What are The Personal Loan Usages?
Banks offer unsecured funding to Merchant Navy Employees for personal usage, such as:
Wedding Expenses or a Family Celebration
A wedding or a family function is a joyous occasion requiring budgeting for parties, new attire and gifts any shortfalls are stressful. A
Personal Loan is readily available to help cover any shortages and ensure celebrating happily.
Home Renovation
Making your home comfortable and functional for your family and a welcoming place to return to is a priority. Banks issue Personal Loans to buy new gadgets and refurbish and redecorate your home according to your taste.
Travel and Holiday Expenditures
Taking some time off to relax and go on a holiday has become necessary to rejuvenate and spend quality time with your loved ones. Costs can be restricting give your loved ones a memorable holiday with funding via a Personal Loan.
For Further Education or School Fees
A good education is a basis for a successful future parents aspire to send their children to the best institutions and provide updated facilities. Personal Loans are an easy way to secure funds for schooling or further education fees.
Medical Needs and Emergencies
An emergency or illness comes without asking at this time, getting the best care is a priority. Costs can be overwhelming, but having a stress-free life means making sure funds are available when needed. A
Personal Loan is ideal, as Banks process and disburse loan amounts within 72 hours.
What Are The Features of a Personal Loan for Seamen?
The Significant Features of a Personal Loan are as Follows:
Loan Amount
The Loan amount offered as a Personal Loan is a minimum of ₹1 lakh and the maximum Personal Loan amount issued per the Applicant's eligibility is ₹ 40 lakhs.
Tenure
The tenure or repayment term applied for the loan ranges from 12 months to 72 months, allotted according to the applicant’s capacity to repay the monthly instalment and the Lender's policy.
Unsecured Funds
Banks issue a Personal Loan without security no guarantees in the form of Gold or a mortgage are needed to secure a Personal Loan.
Quick and Streamlined Process
A Personal Loan process designed to work efficiently so the customer receives funds when required. The introduction of digital techniques has further decreased turnaround time; now, amounts reach the account in 72 hours.
What are The Eligibility Criteria For a Personal Loan For Merchant Navy?
Banks offering
Personal Loan for Merchant Navy Officers and employees tabulate the eligibility according to their unusual working conditions. The employment contract requires seafarers to sail on the high seas for more than six to eight months at a stretch, which gives them the status of an
NRI (Non-Resident Indian) therefore, the terms applied are not per the regular norms and checking the requirement before
Applying For a Personal Loan is essential.
Leading Banks That Process Personal Loan For Seafarers in India are
Individual bank terms may differ, but the basic policy for Merchant Navy Loan Requirements are similar. Note the following eligibility points to Apply Successfully For a Personal Loan.
Profile
Be Sure To Meet These Essential Profile Points
- The Applicant must be a citizen of India above 23 years of age.
- With an education of graduation or equivalent.
- Complete Work experience of 24 months or more.
- Stability of residence in India, whether owned or rented.
Co-Applicant
A Personal Loan aspirant employed in the Merchant Navy must provide a co-applicant. The co-applicant should be a blood relative or a spouse. Residence in a City where the Bank has a branch is preferable to facilitate verification and contact.
CIBIL Score and History
The CIBIL records will reflect all past credit usage and repayment history of an Applicant. Lenders evaluate an individual's
CIBIL Score before processing a loan request. Credit users must score 720 points above with an on-time repayment record. It is not mandatory to have a CIBIL record, but financers feel secure extending credit to a customer with a proven track record.
Income
The Applicant's salary must be above ₹ 1 lakh per month Banks take this income as an average over 12 months due to the Merchant Navy system of 8 months of sailing and four months of break time.
The electronic salary transfer to the Bank account must be reflected regularly, i.e., it must occur every month within a designated period. Salary credit for a continuous period of 6 months is required to apply.
Including other regular sources to increase the income is allowed if the loan amounts required are considerable and documentary proof is provided.
Bank Accounts
Applicants with companies registered in a foreign country receive remuneration in American $ or other foreign currency transferred to an NRI/NRO account. The Bank deducts the monthly instalment or EMI from this account.
The Applicant must have an alternate account in an Indian Bank, with the co-applicant as a joint account holder or the co-applicant as the primary account holder and the Applicant as a joint holder. The Bank will transfer the loan approved to this account.
Employment
Banks require proof of current work and a steady job to issue a Personal Loan. The employer's office should be in an Indian metro city for verification. The Applicant must submit an Employment letter and contract for the next voyage.
What are The Advantages of a Personal Loan?
Use as Required
There are no restrictions on using funds received as a Personal Loan. Once credited to the account, spend the amount as needed. However, it is prudent not to use the funds for invalid reasons like investments and gambling.
Accessible Documents
Lenders process a Personal Loan based on the customer's profile and documents, which are easily accessible. An Applicant can quickly secure a loan without security or guarantees, only the appropriate paperwork.
Repay Conveniently
The instrument for repaying a
Personal Loan is with EMI (equated monthly instalments) deducted from the customer's Bank account on a designated date. The customer's responsibility is to ensure enough funds in the Bank on the due date.
Flexible Tenure Options
The Tenure or the repayment term is applied, considering the customer's capacity to repay the instalment. If a higher instalment is affordable, the Applicant may request a shorter tenure or choose to repay conveniently over 60 months.
What are The Fees Associated with a Personal Loan?
The charges for a Personal Loan are standard for most Lenders; significant fees include:
Interest Rate
This is the cost of funds for the loan given and ranges from 11% to 18%. The Merchant Navy Loan Interest Rate for a Personal Loan is applicable to a monthly reducing balance. The Bank informs the Applicant of the disbursal of the interest rate and EMI payable for the Tenure.
Fees For Processing
The file charges for processing the loan request. Banks charge fees per the individual policy from 1% to 2 % of the loan amount. Discounts are offered to applicants issued a loan of ₹ 10 lakhs or more.
Charges Related To Foreclosure and Partial Payments
Banks permit the
Foreclosure of a Personal Loan after repayment of 12 EMI. Charges applicable are 3% to 5% on the amount prepaid for the Foreclosure or the part payment. 25% of the loan amount is allowed as a partial payment every quarter with charges as applicable.
Personal Loan Insurance Charges
The Client can avail of Personal Loan Insurance, which provides compensation for accidents, death and freedom from liability for repayment of the loan by family members.
Some also offer delayed payment cover of two to three EMI. Charges are ₹ 1000/- per lakh, which can be paid upfront or embedded in the EMI.
| Loan Provider |
HDFC BANK |
ICICI BANK |
KOTAK BANK |
BAJAJ FINSERV |
| Processing Fees |
11% - 15% |
11% - 15% |
11.30% - 16% |
11.30% - 16% |
| Processing Fees |
Nil to ₹ 10000/- |
Nil to ₹ 10000/- |
1% |
1% |
| Tenure |
12 to 60 months |
12 to 60 months |
12 to 60 months |
12 to 60 months |
| Foreclosure charges |
3% to 5% |
3% to 5% |
3% to 5% |
3% to 5% |
| For ₹ 10 lakhs+ after 12 EMI'S |
Nil |
Nil |
Nil |
Nil |
*Your Loan Advisors provide services completely FREE of cost.
Other Charges are Listed Below:
Other Charges incurred for a Personal Loan
| Loan Cancellation Charges |
Nil (However the processing charges will not be re-funded. Interest will be charged on the interim period of loan closure). |
| Cheque Bounce Charges |
Rs 550/- per cheque Bounce. |
| Charge For Late Payment |
2% per month from the date of unpaid EMI |
| Cheque Swapping Charges |
Rs 500/- |
| Cheque Swapping Charges |
Rs 200/- |
| Stamp Duty |
At actual as per applicable law |
| CIBIL Report Copy Charge |
Rs 50/- per copy. |
| Service Tax/Other Taxes |
At actually applicable presently or in the future. |
| Legal, Repossession & Incidental Charges |
At Actual. |
What is The Procedure For issuing a Personal Loan?
Most Banks endeavour to issue a
Personal Loan within 72 hours of receiving an application, for which there should be no roadblocks. Our advisors at
www.yourloanadvisors.com have a decade of experience guiding our customers in the hassle-free processing of their applications.
Understanding the process will help to expedite the process.
Check The Eligibility Criteria To Confirm Eligibility.
For Merchant Navy personnel, the essential criteria are the continuity of employment and a valid contract for the next voyage. If the Applicant has taken an extended break for any personal reason, the Company has to endorse that the re-employment offer stands.
Assimilate Required Documents
The documentation submitted must be valid and legible. Banks require specific documents to process a loan for Merchant Navy officers. Check the list to ensure availability if any is missing, the Bank will stall the processing.
Fill Out The Application Form With Care
All information given should be accurate, as the bank’s agencies will verify it. It must match the documentation details the request can be held up or rejected if any discrepancy occurs.
After Receiving The Application
The Bank allows a file number and communicates the same to the Applicant via SMS and email. The identification number is for all further communication and serves as an acknowledgement.
CIBIL is Requested
A request is sent to CIBIL to retrieve the score and history if the score meets the criteria, the Bank forwards the customer details for verification.
If the CIBIL shows a discrepancy, the applicant may seek clarification. If no credit is used, the process moves to the next step.
Physical Verification
The Lender initiates a Physical verification at the residence premises and conducts an employment verification, telephonically or physically.
The office staff must confirm the employment details and verify the documents submitted.
Positive Details
The file moves to the underwriting stage if all the checks conducted are positive. The banks officer the customer to verify all information given, checks all the inputs and calculates the eligibility for the loan amount the Bank can issue.
Decision
Finally, the Bank informs the customer regarding the decision and significant terms of the loan, which include:
- The Loan Amount That The Bank Approves.
- The interest Rate.
- The Processing Fees.
- The Tenure for Repayment.
And forwards an agreement to the Client for confirmation the Agreement contains details for the loan, such as:
- The monthly instalment the customer has to pay to repay the loan.
- The Bank presents the ECS on the 1st or 7th to ensure enough funds to clear the EMI.
- The Agreement includes other costs, including Foreclosure, part payment and charges for delayed EMI.
It is advisable to review the terms of the Agreement and seek clarifications if necessary. After the Client accepts the terms and signs the Agreement, the Bank electronically transfers the loan amount to the savings account where the co-applicant is also a joint holder.
The Lender presents the EMI to the account on a fixed date for the designated Tenure.
Documents Required For a Personal Loan for Seafarers in India
Income Documents
Three month's salary slip
Bank Statements for the last six months.
Copy of Continuous discharge certificate (CDC).
Previous & current Contract letter with the date of joining mentioned.
Passport copies with a valid visa.
KYC Documents
Pan Card Copy
Aadhaar Card Copy
Current Address Proof
Ownership Proof of residence (Electricity Bill, Water Bill, Copy of Registry)
2 passport-size photographs.
Documents For Co-Applicant
Bank Statement for six months of the joint account
KYC Documents
Pan Card
Aadhaar card/ Driving License/Passport Copy
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