged to pay interest.
  • You won’t be able to receive a personal loan if you have a low credit score.
  • The approval of a house loan is also influenced by other criteria such as the borrower’s age, income, and so on.
  • You can acquire a loan from a range of cooperative banks and non-bank financial firms if major banks refuse to lend to persons with negative credit (NBFCs).
  • To meet a range of financial needs, such as a trip overseas, a house relocation, a family wedding, credit card bill payment, current loan repayment, medical emergency, and so on, without having to worry about losing any assets or property.

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