APL · Unsecured personal loan
Advanced Personal Loan
An instalment personal loan repaid in equal monthly payments, with interest charged on the reducing balance so the cost falls as the principal is repaid.
Terms
What this product is
- Structure
- Amortising loan. Equal monthly instalments on a reducing balance.
- Rate of interest
- 14% to 24% per annum on the reducing balance. The rate within that band is set by the borrower's credit profile and risk assessment.
- Processing fee
- 2% of the sanctioned amount, subject to a minimum of ₹199, plus 18% GST. Deducted before disbursal.
- Tenure
- 6 months to 3 years.
- Repayment
- Equal monthly instalments per the amortisation schedule printed in the Key Facts Statement.
- Purpose
- Personal and household requirements, declared as a term of the offer.
Who this suits
Individuals with a regular income who prefer to spread repayment across months rather than settle in a single payment.
Before you borrow
Read this part properly.
This is expensive credit
The annual percentage rate on this product is high. That is a consequence of a small amount, a short tenure and a one-off processing fee annualised across few days. The consequence is still real, and you should borrow only what you can repay on the date agreed. If you are borrowing to repay another loan, this product is very unlikely to improve your position.
You can walk away for 7 days
A cooling-off period of 7 days runs from disbursal on this product, because its tenure runs beyond 30 days. Within it you repay the amount sanctioned. No interest for the days you held the money, and no penalty. The processing fee and its GST were deducted before the money reached you and are not refunded. Exercising this right is not a default and is not reported as one.
The Reserve Bank requires only that a lender’s board fix this period and that it be no shorter than one day. Basel sets it at 3 days on a loan of 30 days or less and 7 days on a longer one.
Repaying early is never penalised
There is no foreclosure or prepayment charge at any time. After the cooling-off window, settling early costs the principal plus interest for the days you actually held the loan. Settling early can never cost more than running the loan to term.
If you miss a repayment
A penal charge of 0.15% per day applies to overdue principal only, shown to you as a rupee amount. Missed repayments are reported to credit information companies and will affect your credit record. How repayment may be pursued is set out in full in our Fair Practices Code, and any agent authorised to approach you is named in your Key Facts Statement.
Applies to this product
Standard terms
- Maximum contractual rate
- Not exceeding 50% per month. This is a ceiling on the rate of interest. It does not cap the APR, which also carries the processing fee and GST, and which is therefore disclosed as a figure in its own right.
- Goods and Services Tax
- 18% on fees and charges that attract it, as the law requires. GST is never charged on interest.
- Annual Percentage Rate
- All-inclusive and not compounded. It is the whole cost of the credit expressed as a fraction of the amount actually received, scaled to a year. Disclosed in the Key Facts Statement before the borrower accepts.
- Penal charge on overdue amounts
- 0.15% per day, applied to overdue principal only. The penal charge does not compound the interest and is always shown to the borrower as a rupee figure.
- Cooling-off period
- 3 days on a loan of 30 days or less, and 7 days on a longer loan, running from disbursal in each case. A borrower who exits within the window repays the amount sanctioned. No interest for the days held, and no penalty. The processing fee and its GST were deducted before disbursal and are not refunded. Exercising this right is not a default and is not reported as one. The Reserve Bank requires only that the period be fixed by the Board and be no shorter than one day; Basel sets both windows well above that floor.
- Foreclosure and prepayment
- No foreclosure charge, at any time. From day four a borrower settling early pays interest only for the days actually held; unearned interest is rebated. Settling early can never cost more than running the loan to term.
- Who computes the figures
- The server. The application never performs arithmetic on money and never treats a locally held figure as authoritative.