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Personal loans have numerous benefits, and one of them is the no-cost EMI option. People who want to take a personal loan and still want to save some money can avail themselves of a no-cost EMI option. Many banks and NBFCs provide no-cost EMI options. Therefore, customers should look for products that have the no-cost EMI option and then purchase them.

An individual takes a personal loan from a financial organization to fulfill their requirements. People fulfilling the criteria of personal loans like employment record income and their repayment ability, etc., can apply for a personal loan. The personal loan amount that is sanctioned relies on a few factors. The CIBIL credit score, credit history, interest rate, repayment period, and capacity of the guarantor (if any) are some of them. A debt consolidation loan, emergency loan, travel loan, marriage loan are all types of personal loans borrowed from any financial institution by the debtor.

No cost EMI means that no cost will be charged on EMI on top of the payment of the product that a person purchases. No extra interest on the principal amount makes no-cost EMI one of the most demanded options nowadays. As per the Reserve Bank of India circular, creditors were not authorized to market consumer loans and EMI with zero interest rates. As a  result, zero-cost EMI turned into a discount on product cost equivalent to the interest charge upon the product. When people purchase an article and choose a no-cost EMI, the total monthly installments to be paid are deducted from the product’s price. 

At no cost EMI, the full cost of the product is to be spent, and mostly the monthly installments are reasonable. Almost for every expensive product a person purchases, the option of no-cost EMI is available. When the buyer realizes that the price of an article is too high for him to pay, he can take a no-cost EMI option. 

When a person chooses a personal loan with no cost EMI the interest rates are still there but gets camouflaged and passed onto the customer in processing fees. And after the circular of RBI, the zero percent interest concept has become non-existent. Now, these schemes are used by financial institutions to allure and exploit vulnerable customers.

The schemes have now become a marketing gimmick, and some way or the other, customers are bound to bear the interest cost on the loan amount. And one way used to camouflage this cost is online shopping platforms where discounts are provided only when people pay the amount to the bank or financial institution. Another conventional method is to add the interest cost to the price of the product itself. 

The lending institution generally charges GST on the interest amount, continuing as per the existing rates. But sometimes, banks pass on the interest to be charged as an upfront discount at the time of purchase of any product that provides the benefit of a no-cost EMI. But as previously said, this is just a mirage.

A Personal Loan Interest Calculator makes it easy to figure out the equated monthly installment on the loan a borrower has taken. The monthly installments a person needs to pay against a loan are crucial in deciding the loan amount and repayment period. To properly plan the loan, the prior calculation of the payout one needs to do every month is essential. If a person wishes to lower their monthly installment, they can reduce the loan amount or increase the repayment period. 

To calculate the EMI against the personal loan, one can enter the principal amount of the loan; the interest rate agreed upon by the parties, the loan repayment tenure, and the monthly installment that one needs to pay to get instantly displayed. HDFC Personal Loan Customer Care or any other Bank or Financial Institution can help potential customers know their monthly installments before they apply for the loan. Maintaining a solid credit score and negotiating with the loan provider for a lower interest rate can also help a person get an economical loan.

Read More:- Guide For A Personal Loan 

A Gold loan is one of the easiest loans to apply as compared to the other loans. The eligibility criteria of a gold loan is simple as compared to the other unsecured loans. Anyone can apply for a gold loan subject to certain conditions.

What are the necessary things required to obtain a Gold loan?

The eligibility criteria of a gold loan or any other loan describes all the necessary things that are required to apply for a gold loan. Also, the eligibility criteria of a gold loan is really simple as compared to the other loans. The best part about a gold loan is that anyone can apply for a gold loan, any person who has some gold jewellery or gold coins is eligible to take a gold loan. Most of the people know a bit about the credit of a gold loan, its eligibility criteria, documents required, etc. The eligibility criteria of a gold loan is really simple so that any person who possesses some gold coins or some gold jewellery can apply for a gold loan and is eligible for a gold loan. As a borrower, you do not need to give any income proof documents like the salary slips or the bank statements. Also, eligibility criteria for a gold loan varies from bank to bank.  The EMI can be calculated with the help of a Gold loan EMI calculator. Following are some of the basic guidelines of a person who can apply for a gold loan from any bank or any other financial institution:-

1. Age of the applicant:
   Any citizen of India who is above the age of 18 years and below the age of 70 years can apply for a gold loan. He is eligible for a gold jewellery mortgage. However, most of the banks also demand a co-borrower if the age of the applicant is above 70 years.
   
   
2. Profession of the applicant:
   Most of the banks and the financial institutions in India offer gold loans or jewellery mortgages to the salaried employees, self-employed professionals and the businessmen. It also includes the farmers and traders.
   
   
3. Accepted quality of the gold:
   For the eligibility of the gold loan or the jewellery loan, a borrower can deposit the gold in any form like jewellery, some coins or as ornaments.

• Purity of the gold- The minimum purity of the gold that is deposited must be between 18 karats to a maximum of 22 karats or 24 karats. The minted gold coins are only accepted if they are 24 karats and a maximum weight of 50 grams. The approved amount of finance is determined mainly by the weight and the current market value of the gold that is deposited.

Documents That are required for a Gold loan:

The following are the documents that are required for a gold loan are: -

• Identity proof- Pan card, Adhaar card, Passport, Voter ID.
• Address proof- Driving license, electricity bill, passport, rent agreement, gas bill, etc.
• Additional items- two passport size photographs

  Some of the banks also ask for the income proof documents: -

• Salary slips ( of the last three months)
• Bank statements ( of the last three months)
• Form 16 of the last financial year
  
  

What is a Gold loan?

A Gold loan is a loan that is offered by the banks or the non-banking financial institutions to the customers who are in need of a loan. By availing a gold loan, a person can make use of the gold that has been lying in his locker for ages. Now, you can not only look good by wearing gold but can also make smart use of it with the help of a gold loan. You do not have to sell your gold to get some money. Here, in a gold loan, you just need to provide that gold to the bank or to the money lender as a security or collateral and after the successful repayment of the loan, you will get your gold back in no time.

 Why should you apply for a Gold loan?

• It is really easy to apply for a gold loan. A person can also apply online for a gold loan.
• The eligibility criteria is really simple in a gold loan.
• There is minimal documentation in a gold loan.
• SBI Gold loan provides minimal documentation.
• Your gold will be in safe hands.
• You can also get a discount if you provide extra collateral.

Also Read:- GOLD LOAN FROM BANKS OR NBFCs? 

Your loan application might have been rejected for a variety of reasons. Some may be familiar to you, while others may be unfamiliar, as some applications are refused entirely at the bank's discretion, despite the applicant meeting all primary eligibility criteria.

Multiple Loan Applications and Enquiries :

When you apply for a personal loan, the bank obtains a copy of your credit report from the Credit Bureau and evaluates your credit score. These are classified as hard inquiries by the credit agency, and they will appear on your credit report. As a result, frequent loan applications can have a negative influence on your credit score. Instead of applying for credit many times, do your study and analyse your possibilities ahead of time to prevent this issue. Then, apply for the only loan you want after considering and observing all of your possibilities.

Credit History Error :

Your credit score can also assist banks in determining your risk of default. The probability of default is used to describe the greatest and minimum percentage of default in a credit score. The percentage represents the likelihood of you defaulting on a loan. If there is an error on your credit report, it is always a good idea to file a dispute with your credit bureau and have it rectified as soon as possible. A credit report error might affect your credit score and lead to the rejection of your loan application.

Higher Existing Debts :

If your current debts are too large, your loan application may be denied. Your huge debts put you in danger in the eyes of the lender, which could lead to your loan being denied. Paying off your present debts and then asking for a new personal loan is the easiest method to avoid this predicament.

Several borrowers may purposefully reduce their present debt repayments to obtain a more significant loan amount. This, however, will easily backfire on them because lenders will look at their credit reports before granting a loan amount, which will inevitably include all of their current debt obligations. As a result, misrepresentation like this can lead to your application being rejected.

Incorrect Documentation :

Personal loans are often favourable during urgent cash needs, mainly when quick processing time is a decisive factor, even though they are supplied at relatively high interest rates and should be regarded as one of the final possibilities for obtaining credit.So, before submitting your immediate personal loan application, double-check the facts you supply. Your loan application will be rejected immediately if the lender discovers any inconsistencies in your information. Customers can contact Axis Bank's Personal loan customer care on the toll-free customer service line for any information or to express any issue or concern they may have about the bank's personal loans or any other general enquiry.

Criteria for annual income have not been met :

In general, most lenders have a minimum income criterion, and if you apply for a personal loan amount that exceeds your eligibility, your loan application is likely to be rejected. It would be beneficial if you spoke with your lender before filling out the application form to avoid this situation. You could also look for Non-Banking Financial Companies that do not prioritise your annual income.

Unstable Employment History :

Various banks offer personal loans to those who have a long history of employment. If you don't have steady work or have a history of quitting jobs frequently, your loan application is likely to be declined. Most banks prefer customers with a steady job or business and a consistent income. Lenders perceive people who change employment frequently to be less deserving of loan approvals, and the offered personal loan interest rates are higher for those people.

Must read:- Advantages of having a low-interest Personal Loan 

When there is the urgency of funds or any purpose, a personal loan can assist every competent person in using it handily. A personal loan is now available online on websites of different Banks and NBFCs, and there are even instant personal loan apps that help in the quick dismissal of personal loans. These websites provide potential customers with all necessary information regarding personal loans and even the comparative rates of different personal loans. The fundamental criteria to be eligible for a personal loan are the applicant's age between 23 to 58 years, net salary or income of at least Rs 30000, minimum of two years of experience in a job or any profession, and residence proof where the applicant is residing for at least a year or more. According to the borrower’s convenience, both the personal loan and loan against credit card have their advantages and limitations; according to the borrower’s convenience, one can be chosen.

On the other hand, credit card loans are handy and can be used physically in Store or online. If a person increases his credit card purchases and cannot pay off the dues on time, it can cost him an extremely high-interest rate on the remaining unpaid amount. It can further get accumulated and push the borrower into a debt trap. The credit card companies do not compel the borrower to pay off the balance all at once. Paying the minimum amount due or 'MAD' mentioned on the credit card statement is enough. Moreover, the credit card can be used until the remaining balance on it gets exhausted.

Both Personal Loans and Credit Card have their benefits and drawbacks. Eligibility criteria for most personal loans are not that rigid in comparison to credit cards. The purpose of debt consolidation with the low rate of interest personal loans serves the best. Personal loans can be borrowed online or offline, and the amount of a personal loan can get disbursed within half an hour once document verification is done. There are several drawbacks of personal loans too. Interest rates of personal loans range from 13% to 36% and have additional processing fees, which is on the higher side when compared to credit cards. HDFC Bank Personal Loan interest rate and some other banks providing personal loans are comparatively lower. Thereby it helps the customers to get a pocket-friendly personal loan. The credit score of the borrower must be high to get a personal loan approved. Even the documentation process in the personal loan plays a pivotal role, but that does not happen in the case of a credit card.

Credit card applications can be done anytime, and no additional documentation is required for it.  If a person has a good credit rating, it is enough to make him eligible for a credit card loan. Credit cards also furnish options to transfer balance at times at zero per cent interest. The repayment period also ranges anywhere between 12 to 21 months which is the best for debt consolidation. There is no requirement of physical presence in a bank for application and approval of a credit card related loan. Still, there are some drawbacks of the credit card which must be taken into account. The interest rates of credit cards can be higher depending on the credit cards' APR. Even some credit cards also attract annual fees, late fees and over the time limit fees. Moreover, the essential criteria for a credit card loan with low interest rates are a CIBIL credit score of 700 or more. 

A personal loan is a better option for salaried individuals and self-employed people with a continuous cash flow. Whereas, credit card loan is considered to be a revolving debt. So the ultimate winner depends upon the requirements of the borrower and his financial stability. It is always recommended for people to get loans with low rates of interest. So, according to the borrower’s convenience, he can choose a cheap personal loan or a cheap credit card loan.

Must Read:- Alternatives For Repaying Personal Loan For Defaulters 

One of the benefits of a personal loan is how quickly it can be processed. The loan does not necessitate a lot of paperwork. In most circumstances, the applicant must provide proof of address, identification, and income. Personal loans are loans that we take for any purpose because they do not require any collateral or security, and they can be arranged with very little paperwork. It must, however, be repaid in monthly installments, just like most loans EMI Calculator for a personal loan helps calculate EMI for each month with the interest rate. Though it is easier for the borrower to understand how to make payments. 

Benefits :

Quick Approval :

Personal loans are quickly granted. A personal loan takes much less time to process than a home loan, which can take up to three weeks to complete. As a result, they're your best option for swiftly receiving cash or completing a payment. Furthermore, if you have a solid credit history (CIBIL score of 750+), lenders will be more likely to approve your loan application.

There is no requirement for collateral :

Personal loans are the most common type of lending. A personal loan does not require you to put up an asset as security. This is one of the very most important reasons for customers to take out personal loans. However, keep in mind that the lender will charge a higher interest rate because the loan is unsecured. The interest rate on these loans often ranges between 14 per cent and 16 per cent. Nevertheless, if the repayment terms, EMI, and interest rate are acceptable to you, a personal loan is a viable option.

Flexibility :

The lender will not inquire as to why the loan is being taken out. Furthermore, the loan won't have to be used for a particular purpose (for example, a home loan can be used only for real estate purchases). Thus, it is an exciting financing option for borrowers for various objectives due to its adaptability.

Credit card repayments :

Most lenders have their own EMI Calculator, which allows you to assess the loan's repayment plan before taking out a loan. Simple: we enter the amount we want to borrow, the interest rate, and the loan duration, and the system calculates your EMIs and gives you an overall picture of how much you'll have to pay each month.

Relation between credit score and personal loan : 

If you have a negative credit score, banks may reject your application. Even missing a single payment might hurt your credit score. As a result, it's critical to pay back your loan in full and on time. If a borrower is unable to return the entire loan amount, their credit score will suffer. And you'll have a mark on your credit report for at least six years if you don't pay. Credit bureaus keep track of everything linked to your loan, credit, and obligations. If you're taking many loans at the same time or have taken a personal loan twice in succession, this could signal that you're credit hungry, which could make future lenders wary of you and harm your loan approval. As a result, it's critical to conduct a rigorous study and double-check anything that will impact your future loans. This loan, on the other hand, can be used to improve your credit score. You must pay all of your loan installments on schedule. And as a result of this, you will notice a significant improvement in your credit score as your payments history improves. If you have a low credit score, you can use this personal loan to improve your credit score. ICICI bank personal loan provides a  personal loan  with a very attractive rate of interest rate.

Read More:- Which is a better gold loan or a personal loan? 

Two main loan options are popular to get funds in times of need. Both loan options have their own advantages and disadvantages. So it's important to compare all the options we have and then choose our ideal loan option.

 The two loan options that we'll compare are: 

1. Personal Loan.
   
   
2. Loan Against Property.

Let's learn more about these options in detail :-

Personal LoanIt is an unsecured loan that can be availed at any bank or NBFCs across the nation. Customers have the complete flexibility to use the funds they get through personal loans freely. Banks don't monitor the end usage of the fund. 

So they can use the funds gotten from a personal loan for various purposes like: 

1. Wedding.
   
   
2. Vacation.
   
   
3. Child's Education Fee.
   
   
4. Debt Consolidation.
   
   
5. Down Payment.
   
   
6. Miscellaneous Expenses.

Borrowers have to repay the loan amount they have borrowed along with the interest rate. Missing even a single instalment can affect your credit score. So it's advisable to choose the repayment tenure and structure by comparing all the options available in the market. 

There are a lot of advantages that the customer can avail of by applying for a personal loan. 

We have mentioned some of the common advantages below: 

1. Hassle-free processing :- The entire process of personal loans is very quick, simple and hassle-free. You can easily get your personal loan application process within 2 to 7 business days. A lot of banks will approve your application quickly if you are someone who has a high credit score. You can even check your status using HDFC personal loan application status.
   
   
2. Unsecured :- Personal loan is an unsecured loan. So you don't have to pledge any asset as collateral or security. You can easily get funds through this loan even if you don't pledge any assets.
   
   
3. Flexibility :- banks have given customers the flexibility to use the funds they've got through personal loans freely. So they can use the funds for multiple purposes at the same time. However, the main rule of a personal loan business is that you can't use the funds for any illegal activities.
   
   
4. Credit Score :- You can use this personal loan as an opportunity to increase your credit score. To do this, you'll have to repay the instalments and EMI on time. And by doing this, you will notice a change in your credit score. So, a personal loan is an ideal option to increase your credit score.
   
   
5. Documentation :- The documentation process of the personal loan is very quick and simple. You'll have to complete the application form and attach some basic KYC documents and get it approved.

Loan Against Property (LAP)A loan against property is a loan option that can be used to get a high loan amount. For this loan option, you'll have to pledge your asset/property to get funds. The property you've pledged will be calculated at the market rate, and the actual market rate will determine the loan amount you'll get. 

Borrowers have to repay the amount they've borrowed from LAP along with the interest rate. In case the borrower can't repay the loan amount, and then the bank has every right to seize the property and sell it at an auction to recover the loan amount. 

Advantages of LAP

1. Interest Rate :- A loan against property is a secured loan, so the interest rate that the bank will charge is very low. The interest rate is usually between 12% to 22%. However, the interest rate charged will vary from one bank to another.
   
   
2. Availability :- You can easily apply for this loan option through any bank, financial institution or NBFC (Non-Banking Financial Companies) across the nation. So you get the flexibility to compare your options and then choose your ideal bank.
   
   

Repayment Tenure:- The repayment tenure for this loan option is up to 20 years. So if you're looking to get a high loan amount and repay it after some years. Then LAP is an ideal loan option.

Must Read:- PERSONAL LOAN - A SAVIOUR IN TIMES OF EMERGENCIES 

Learning from the mistakes of others can help you in personal loan moves up quickly in your life. We have put together some like personal loans of the common mistakes that are committed while applying for a personal loan. By knowing all of them or any other loan you can get the best personal loan.

1)  Not checking your credit score 

Checking credit score is very important for a personal loan because the lenders initially check your score to evaluate your creditworthiness related to a personal loan. If you do not have a good credit score or ratings there are chances of rejection or high-interest rates in a loan. You can improve your credit score and avail yourself of personal loans at a good rate.

2) Applying for too many personal loans

This is a misstep when you want funds or any other loan for your immediate needs. In a desperate situation for money, you might tend to apply for a personal loan from too many lenders. When the lender processes your application, a hard inquiry is made which will reflect on your credit report. If too many hard inquiries are made in a personal loan, it could hurt your credit score. Moreover, the lenders would assume you are credit hungry and hesitate to grant you the credit related to a personal loan.

3) Settling for less

Many tend to take a personal loan based on your personal loan or referral or instant approval. Though it is not a bad idea to consider, you might lose out on the best offers when you fail to shop around. Instant approval personal loans might have a higher interest rate where you would have got it at cheaper prices from another lender. Though it may take more time, it could lower your debt burden considerably.

4) Not reading the fine print

The lenders might assure you of a speedy approval and a high loan amount during your application. Don’t fall prey to such promises. Go through the terms and conditions carefully for a personal loan from TATA Capital Personal Loan and be informed about the charges levied upfront. If the terms are not favorable to your repayment capacity, make the right choice in choosing the best loan.

5) Opting for a longer tenure

In order to pay smaller EMIs, you might want to opt for a longer tenure. Smaller loans or any other loan periods help you save more on interest outgo and overall debt burden.

6) Taking a loan without any purpose

A personal loan is advisable to take when you have real financial needs. Taking it for recreational purposes like throwing a party to your friends, going on a vacation, etc. will become a burden later.

7) Not checking eligibility criteria

Different lenders have different eligibility for Personal Loan criteria such as income, age, employment, good credit score, residential location and, etc. Applying for a personal loan or any other loan after checking your eligibility criteria could help you improve your eligibility and get better personal loans.

Conclusion-

Do not ignore alternative loan options, such as secured loan options including top-up home loans, loan against securities, loan against property, and loan against FDs. 

Just like personal loans or any other loan these loans also do not have any end-usage restrictions in a loan and usually come with lower interest rates and longer tenure options than personal loans. For instance, existing home loan borrowers can opt for top-up home loans available at interest rates usually as low as 8% p.a. and tenure which may go up to 30 years or it depends on your personal loan depending on the residual home loan tenure. Similarly, those who have sizable long-term investments can consider availing loans against securities in order to meet their financial shortfalls at lower interest rates without selling their securities.

Read More:- During and after mistakes of personal loan 

A personal loan is among the most popular types of loans in India. Many people tend toward banks and non-banking financing companies for availing of personal loans in times of emergencies. One can get personal loans hassle-free at any financing company.

A personal loan is considered to be a multi-purpose loan. It can be used as per the convenience of the applicant for various purposes like marriage, education, business, travel, startup, and many other. Many people consider personal loans for marriage purposes. In marriage, various expenses can be easily fulfilled by taking a personal loan. There are various advantages of getting a personal loan for marriage purposes. It has benefited millions of people In India including rural and urban areas in financially difficult times by Personal Loan Apply Online as it is an easy process. One can find all the details regarding Personal loans online.

The advantages of a personal loan for marriage purposes are listed below:-

The loan amount availed can be utilized for several purposes:

This is the most significant benefit of obtaining a personal loan. As all know Indian weddings are quite long with hundreds of guests. There are several expenses during the wedding. Personal loans can be a great financial help during a wedding. Personal loans can be used as per the financial need without any restrictions from the bank. So many people prefer taking personal loans for marriage purposes as it can help in financing the entire marriage ceremony. The expenses during a marriage ceremony may include venue, lighting, photography, decoration, catering, jewelry, cosmetics, wedding dress, and many others. One can easily fulfill all the needs during the wedding just by taking a personal loan from any bank or non-banking financing company (NBFCs). All the requirements can be fulfilled by applying for a personal loan during the marriage.

Approval of the loan:

Personal loans can be easily approved without much hassle. One needs to provide proper documentation for fast approval of the personal loan. The documents verification is done within 48 hours of the application. After the verification of the documents, the personal loan is approved. Comparatively personal loans are approved faster if the borrower has a good profile which includes a good credit score and overall report.

Loan disbursal:

For marriage purposes the fund's requirements are immediate. The loan disbursal of a personal loan is quite fast and convenient for the borrower. After the successful verification of the documents, the loan is sanctioned into the borrower’s account within 48 hours. The amount is easily sanctioned into the savings account of the borrower. It is ideal for marriage purposes because the loan is sanctioned easily without much hassle.

No Collateral Needed:

A personal loan is easy to apply for and it doesn't require security against the loan. It comes in the category of unsecured loans. Being an unsecured loan it can be availed easily if proper documentation is provided. An applicant need not worry about the collateral for applying for a personal loan. It is best for emergency needs like marriage as it can be availed without any collateral.

Easy Repayment:

The repayment structure of a personal loan is quite simple. One can easily repay the personal loan in monthly installments to the banks and non-banking financing companies(NBFCs). The monthly installments of the personal loan include the principal amount and the interest rate. One can choose the preferred EMI plan from a wide range of options. This is a significant benefit of obtaining a personal loan. It can be repaid easily by the preferred EMI plan by the borrower. It is always recommended for the borrowers to choose the EMI plan according to the cash flow. 

Conclusion

A personal loan is considered ideal for wedding purposes. Personal loans can be applied from various banks and non-banking financing companies. Bank of Baroda Personal Loan can be applied easily. The bank offers amazing schemes on personal loans. The bank is recommended for getting a personal loan. There are minimal charges which include the interest rate and other fees are charged by the bank, which makes it simple to apply for a personal loan.


Read More:- Various Schemes In Personal Loan 

The pandemic has affected our economy badly. It is one of the most deadly pandemics after the Great Influenza pandemic of 1918-1919. It was the worst natural disaster in US history, with an estimated 675,000 deaths. And during these challenging times, the only hope that people have is loans. 

What is a Personal Loan? 

It is an unsecured loan that is used by individuals to get instant fund assistance. You don't have to pledge any asset as collateral to get funds from this loan. Many banks and NBFCs (Non-Banking Financial Companies) provide the facility of personal loans. Personal loans have relatively low interest rates than other types of borrowing. There are a lot of benefits that you can get from applying for a personal loan. 

Some of the common benefits are: 

1) Hassle-free processing:- The entire personal loan process is speedy and hassle-free. The process will only take 2 to 5 days to get processed. A lot of banks will approve your application quickly if you have a high credit score. 

2) Unsecured:- Personal loan is an unsecured loan. So you don't have to pledge any assets to get funds from this loan. 

3) Flexibility:- Customers have the flexibility to use the funds they get through this loan freely. Banks don't monitor the end usage of the fund. So you can use the funds for various purposes. 

4) Credit Score:- If you're someone who has a bad credit score, then you can use this loan as an opportunity to increase your credit score by paying the instalments on time. 

5) Documentation:- The entire documentation process of a personal loan is very quick and easy. You'll have to attach the application form along with some essential KYC documents required for verification. Unlike any other loan, you don't have to submit a bundle of paperwork to get your loan approved. 

Essential factors of Personal Loan

1) Credit Scores:- It is a three-digit number that will determine your creditworthiness. A lot of banks will use your credit score as a primary criterion to accept your application process. A high credit score can help you to get a lot of benefits. Your credit score will be a factor to build trust between you and your lender. 

2) Employment:- Personal loans only accept the application of employed individuals. So you'll have to be employed in order to get your loan approved. Your employment status will play a significant role in determining your loan approval. A work experience of a minimum of one year in your profession is required. 

3) Income:- A minimum income of INR 10,000 is required to get your loan approved. Your income will also plays a vital role in determining your application approval. If you're applying for a high loan amount, then you should have an income capacity to repay the loan amount. So be sure to check your income before making a decision regarding the loan amount. You can use some online tools like the HDFC personal loan calculator.

The personal loan application process

1) Firstly you'll have to apply for a personal loan facility. You can use either online instant personal loans or offline methods.

2) You'll have to fill the entire application form. Complete all the necessary details required by the bank. 

3) Then you'll have to submit some essential KYC documents along with some documents like: 

a) Address proof - Banks will ask you for address proof like Electricity Bill, Telephone Bill, Postpaid Bills, etc.

b) Income proof - Payslip, Form 16, ITR, Tax Challan, etc.

c) Employment status - You'll have to show a confirmation of your employment. For that, you'll have to submit an Employer Certificate, Offer Letter, Certificate of Experience, etc.

d) Identity proof - An identity proof like Aadhar Card, Pan Card, Passport or Driving License.

4) After you've submitted all the documents, the bank will verify your documents to check whether or not the application should be approved. 

5) Once the bank approves your application, the loan amount will be instantly disbursed to the borrower's bank account. 

This entire process of personal loan will take 2 to 5 business days. A lot of banks provide the facility of personal loans. To compare all the options and then choose an ideal bank for a personal loan. 

Also Read:- HOW TO CHECK THE CREDIBILITY OF A LENDER BEFORE AVAILING A PERSONAL LOAN 

While availing of any kind of home, we always see the time duration needed should be the minimum from the main connected amenities. For example, there are different types of financial services. We are also the time duration matters a lot as within 1 second a particular thing gets destroyed, or a particular thing gets created.

In some cases, it can be stated that it is equivalent to money, and in some cases, it can be said that it is equivalent to money or even more valuable than money. If somebody has an asset, there will be some time to make it into a liquid form to be availed from the same. One of the most key considerations of a personal loan is that it is that type of Financial service which is known for its flexibility and fastness.

Precise application :

In the case of a personal loan, there is no requirement of any kind of collateral security as in the case of the car loan or Gold loans or other types of loans. Implementing the online mode of application or the personal loan application online has reduced the time consumption to a much greater extent than it used to be earlier. Nowadays, the application is done within 5 to 10 minutes where all the necessary details and information regarding the personal and professional are needed. All this information will be made available by the bank to their officials, who will be examining the profile within a very short period because there is no involvement of any kind of pen and paper. The time consumption while doing rechecking is reduced to a lot of extents.

Processing fees :

As we know, India has a very perfect competitive market in case of financial services like that provided by Financial institutions. So the increase in the number of financial institutions has to test competition among the existing and the new competitors in the market. Each service provider wants customers who always to see their benefit whenever they select a personal loan provider and choose accordingly. For example, PNB Bank personal loans have search facilities for customers. This is the reason due to which each service provider is wanting their business to boom up so that as much as customers can be given the services and that can happen by reducing the rate of interest of the processing fees. So there is a presence of cutthroat competition among the service providers and the view that the candidates might be getting some benefit of rebate on reducing the processing fees.

Rate of interest personal loan application online:

Due to the perfect competition among the different service providers has resulted in the reduction of the cost of borrowing on a personal loan. There is a view that if a person is is I went with a low rate of interest then he will be able to repay the loan in a very well mannered and that is why from the side of the applicants also before availing any personal loan there is need of proper comparison to be done sing that which company is providing a good rate of interest and which is providing badly. Whether the reduced rate of interest a person will have to pay less in the form of EMI or the interest which will eventually decrease the loan tenure time. A person will need more time to pay a huge loan amount than the timing required for the list and period.

No restriction :

There are no restrictions on the supervision as it does not require to be incurred in the particular type of expense. . Personal loan is the type of loan amount of which can be used to meet the requirements of the different expenses for any type of loan and just saves time from getting confused in different types of loans.

Read More:- Things to consider before applying for a personal loan in India 

There are numerous people who are using personal Loans to cover higher bills. Personal Loans have been increasingly popular because they are unsecured loans that do not require collateral and have a short processing time. A Personal Loan can be obtained from any bank or non-banking financial institution of your choice.

• ADVANTAGES
  Personal loans are unsecured loans by financial organizations depending on employment history, repayment capacity, income level, profession, and credit history. Personal loans, sometimes known as consumer loans, are multi-purpose loans that can cover a variety of requirements. Unlike other sorts of loans, such as a home loan or a gold loan, which require more papers, Personal Loans only require a few, and the approval procedure is rapid.
  
  Personal Loan online services are available from various financial institutions, and the loan amount is disbursed within a few hours if the lender is confident in your ability to repay the loan. In addition, with the development of financial institutions online services, you can have your money in less than 48 hours. Another essential element of a personal loan is that the lender allows you to determine the length of your loan. Personal loans usually have a term of one to five years. As a result, you can choose your loan length based on your payback ability. You should take out a shorter loan to save money on interest and pay off the balance sooner.
  
  
• Adaptability
  Some loan kinds can only be utilized for a specific purpose. For example, when you take out a car loan, you can only spend the money to buy a car. On the other hand, personal loans are used for several things, including debt consolidation and payment of medical bills. If you are required to make a significant purchase but don't want to be limited in how you use the money, a personal loan might be a good alternative. Before applying for a loan, double-check the approved uses with your lender. The yearly instalment, interest charged on the loan amount, and loan tenure may all be calculated using the  Personal Loan Interest Calculator.

• Quick Approval
  
  Personal loans are approved quickly. A personal loan takes far less time to process than a home loan, which can take 3-4 weeks. As a result, they're your most excellent chance for getting cash or making a payment quickly. In addition, lenders will not have a problem approving your loan application if your credit history is good (CIBIL score of 750+). There is no requirement for collateral. Personal loans are the most common type of lending. A personal loan does not require you to put up an asset as security. This is one of the very most important reasons for customers to take out personal loans. However, keep in mind that the lender will charge a higher interest rate because the loan is unsecured. Lenders charge a higher rate of interest to protect the money they will lend you. The interest rate on these loans often ranges between 14 per cent and 16 per cent. If the repayment terms, EMI, and interest rate are acceptable to you, a personal loan is a viable option.

• Flexibility
  The lender will not inquire about the reason for the loan. Furthermore, the loan will not be required to be used for a single purpose (for example, a home loan can be used only for real estate purchases). Because of its versatility, it is an appealing financing option for borrowers for many purposes.

Credit card repayments are an excellent example of this:-

If you have one or more credit cards, you are well aware of the bank's hefty interest rates. Interest rates typically range between 24 percent and 30 per cent per year. People seek personal loans to pay off their credit card obligations as a result. If you have many credit cards, consolidating them first and then getting a personal loan is a good idea. If you do it this way, you'll be able to preserve your sanity while working on multiple loans at the same time. ICICI personal loan interest rate is 10.99% per annum to 16.25% per annum.

Also Read:- The Right Lender For Obtaining A Personal Loan 

Here are a few reasons it can be used for:-

Uses-

1) Medical bills: Gold loans can help you when you find yourself stuck in numerous medical bills. Medical bills can be as high as the sky. First, try to bring the amount of bills down and talk to the hospital about it. Try asking for instalments as no interest. If nothing works out, go for a gold loan and get your amount within an hour.

2) Student debt: firstly check if the interest rate of your student loan is higher or lower than the Gold loan you are applying for. If the interest rate on the gold loan is lower,than you can pay off your student loan with a Gold loan

3) Repaying friends or family: If you have to repay someone who extended a helping hand when you needed it the most but now you are unable to pay them back, and you are tired of asking friends and family again and again, a Gold loan might be the perfect solution for you. The better option is obviously to talk to them and make them understand your situation. If you still want to pay it back now and want no further wastage of time, go for a Gold Loan. But remember, you'd end up paying extra in this case.

4) Vehicle financing: Try for an auto loan first. If it costs you more, go for a Gold loan. But remember since gold loans are short term loans, you'd have to pay them back in one year in most cases. Use Gold Loan Interest Rate Calculator for accurate and fast computations relating to gold loans.

5) Vacation: people usually take personal loans to finance their travelling, mostly because it doesn't have any bar to its usage and its long term loan. It gives you the time to repay in lower EMI's but their interest is quite high. If you have enough Gold, that by pledging it you would be able to finance your vacation, go for it.

6) Essential home repairs: Obtaining a Gold Loan to fix something essential in your home is logical and sensible.
When you actually need it, go for it. Don't confuse needs with desire. Loan must be taken Only when it's necessary. Also, check to see if repair costs can be covered by borrowing a few funds from the family or relatives.

7) Expensive consumer goods: Computers, kitchen appliances such as fancy refrigerators, furniture etc can be very costly if you actually are a person who wants everything as soon as it is launched. You can buy absolutely anything you want but first, ask yourself, is the thing really that important that I want to finance it with a loan. Can I wait to purchase it?

8) Funeral costs: getting a gold loan for your loved ones last rites is A golden gesture but first see if you can do it with the help of borrowed funds from friends and family.

9) Pets: animal care is no less than human care. The veterinary expenses can be as high as your own medical bills. Sometimes it can get really high if your pet has some serious health problems.  

10) A small business: Gold loans are widely used by small business owners to finance their working capital requirements or to but the inventory. During covid times, it is one of the most availed loan products and was greatly used by small businesses across the country to start, restart or grow their businesses.

However it's essential to check the various costs associated with gold loans before availing one such as processing fees, interest rates etc. Check Muthoot Finance Gold Loan Interest Rate and others here. Any form of loan must only be availed when there is a dire need or no other option for financing.

Read More:- The Document Verification Process In Gold Loan