Personal loans are loans which are provided to individual’s without securing it against any collateral like a property, car etc. It is an unsecured loan.
Financers provide personal loans basis an individual’s credit history, salary/ income and the live loans.
Personal Loans are the best way to meet your expenses during an emergency or fund any unplanned situation in life. Whether you are planning your next dream vacation with your loved ones or want to get funds for our child’s education, a Personal Loan offers double benefits of quick access to funds and zero need for collateral.
The unsecured nature of this loan makes it vitally important for the lender to assess the credit history of the customer. CIBIL score is a tool which all financial institutions use for this purpose.
Most of the salaried persons, self-employed and professionals can apply for personal loans. With attractive interest rates, minimal documentation and speedy processing, we make this easy for you.
This would completely depend upon various factors i.e. Your disposable Income, Existing Loans for which you pay EMIs, CIBIL behavior and most importantly Lender`s own internal policies.
Most Financial Institutions allow borrowers to choose loan tenure between 2 years to 5 Years.
You can repay the loan in Equated Monthly Installments (EMIs) using the ECS facility or through post-dated cheques.
Though exact documents required vary from Financier to Financier, below is the list of common documents that usually require:
- Address & Identity Proof
- Income Proof i.e. Salary slips in case of salaried person, Financials in case of Self employed.
- Proof of Business (applicable only for self-employed individuals)
- Any other documents requested by the Financial Institution.
No, not required.
One should check on below key things while applying PL:
- Rate of Interest (ROI): The ROI charged for a personal loan can go from as low as 10% p.a. to as high as 24% p.a., based on the lender’s terms and conditions and your credit score. The interest rate makes a substantial difference to the cumulative cost of the loan.
- Repayment Flexibility: Make sure to check if the lender allows part-payments or pre-payments and if there is any penalty levied for making the payment.
- Processing Fee: Even if you are offered a low interest rate, a high processing fee could bump up the cost of your loan.
If you have a good credit score, the chances of you being offered the loan at a low interest rate are quite high. Your credit score indicates your creditworthiness and your repayment ability.