Can I apply for a big Personal Loan or should I split it ?

POSTED BY anilkumar_fin ON March 6, 2014 7:33 pm COMMENTS (8)

My monthly income is ~80000INR. I have 2 years of work experience and from 3rd week of March I will be joining a new company. I do not have any credit card, loans etc. I was doing all cash based transactions. Now I wanted to apply for 8 Lac personal loan for some family affairs like marriage of my sister.

I ordered cibil report which has no information about my credit history. A personal loan adviser suggested not to go with such a big amount with one bank as I don’t have history, instead apply in 3 different banks for  3+3+2 at a time so it should have any negative impact from lenders point of view. Please suggest a better way to do it.

Thanks,

Anil

8 replies on this article “Can I apply for a big Personal Loan or should I split it ?”

  1. ashalanshu says:

    Dear Anil, Please apply for a big PL with the bank your salary account is maintained. Please do not take help of that loan advisor, who is asking to split PL as it ‘ll increase his commission against your 3 Loans.

    Please talk to your salary account branch manager directly. Once the loan is there, please try to repay it ASAP.

    Thanks

    Ashal

    1. anilkumar_fin says:

      Thnaks Ashal… I spoke to him now.. his version is he may get extra commissions but he is saying once loan is granted and if I apply with one lender, on my CIR report it shows highest cr sanctioned as 8L. Instead if I apply in 3 banks it shows max is 3L and lot of options to foreclose or later transfer under one bank.. please advise.

      1. ashalanshu says:

        Dear Anil, at the end of the day, final loan ‘ll be 8L Rs., so how does it matter that you are taking from 1 or multiple banks. As far as question of repaying early with smaller loans, you can repay in a single loan also. Why are you not talking to your salary bank?

        Thanks

        Ashal

        1. anilkumar_fin says:

          I would do that.. will talk to citi bank manager and let you know what he says.

          Thanks
          Anil

  2. Credexpert says:

    Dear Anil Kumar,

    Since you would need the funds in June-July, you almost have 3-4 months to establish your credit history.

    Instead of opting for a consumer loan or a credit card, which you do not need currently, you should go ahead and opt for a “secured” credit card. Since these credit cards are secured against “Fixed deposits”, you would possibly get one without any hindrance.

    A secured credit card works like other credit cards, except that in case of default, the bank would go ahead and liquidate the fixed deposit. Thus the bank has covered its risk before granting you the credit card.

    Use the secured credit card over the next 3-4 months and make timely repayments against it. Your credit history would be established by the time you opt for the personal loan.

    Regards,
    Credexpert
    http://www.credexpert.in

    1. anilkumar_fin says:

      Thanks.. out of curiosity I am asking does secured crcard and normal one makes any difference?

  3. Credexpert says:

    Dear Anil kumar,

    8 lacs is a huge amount! Personal loans are high interest loans and should be avoided unless the need is genuine.

    Since you have no credit history, the approval of your loan could be hindered. This is because the bank would ideally want some credit history to evaluate your past credit behaviour.

    Applying to 3 different banks might not be an answer since there is no guarantee that all the banks would approve your loan. You might have to establish your credit history by making timely repayments to one bank and then apply to the other banks.

    Regards,
    Credexpert
    http://www.credexpert.in

    1. anilkumar_fin says:

      Thanks Credexpert!!

      So if I take a consumer loan and cr card and use it for say 3-6 months and pay them regularly would that increase the chances? I need money in June – July time. Mine is Category A company.

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