Lakshmi Vilas Bank Limited offers a personal loan scheme to meet one’s personal and domestic expenses, make fresh financial investments, make business investments, etc.
| Interest Rate | 11.4% p.a. |
| Loan Amount |
|
| Processing Fee |
0.25% of the loan amount
|
If you wish to get the Lakshmi Easy Loan, you will have to submit a list of documents that the bank requires. Given below are some of the documents that will be required:
Anyone who holds National Savings Certificates (NSCs), Kisan Vikas Patras (KVPs) or Life Insurance Corporation (LIC) policies can apply for the loan. Groups of people who hold these documents can also apply.
Lakshmi Vilas Bank asks loan applicants to pledge their NSC, KVP, or LIC policy in return for the requested loan amount. The amount can be returned on a monthly basis as per the EMI schedule provided. The EMI payable is calculated based on the interest rate, processing fee, and loan tenure. Take a look at the example given below to understand how personal loans work.
Mr. Rao had plans to start a business but was short of Rs.3 lakh in funds. Hence, he approached Lakshmi Vilas Bank for a personal loan. As he had an LIC policy that he could pledge, the bank approved the application for Rs.3 lakh loan at 11.4% interest p.a. The processing fee charged for the loan is 0.25% and the loan tenure was decided to be 1 year.
Given below are the details about the EMI payable for the next 12 months:
| Month (in Rs.) | Principal Paid(A) (in Rs.) | Interest Paid(B) (in Rs.) | Total Payment (A+B) (in Rs.) | Outstanding Loan Balance (in Rs.) |
| 1 | 23,721 | 2,850 | 26,571 | 2,76,279 |
| 2 | 23,946 | 2,625 | 26,571 | 2,52,334 |
| 3 | 24,173 | 2,397 | 26,570 | 2,28,160 |
| 4 | 24,403 | 2,168 | 26,571 | 2,03,757 |
| 5 | 24,635 | 1,936 | 26,571 | 1,79,123 |
| 6 | 24,869 | 1,702 | 26,571 | 1,54,254 |
| 7 | 25,105 | 1,465 | 26,570 | 1,29,149 |
| 8 | 25,344 | 1,227 | 26,571 | 1,03,805 |
| 9 | 25,584 | 986 | 26,570 | 78,221 |
| 10 | 25,827 | 743 | 26,570 | 52,393 |
| 11 | 26,073 | 498 | 26,571 | 26,320 |
| 12 | 26,320 | 250 | 26,570 | 0 |
To know the schedule for a different loan amount you wish to take, use our EMI calculator
| Parameters | Lakshmi Easy Loan | Corporation Bank Personal Loan | Karnataka Bank Personal Loan | Yes Bank Personal Loan |
| Interest rate | 11.4% p.a. | 12.9% p.a. onwards | 13.20% p.a. | 10.75% onwards |
| Processing fee | 0.25% | 1.5% of loan amount | Nominal | As per loan agreement |
| Maximum loan quantum | No limit | Rs.3.5 lakh | As mentioned in loan agreement | Rs.40 lakh |
| Maximum repayment tenure | 5 years | 60 months | Rs.5 lakh | 60 months |
You can repay the loan through equated monthly instalments (EMIs) as per the schedule given. In the example given above, the EMI payable was around Rs.26,570. Make sure you don’t miss any of the payments.
The bank may reject the application if the applicant’s credit score is low, the loan amount is too high for the tenure chosen, or the applicant does not have sufficient income.
Lakshmi Vilas Bank specifically needs loan applicants to pledge government securities to get a personal loan. So, you have to provide any of the mentioned government securities to get the loan amount.
The bank will decide the loan amount that can be sanctioned based on the government security being pledged. If the value of the security you hold is estimated at Rs.5 lakh, the application can be approved.
The personal loan interest rate is determined by the bank based on the Marginal Cost of fund-based Lending Rate (MCLR). The Lakshmi Easy Loan, for example, is 1.50% over the one-year MCLR fixed by the bank. The bank decides the MCLR based on the repo rate fixed by the RBI.
A GST rate of 18% will be applicable on banking services and products from 01 July, 2017.
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.
