If you are taking a personal loan then you must read this-TRP

If you need a personal loan in India to meet your financial needs, then this article will prove to be very useful for you to know about the details of personal loans in India.

If you are taking a personal loan then you must read this-TRP

There is a large section of the population in India who often feel financial constraints for building their own houses, for the higher education of children or, for expensive medical treatment. Therefore, now in our country too, personal loans are very popular these days to buy personal property (house, shop) or to meet your personal needs - medical treatment, higher education - related to extra money. If you too want to apply for a personal loan, then first find out the factors that you must have accurate information about.

However, getting a personal loan is an important decision for you for which every individual should consider various factors according to their financial needs. Before applying for PL, it is very important for a borrower to do a proper check on the banker who is providing the loan amount. These factors will help you understand the financial implications of your credit history.

What is Personal Loan (PL)?

A personal loan is one type of unsecured loan, for which you do not need to pledge any property or keep anything as collateral with the bank while taking the loan. The interest rate and repayment/payment period varies from bank to bank. Generally, people can use personal loans for personal needs like repairing their home, arranging money for marriage, foreign excursions, repayment of past debts, buying an item (refrigerator, AC, washing machine, car or two wheeler etc.) do to complete.

Therefore, before taking PL from any banker, it is advisable for you to check the terms and conditions given below.

Eligibility conditions for an individual to avail personal loan

Following are the basic eligibility criteria for availing personal loan in India:

  • Any salaried and non-salaried individual can apply for a personal loan.
  • Applicant's age should be at least 21 years and not more than 60 years (for salaried persons).
  • The upper age limit for self-employed individuals is 65 years in most of the banks.
  • Considering the monthly income, the applicant must have a minimum monthly income of Rs 25,000 to avail a personal loan.
  • Keep these points in mind for a personal loan

Following are the points that every individual should consider before applying for a Personal Loan (PL):

  • The maximum amount to be borrowed
  • The ability of any person to take loan depends on his monthly income. Generally, banks offer a minimum loan amount of Rs 50,000 to personal loan seekers.
  • Processing and Delivery Time

The processing time of a personal loan is much faster as compared to other loans where a lot of verification is involved. Personal loan does not require a huge documentation process. Only a few documents such as your address proof, identity proof and income proof are enough to apply for a personal loan.

Do a proper inquiry about pre-approved loans

In some cases, if the customer has a good credit history, banks also offer pre-approved personal loans for which the customer does not have to go through the loan approval process and the bank has already given its approval for this loan. and the entire personal loan amount will be transferred to the applicant's account without any documentation process within 48 hours.

Personal loan repayment terms and conditions

It is very important for every applicant to understand the repayment/payment process of Personal Loans in the form of monthly EMIs. Monthly EMI is deducted on a specified date and the customer can also choose to repay the borrowed amount before the end of the loan tenure. The loan amount of the personal loan can be repaid over a total of 12 months of the EMI payment plan, for which banks usually charge you a small fee as foreclosure charges.

Know more about the interest rate

The interest rate for a personal loan is slightly higher than other types of loans as this loan comes under the unsecured loan category. Usually, the interest rate (ROI) of personal loans ranges between 10.99% and 22% p.a.

Credit period

In case of a personal loan, the repayment tenure can be between 01 years to 05 years. Sometimes the borrower can choose the loan tenure as per his convenience.

*Disclaimer - This information is for the enhancement of your financial knowledge and financial understanding only. It should not be taken as financial advice by any person.