KNOWLEDGE HUB

Frequently Asked Questions

Everything you need to know about processing timelines, rates, documents, and qualifications.

Personal Loan FAQ Home Loan FAQ Car Loan FAQ Business Loan FAQ Working Capital FAQ Loan Against Property FAQ Project Funding FAQ Gold Loan FAQ

Personal Loan Questions

How fast can I get a personal loan disbursed?

Once the document packet is complete and verified, bank approvals typically take 24 to 48 hours. Payouts are made directly to your savings bank account shortly after signing the loan agreement.

Can I close my personal loan early?

Yes, most banks allow prepayment or foreclosure after 12 successful EMIs. Some banks charge foreclosure penalties (2% to 4% of outstanding balance), while others offer zero-charge terms. We will ensure you select a bank with flexible prepayment terms.

Does applying for a personal loan affect my CIBIL score?

When you apply directly to multiple lenders, each bank performs a hard inquiry on your report, which can lower your score. By consulting with MLG Finedge, we compare rates and perform only a single targeted submission, preserving your credit standing.

Home Loan Questions

What is the maximum Loan-to-Value (LTV) ratio allowed?

Under RBI guidelines, banks can finance up to 90% of the property value for loans up to ₹30 Lakhs. For loans between ₹30 Lakhs and ₹75 Lakhs, the LTV is capped at 80%. For high-value loans above ₹75 Lakhs, the maximum LTV is 75%.

What is the difference between RLLR and MCLR?

RLLR (Repo Linked Lending Rate) is linked directly to the RBI's repo rate, meaning interest adjustments happen immediately when the central bank changes rates. MCLR (Marginal Cost of Funds based Lending Rate) is determined internally by banks and adjusts only at specific intervals (usually once a year).

Can I get a home loan for a property on a Gram Panchayat patta?

Yes, but nationalized banks typically avoid Gram Panchayat properties. In these cases, we route your file through specific NBFCs and private housing finance institutions that accept Gram Panchayat titles with a valid structural map approval.

Car Loan Questions

Can I get a used car loan for a vehicle that is 8 years old?

Most banks limit used car financing to vehicles that are less than 5 to 7 years old at the time of loan application, and specify that the vehicle's age plus the loan tenure should not exceed 10 years.

Is a guarantor required for a car loan?

Generally, a guarantor is not required if the applicant satisfies the bank's income and credit score criteria. A co-applicant or guarantor may be requested if your score is low or income thresholds are borderline.

How is used car valuation calculated?

Banks send an independent surveyor to inspect the vehicle's condition, manufacture year, mileage, and registry history. The loan amount is capped at 80% to 90% of the value determined by the surveyor.

Business Loan Questions

What is the maximum loan amount available without collateral?

Unsecured business loans are generally capped at ₹50 Lakhs to ₹75 Lakhs by private sector banks. If your enterprise requires higher funding limits, we can explore secured Loan Against Property or Project Funding structures.

Can I get a business loan for a new startup?

Standard unsecured business loans require at least 2 to 3 years of operations with active tax filings. For brand new startups, we can assist in exploring government-supported programs like CGTMSE or Mudra Loans through nationalized banking partners.

Are interest rates for business loans fixed or floating?

Most unsecured business loans are processed on a fixed interest rate schedule. This allows you to plan your monthly budget accurately with predictable EMI outlays over the entire tenure.

Working Capital Questions

What is the difference between CC (Cash Credit) and OD (Overdraft)?

Cash Credit is generally granted against the hypothecation of business stock and debtors (receivables). Overdraft is a limit granted against a secured asset, such as a property mortgage or fixed deposits.

How is the drawing power (DP) calculated for CC?

Drawing Power is calculated monthly based on your paid stock and debtors list, minus your creditors. Banks require you to submit monthly stock statements to determine how much of your approved CC limit you can draw.

Can we get an unsecured overdraft limit?

Yes, select private banks offer unsecured overdraft limits (up to ₹30 Lakhs to ₹50 Lakhs) for premium business profiles with strong, audited turnover history.

Loan Against Property Questions

Can I get a loan against agricultural land in Jaipur?

Standard Loans Against Property are granted only against commercial, residential, or industrial converted properties. For agricultural land, we assist in routing files through dedicated agricultural credit schemes.

What is the maximum LTV allowed for LAP?

Lenders can finance up to 60% to 70% of the market value for residential properties, and up to 50% to 60% for commercial properties, subject to technical valuation reports.

Can I continue using my property while mortgaged?

Yes, you retain full operational ownership and usage of the property. The bank only holds the original registry papers as security, which are returned upon complete loan closure.

Project Funding Questions

What is RERA registration, and is it mandatory?

RERA (Real Estate Regulatory Authority) registration is mandatory under Indian law for all residential and commercial real estate projects where the total land area exceeds 500 square meters or the number of apartments exceeds eight. Banks require a valid RERA registration before releasing construction finance limits.

What is the debt-to-equity ratio expected by banks?

Lenders generally expect a debt-to-equity ratio of 2:1 or 1.5:1. This means the promoter or developer should contribute at least 30% to 40% of the total project cost as equity margin before banking debt is released.

Do you assist with Letter of Credit (LC) and Bank Guarantees (BG)?

Yes, we structure both fund-based limits (term loans, working capital) and non-fund-based limits (Letter of Credit, Bank Guarantees) to support equipment purchasing, tender bidding, and supplier payments.

Gold Loan Questions

What happens during the gold appraisal process?

An authorized bank valuer weighs and tests the purity of your gold ornaments (excluding any stone weight) in your presence. The loan limit is determined based on the purity and current market price of the gold.

Can I pay off my gold loan early without charges?

Yes, bank-backed gold loans generally allow early repayment or foreclosure without any prepayment charges, allowing you to redeem your jewelry as soon as funds are available.

What happens if I delay my payments?

Banks provide grace periods and send notifications if payments are delayed. If a borrower defaults continuously over long periods, the bank may auction the gold to recover the outstanding balance under RBI guidelines.

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