Deutsche Bank Personal Loan review

Deutsche Bank offers personal loans to salaried and self employed people. You can avail of a personal loan for purchasing household appliances, for the education of your children or a marriage in the family or any other reason.

Deutsche Bank does not ask for your income tax documents in some cases if you have an existing life insurance policy, a credit card, an overdraft account or an existing personal loan with some other bank you may be given a personal loan without being required to produce your income tax documents.

Amount of the loan

Deutsche Bank provides loans between Rs.50,000 and Rs.15,00,000. The term period of the loan can be between 12 months and 60 months.

Refinancing an existing personal loan

In times of falling interest rates, a personal loan from Deutsche Bank can be used to refinance a loan from some other bank that has been taken at a higher interest rate. When you opt for refinancing your personal loan, you may be able to transfer it to Deutsche Bank without having to provide your income documents. You can also ask for an additional loan when you're getting your personal loan refinanced.

Specially for existing customers

If you're an existing customer of Deutsche Bank you can opt for a personal loan from them without providing income tax documents.

Documents required for the Deutsche Bank Personal Loan

Some documents are required when you apply for a personal loan. If you're a salaried person you need to provide the latest salary slip and the bank statement for the last six months. Apart from this you need to provide a photo identity proof, a residence proof and an age proof document. A copy of a passport can meet all three requirements since it establishes your photo identity, residence and age. A voter's ID card can also meet all three requirements similarly.

If you don't have either of these documents then you can provide your driver's license and a copy of your PAN Card or Birth Certificate or copy of your life insurance policy. Alternatively phone bills and electricity bills can also be provided to establish your proof of residence.

Self employed professionals need to additionally provide Income Tax Returns (last 2 years), CA certified computation of income, or CA certified Profit & Loss Account and Balance Sheet for last 2 years.

Eligibility for a Deutsche Bank personal loan

You can opt for a personal loan if you're between 25 and 60 years of age. For self-employed professionals the maxmimum age limit is 65 years. Your minimum take home salary needs to be Rs.20,000 per month. In case of self employed professionals the annual income needs to be over Rs.2,40,000 per annum. Loans are currently available in Aurangabad, Bangalore, Chennai, Delhi, Gurgaon, Noida, Kolhapur, Kolkata and Mumbai.

Charges for the personal loan

Deutsche Bank charges a fee for processing the personal loan. This is similar to other banks like ICICI and HDFC. The processing fee is 3% of the loan amount while the annual interest rate is 24% per annum. Some banks have been a little strict lately about giving personal loans because of increasing defaults. Despite charging a higher interest rate banks have been finding it unviable to grant personal loans due to recovery hassles.

Personal loans usually come with a relatively higher interest rate compared to other loans like housing loans and education loans. This is one good reason not to treat them as long term loans. If you want to finance the purchase of a house or your child's education it would be ideal to check with your bank if they do have special loan schemes for these purposes. Such loans can be availed of at lower interest rates. If you need a loan for some immediate urgent use for a short period of time, a personal loan may be suitable for you. It's generally not a good idea to take a personal loan to invest in the stock market because you could lose all your money in theory and yet have the liability on you. Going on a shopping spree funded by a personal loan isn't such a great idea either Such a liability adds up as you have to pay the principal and the interest, both. Make sure you borrow only as much as you need and repay the amount in the time period to avoid being stuck with additional interest and penalties. Personal loans can be a very useful way of meeting short term requirements.

Deutsche Bank policy on recovery of dues and loan recovery agents

Deutsche Bank has a 'Model Policy on Collection of Dues and Repossession of Security' which outlines their recovery of dues process and promises that they would not use undue coercion or force for recovery of loans, will respect the privacy of their customers and several other policies which seem to be fair to their customers. Over the last couple of years there have been several cases specially involving ICICI where customers have been harassed for recovery of loans. There have been some deaths too in the recovery process. RBI has come down heavily on such banks. As a result banks like Deutsche Bank which continue to grant personal loans seem to have a more fair approach towards their customers. They have a special section on their web site which lists all their policies and terms and conditions clearly.