Personal loans are any purpose loans which are given without any collateral or guarantor. This is a very unique loan product wherein the borrower is at his/her discretion to do whatever they need. In other words, unlike a car loan or a housing loan, a personal loan can be used by the borrower for any of his/ her personal needs. There is no restriction for the usage of such loans though it should not be used for speculative purposes and investment in tax saving instruments. The loan can be repaid like all other loans through the equated monthly instalment -EMI (Use EMI Calculator) process where a fixed amount is paid each month.
Personal loans are currently offered from Rs 50,000 to Rs 50 Lakhs and are typically repaid in tenures ranging from 1 to 5 years.
Higher Loan Amount + Least Loan Tenure = Low Interest Amount
For Self-employed Individuals :
Personal Loans are offered by nationalized banks, private banks and a few Non Banking Finance Companies.
Personal Loans are unsecured loan which does not require any security or collateral. It also does not require any guarantor.
Any individual who has got a source of income as salary or business income can apply for a personal loan.
It is in the interest of the borrower to repay all the EMIs as per schedule. Delay in payment of EMIs or default would badly affect the credibility of the borrower. Moreover getting a loan at a later stage would be difficult. Genrally banks share the credit history of a borrower with credit bueareu and in turn they share data of credit history of a boroower with other banks.
Most banks allow its customers to prepay personal loans after 6 months of disbursement . Generally, banks charge a penalty as prepayment charges on the principal outstanding.
Yes, a few banks offer special rates for those who have a relationship with their bank. The relation ship could be a bank account, exisiting loan, a credit card etc.
Generally it takes 1 to 3 working days to sanction a personal loan after completion of all formalities in terms of compliance in documentation.
Rate of interest is a factor of prime lending rate (PLR) as announced by respective banks from time to time which varies with market conditions.
No, moratorium is not applicable for personal loans. Generally first EMI starts within 45 days of the disbursement of loan.
Personal loans are generally repaid by way of equated monthly instalments( EMI)
Yes, you have to pay processing charges as decided by the bank from time to time.
The tenor of personal loan ranges from 12 months to 60 months. However it should be noted that tenor is the discretion of the bank and also in most of the case, the tenor is restricted to 36 months.
Personal loans are available in the range of Rs. 50,000 to Rs. 50 lacs depending on the income eligibility of an applicant. However banks also have specially designed products to offer higher loans.
You can apply for a personal loan in order to fulfill any of your personal needs which requires financial assistance . The loan can be used for buying a plot, wedding expenses, hospitalization expenses, holiday packages, buying jewellery, higher education etc.
Personal loans does not require any collateral or security. Exceptionally in some cases, a Co-applicant is required if certain norms are not met by the applicant.
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