Personal loans help the
person in a situation, when person required immediate money. Personal loan is
an unsecured loan. Unsecured loan means person needs to give any collateral or
security to the bank. In unsecured loan person can get a loan at the highest
interest rates. This is because of the risks involved for the lender. Person
can take personal loan in the range of Rs 10000 to Rs 20 Lakhs. Getting a
personal loan online becomes easier for the person. Person can easily get the
loan once the eligibility criteria and documents have completed. After the
verification of your documents, person can get a loan in less than 6 working
days.
In India, many lenders
or financial institutions becomes the leading company for a personal loan.
Banks provide personal
loan at the lowest interest rates. Banks charge two types of interest rates
either floating rates or fixed rates. Floating rates means interest rates vary
according to the market fluctuations. Fixed rates mean interest rates are fixed
throughout the tenure period. Fixed rates are best as compare to the floating
rates. In floating rates risk factor is high because if any time market rates
increases your interest rate will also increase.
Knowing more about
personal loans in India
Person must do a
detailed research, before applying for a personal loan. It helps the person to
choose the best lender among all lenders. Person can also compare all lenders
and their interest
rates. Person can also read their terms and conditions and testimonials
which are written by existing customers. Person has to repay the loan in
installments which is known as EMIs. Banks provide loans with repayment
durations of 12 to 60 months. Banks also charge a processing fee on your
application. It can be 1% to 3% of your amount of loan.
The interest rate
varies from 14.5% to 22% depending on the eligibility criteria. Several lenders
charge a prepayment penalty of 3% to 4% on your outstanding principal amount.
Eligibility Criteria
for getting Personal Loans:
Person has to meet the
eligibility criteria before applying for a personal loan. An eligibility criterion
varies from bank to bank.
Credit score
Repayment capabilities
Age Proof
Income Proof
Job status - whether a
person is salaried person or self employed
