Personal Loan details, eligibility and benefits

What is a Personal Loan?

If you have an emergency situation and need money, then you can do your work by taking a personal loan. If you are in urgent need of money, then taking a personal loan and any other loans there is probably the best option instead of borrowing money from friends and relatives.

Personal Loans details

A personal loan is a personal loan taken from any bank or financial institution that offers various types of loans. There is no bondation to tell the bank how you will use your money. There is no specific reason for this type of loan, you can take this loan to fulfill any purpose of your personal life, this is not the case with any other type of loan.

Home Credit gives easy loans up to 2 lakhs to its customers. There are some documents needed to give you the loan amount. Not only this, there are many other benefits of personal loans given by banks.

Why choose Personal Loan?

Personal loans are different from conventional loans in many ways because you don’t have to give a reason to the loan provider due to which it is better and proves to be helpful in times of need. It completely depends on the core principles and personal loan does not require documents of non-working documents with other loans.

Personal loans are the best loan amongst any loan because of low interest rates, quick approvals and small EMIs. Personal loans have proved to be the most effective in times of need and personal loans are more popular than other loans. Let us know some more benefits of personal loans.

1) Use anywhere without any bondation

The best thing is this loan is you can use this loan amount any things you want without any bondation. You can use this loan however you want. This is one of the most special things about this loan. In this, you can take a loan for any of your personal reasons and it will not make any sense to the bank or finance company.

2) No need for any guarantee

Frequently an underwriter is expected to take a credit and something important is required which you store with the money organization as an assurance so tomorrow in the event that you can’t reimburse the credit because of any explanation, that finance organization will give you that thing.  auctions it and recovers its price.

If you want to take a personal loan from any company, then you can take a loan without keeping anything as a guarantee but some banks and companies need a guarantee.

3) Paperless Documentation

Except for personal loans, all loans involve a lot of paperwork. With home credit, you can do the documentation in one go on the online loan app. For this you need the following documents and some other documents if needed.

  •  ID proof
  •  Address proof
  •  income proof
  •  photograph

Apart from these four things, you do not need any other paper for loan approval.

 4) Low interest rate and convenience wise loan repayment tenure

Usually a personal loan is easily available, so many banks and finance companies charge it by increasing its interest rates but in personal loan on hdfc bank you have to pay a low interest rate due to which it is simple and you get maximum benefit from it.

5) Quick approval

Loan companies understand your needs so with bajaj finserv you can get a loan within a few days with minimal documentation. It can take time upto 2 to 5 days and the loan amount gets directly deposited into your account. Your EMI is also deducted from that bank account on a monthly basis or according to your chosen option.

Personal Loan Features and Benefits

  • Loan will be available without pledging anything
  •  40 lakhs Rs. Can get loan up to Rs., can increase even more but depends on the bank
  •  It can be used for any work
  •  Pay period will be up to 60 months, may extend
  •  minimum paperwork

Personal Loan: Interest Rates

 Personal loan interest rates may vary from one bank to another bank/loan institution. The interest rate at which the bank offers the loan depends on the applicant’s credit score, employment, income and factors like loan amount and repayment tenure.

Factors Affecting Personal Loan Interest Rates

Given below are the factors based on which the bank decides the personal loan interest rates:

your credit score

The credit score reflects the riskiness involved in giving a personal loan to an individual. So if you have a low credit score, the bank will also apply higher interest rates to the loan as a countermeasure to taking more risk.  Hence, it is always advisable to maintain a credit score of 750 or above.

your monthly income

Banks assume that the applicant whose income is high will be able to pay the loan on time.  Hence, people who have high income can get personal loans faster and at lower rates.

 where do you work

While deciding the personal loan interest rates, it is also considered where you work and what work you do. Individuals working in reputed institutions get loans relatively quickly because of the company reputation you get a big amount so easily. What do you want and at better interest rates? People doing government jobs also get better interest rates and personal loans because of their job security.

your relationship with the bank

If you have a good and old relationship with any bank and you have already paid the loan on time, then the bank can give you a loan on easy terms and low interest rates as compared to others. Existing customers of the bank can also get pre-approved loan offers.

Personal Loan Types

There are many types of personal loans, you can take a personal loan according to your need.

wedding loan

The cost of weddings in India is often very high and so you can’t spend all your savings on a wedding . Hence, you can take a wedding loan for marriage, which is a variant of the loan itself.

 Higher Education Loan

You can take this personal loan for yourself, your children or your spouse to study abroad and for foreign studies. You can use this loan for college fees, flight tickets, visa, living expenses and more.

 medical loan

If suddenly a medical emergency strikes and you or your family does not have medical insurance, you can take a personal loan for medical expenses.

Home Renovation Loan

People keep making changes in their homes for trending designs and there is no limit on the expenditure. You can take a personal loan for home renovation and improve your home.

travel loan

You can take a personal loan for vacations with your family or traveling abroad. You can also take this loan for traveling anywhere in your country or for a honeymoon or cruise.

 debt consolidation loan

If you are paying several small EMIs, you can take a Debt Consolidation Loan to pay off all those loans and then pay only one EMI of this personal loan.

Personal loan eligibility conditions

To avail a personal loan, you need to fulfill the following key conditions:

  •  Age: Applicant’s minimum age should be 18 years and maximum 60 years
  •  Credit score: 750 or higher
  •  Salary: The minimum salary of the salaried people is Rs 15000.  should be per month
  •  Stable Employment: Total work experience of 2 years out of which 1 year should be in same profession and self-employed persons should be in same profession for minimum 2 years
  •  Job Type: Persons working in reputed Institutions, MNCs, Private and Public Limited Companies, Government Institutions, PSUs

 *The eligibility conditions mentioned above are general for personal loan, these terms may change/extend depending on the bank/loan institution.

Role of credit score in taking personal loan

Since you do not pledge anything with the bank for a personal loan, the bank has a comparatively higher risk in giving a personal loan. To reduce their risk, banks prefer to offer personal loans to the same applicants. Maintain a credit score of 750 or above to increase your chances of getting your personal loan application approved

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