Loans are financial help provided by banks and Non-Banking Financial Companies (NBFCs) to customers for over several decades. The Reserve bank Of India authorizes these loans sanctioned by them, and a personal loan is one such loan that is categorized as unsecured. An unsecured loan doesn’t require a physical asset to be pledged to avail the loan, whereas a secured loan needs an asset. Gold loans, car loans, home loans, business loans are some of the secured loans in the finance market. A personal loan is a generic loan. Therefore, a customer can take out this loan for any kind of reason and purpose.
A personal loan aside from availing for emergencies or other financial requirements can also benefit from this loan to make more money. For instance, you can take out this loan to start a business or expand one or invest in one(shares). With the help of the sanctioned loan amount, you could make the business prosper and increase your credit outflow and pay off the personal loan efficiently. Banks and financial institutes also provide prepayment options to repay your loan amount with interest before the end of the tenure. The non-requirement of the collateral with its exuberant benefits and features has substantially increased its demand over the years. The personal loan can also be availed for home renovation, car purchase, appliance purchase or scientific research.
A personal loan only requires minimal documents like ID proof, address proof(Aadhar card, voter Id, passport, driving license or PAN card), Income proof(salary slips, ITR, form 16, etc..), employment proof( employee office id or business proof), and bank statement. With these documents provided that they are unexpired and completely government-authorized, you can avail the loan both in online and offline mode.
By opting for online mode, you fill in the necessary details(name, age, address, etc...), scan and upload the required documents, fill in the loan details(loan amount, tenure and interest amount) and submit the application form. And by opting for the conventional offline mode, you visit the bank or financial institute in person and submit the application form. Either way, after complete authentication and verification of the applicant and the application, the personal loan is sanctioned. The loan amount is disbursed immediately after its approval in either mode.
The personal loan processing is exceptionally rapid, and to avail financial help from the authorized lenders without pledging asset as collateral, the personal loan is the best option. The loan amount of a personal loan is pre-decided by the banks and financial institutes and varies from Rs25 thousand to Rs40 lakh. The loan term of a personal loan is a minimum of 12 months and 60 months. The personal loan interest rate depends on the loan amount availed, and tenure opted. The rate starts at 9% per annum in most banks and financial institutes.
A Personal Loan EMI Calculator can be used to calculate and know all about the interest rates or NBFC online conveniently. The processing fee of a personal loan is incurred for the processing and approval of the loan application. The charge is around 2.5% of the loan amount. The prepayment or pre-closure charge is procured if the borrower closes the loan account before the decided end of the tenure. The prepayment fee depends on when the borrower closes the loan during the tenure. It is NIL if one prepays during the end of the term(last six months) in most banks and NBFCs and is up to 6% of the outstanding loan amount in the initial or mid-stage of the loan term.
HDFC is a highly reputed bank with millions of customers and branches set up all over the world. The personal loan in this bank is imminent and has proficient features. The HDFC Personal Loan Rate Of Interest starts at 10.5% per annum, and the interest rate calculator is available on its official platform.
Must Read:- Is It Possible To Take More Than One Personal Loan At The Same Time?