A personal loan is an unsecured loan in which you don’t have to give any security. But some banks can ask for a guarantor or security. The terms and conditions varied as per lenders. The benefits are:
Minimum documents required.
Clearance is given within seven days of applying.
You can use the loan for any purpose whichever you like the most, there is no check on that.
Yes, it’s possible to apply together with a co-applicant. As it will increase your income eligibility and you can take a larger amount of loan.
The important factor the bank follows is your ability to repay the loan. However, it differs from bank to bank. Your residence profile and the place you work also considered by the bank. There are few conditions which need to be fulfilled:
Minimum monthly salary of Rs. 8,000
Minimum age of 21 years required
Maximum age of 60
Personal loans are specially meant for people who don’t want to give any securities. It’s a unsecured loan where no guarantee is required.
Repayment of a loan is done in reference of post-dated chequesfor the entire period of contract. EMI would bethe amount of the post-dated cheque. It is necessary to withdraw the complete loan for the borrower which is later on repaid in terms of fixed monthly installments.
It is not mandatory to provide a guarantor, but some lenders may ask for one.
There are usually two types of charges:
Processing charges: This is paid at the time of applying for loan varies from 2% - 3% of the loan amount.
The lending rate will be comprised of:
The loan amount as compared to income
Duration of the repayment period
Credit report is examined
In brief, your ability to repay the loan decides the lending rate. Lending rates vary for different financiers and current range from 9% to 28%.
The period of a personal loan is short. Many banks offers loan for maximum 3 years. There is an option of 5 years also.
It could happen at times that you are not able to pay your EMI on time. In that particular case, you should convert the personal loan from an unsecured loan against assets such as car, house, mutual funds and RBI bonds, Fixed deposits, gold, shares and debentures and life insurance policy by requesting the bank to reconstruct the loan. As per to ensure that the EMI amount is less as compare to before in order to make payments on time. The rate of interest charged on a secured loan is much less than on unsecured loan.
Following can apply for personal loan:
1. Self-employed professionals
2. Salaried individuals
3. Self-employed non-professionals
Based on the person’s current earnings, the amount of loan could be varied.
In India, the Nationalized, Foreign and Co-operative banks give personal loans.
In personal loans, the financier is not bothered about the purpose of taking a loan. You can use personal loans for buying anything like refrigerator, washing machine etc. as per your needs and requirements.