- Bank Type: Individual Lender
- Loan Amount: any
Personal Loan is an unsecured loan for personal use which doesn t require any security or collateral and can be availed for any purpose, be it a wedding expenditure, a holiday or purchasing consumer durables, the personal loan is very handy & caters to all your needs. The amount of loan can be ranged from Rs. 50,000 Rs. 30 lakh & the tenure for repaying the loan varies from 1 to 5 years. Benefits of Personal loan: A Loan without security: A Personal Loan is not a secured loan (bank doesn t ask for any security or collateral) as against a Secured Loan where one is required to pledge a house or other security to acquire a loan.Simple Documentation: A Personal Loan can be accessed with minimal paperwork or documentation & doesn t take much time to procure as against a Secured Loan.No specification about the end use of the loan amount: You are not required to disclose the end use of the money borrowed, Banks are concerned about the fact that whether the borrower is able to pay back the loan with interest before the due date or not and they confirm this by checking the income, employment or business & other factors of the borrower.Big Loan amount: Personal Loan is a means to fulfill bigger loan requirement, you can take a loan ranging from Rs. 50,000 to Rs. 30 lakh.Basis to Compare Personal LoansCompare Interest Rates: Personal Loan can be compared primarily on the basis of interest rates which vary across banks depending on your profile which is further linked to your occupation, salary/income, credit history etc. The personal loan interest rate ranges from 15% to 25%, you must go for that loan which is offering you at the minimum rate.Other Charges: You should also check on the other charges like processing fee, pre-payment penalties and documentation fee because they increase the overall loan cost and vary widely across banks.Evaluation of various Loan offers: You should first calculate the entire loan cost across banks which constitutes the rate of interest & banks other charges. Evaluate offers keeping the tenure of the loan constant & compare the rate of interest, EMIs & other charges. This process will help you get the Best Loan deal.EMIs: EMI is the Monthly Equated Installment which constitutes the principal amount and the interest on the principal equally divided across each month in the loan tenure. Use our EMI Calculator to compare EMIs across banks.Tenure: Tenure is the time frame for the personal loan payments to be paid back to the bank; it ranges from 1 year to 5 years. Eligibility Check: Before taking a personal loan you must know the eligibility criterias offered by various banks on the basis of which they offer loans and also compare personal loan banks. Checking the eligibility parameters will help you find the best loan deal. Check out your eligibility by various banks. Turnaround time: It becomes one of the most important factors in evaluation of your loan application when you are in a dire need of money. Turnaround time is the time which banks take in processing your loan application; you must check this parameter which varies from bank to bank. Documents required in Personal Loan: The documentation process in personal loan is very fast as against secured loans. Following documents are required by financial institutions to process the loan application: Identity proof3 to 6 months Bank statementsResidence proofSalary slipGuarantors & their same set of documents
