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Benefits of availing of a gold loan -

1. An existing asset can be used - In gold loans, the borrower can use an existing asset, which is rarely used to generate money, to avail of a loan. The gold owned by the borrower can help in obtaining instant cash by serving as collateral and the gold would be back in the possession of the borrower after the loan amount is repaid by them.

2. Repledging - There is no restriction on the number of times an individual can use the same piece of gold to avail of a loan. This would not be possible in the case of loans such as personal loans as that depends on the creditworthiness of the individual.

3. Flexible repayment structure - Banks and other financial institutions provide a flexible repayment structure in the case of gold loans. The borrower has the option to repay the loan amount through equated monthly installments (EMI), advance interest payments, interest payments at regular intervals, or even bullet payment which refers to paying the principal amount and the total interest charged upon it directly at the end of the loan tenure.

4. Low-interest rates - Being a secured loan, the rate of interest charged by banks and other financial institutions on gold loans is lesser than the rate of the interest charged on unsecured loans such as personal loans.

5. No processing fees - Banks and other financial institutions such as IIFL gold loan do not charge any processing fees on gold loans at all while some banks may charge a processing fee, which is usually as low as 1%.

6. No foreclosure charges- Most banks and other financial institutions do not charge any foreclosure charges on gold loans at all and even if some banks may charge a processing fee, which is again as low as 1%.

7. Simple Eligibility - The eligibility criteria of a gold loan is simple, anyone above the age of 21 who possesses gold and all the required documents, be it a salaried employee, professional, farmer, or trader, can apply for a gold loan.

8. Simple documentation - The documentation process involved in gold loans is simple and minimal. Only proofs such as identity and residence are required.

9. No income proof needed - Since gold loans are secured against the gold provided by the borrower, the banks and financial institutions do not require any proof of income from the borrower.

10. Low credit score - Gold loans can be availed by anyone even with a low credit score. Unlike other loans, where the loan is approved based on the creditworthiness of the applicant, in gold loans, the loan is approved based on the purity, weight, and current market value of gold.

11.The flexibility of use - There is no limitation on the use of the amount availed through a gold loan. There is the flexibility of using the funds for any legal purpose. 

12. Fast Disbursal - The eligibility criteria of gold loans are simple and minimum documentation is required and with the assistance of online facilities, the approval and disbursal process of gold loans has become very quick.

13. High LTV - LTV refers to loan to value, banks and financial institutions provide a loan against a certain percentage value of the gold provided as collateral by the borrower. Some banks provide a loan-to-value ratio of up to 75% based on factors such as the purity, weight, and current market value of gold.

Gold loans are a quick way for individuals to meet their urgent financial requirements. It is considered a beneficial and a less risky option because of the low interest, simple eligibility, and various other factors mentioned above. The borrower should assess their financial needs and goals and accordingly decide to apply for a gold loan.

Also read this: Does The Eligibility Criteria Need To Be Fulfilled To Obtain A Gold Loan? 

Gold is the most demandable metal in the world and it is highly volatile. In India gold has more value because gold is just not metal it's like a god. and God gives you the opportunity to take the money from the bank and pay it later on the basis of your EMI. Should we avail of Gold Loans yes because there are many benefits about gold loans and other types of loans? There are some factors to choose a gold loan above any other type of loan. Gold is easily available in India and there is less paperwork required to approve the gold loan and gold loan depends on the current gold rate in the market.

Some benefits of gold loan are as follows:

1) Fast Processing: Since gold is physical as collateral, banks and institutes can easily provide such loans. For banks, approving the gold loan is an easy and safe option since they can easily sell the gold in case of borrower defaults. And requires that all processes take less time.

2) Pay interest only option: The gold loan available in a new feature that allows the borrower to Pay Interest Only While repaying the loan. The principal components can be paid at the loan tenure.

3) Low-interest rate: since gold is a very secured loan, banks charge the loan interest rate as compared to other loans available in the market. The interest available for the gold loan is between 10% to 13% just like Manappuram gold loan, it gives a 9.90% interest rate.

4) Zero processing fees: There are many NBFCs and banks that offer zero processing fees for the gold loan and provide instant gold loans.

5) Minimal Foreclosure charges: Some lenders like Manappuram Gold Loan and banks charge zero or minimum prepayment charges of 1% of the gold loan.

6) No income proof required: In the market, many banks and NBFCs require no income proof on gold loans that makes the process simple and fast.

7) Security of gold loan: The banks and lenders’ responsibility to maintain safe gold. its normally kept in the vault and therefore, the borrower doesn’t have to worry about the gold.

Gold loans are considered safe investment options. Physical gold may not offer great yield value or it may be less, however, with gold loans the borrower can make use of the cash for various expenses. There are many banks that offer low interest rates to gold loan borrowers. 7.35% for 36 months for the loan tenure. a gold loan can be a better option as compared to a personal loan if the borrower pays the loan in a shorter duration. These are also known to have lower interest rates. It is easy to get a gold loan from the bank either if such services are available, or offline. The online application can be made through the banks or lending institute's official website.

Gold loan ways are better than personal loans because it depends on the person to person, which varies in the case every borrower requires according to the borrower's condition. Therefore banks and lenders make loans for every person such as for the educational purpose is education loan, for buying a home is home loans and different types of loans. If you want a loan for small work and short duration definitely gold loans are much better than the other type of loan. Hence many people take gold loans for their small work and the process of taking loan is very fast and smooth. I think every loan is good according to personal requirements and it is easy to pay the loan. Many people think loans are not good but if you repay the loan it’s good and makes fulfillments of your ideal values though. Gold loans make your life easier to achieve your goal and complete your dreams. Taking a gold loan is the safe option because the bank keeps the physical gold in a safe vault and the bank is disappointed in their customer .But while taking the gold loan, get the full knowledge about the interest rate and read all documents carefully.

Also read this: Gold Loan For Paying Hospital Bills In Covid 

A gold loan eligibility or ability is surveyed relying upon the degree credit per gram of gold or gold advance entire you may get evaluated gold being put away as an assurance (subject to the cost of gold), the assessment of gold, and Loan to Value extent applied by the specific bank or any advancing office.

You can get a gold credit just by introducing your gold embellishments and copies of KYC reports with the advance trained professional. A couple of banks don't demand affirmation of instalment. Gold credit proceeds can be used to meet any financial emergency, which joins, provincial expenses, enlightening expenses, and so forth.

Post convenience, an agent from the bank or NBFC will connect with you to share further bearings. You may get the decision for doorstep appearance for assessment and grouping, in case not, by then you should visit the bank. Post evaluation, the bank will give the development in like way.

The gold advances are seen as the least complex and most moderate advances of all on the grounds that the gold credits are gotten propels. This suggests that the cost of the development is as of now covered by the gold one has set up as the security by the individual applying for the development. This is the explanation gold advances are accessible to numerous people from any money-related condition as long as they own gold themselves and are glad to put it up as security at the bank. Moreover, the best thing about these gold credits is that they are open for the most part across all banks and financial foundations. The manappuram gold loan is one of the occurrences of banks that are driving in gold advances particularly in the discouraged zones. Gold advances have the most un-financing costs conversely with other individual credits.

Regardless, their several segments everyone needs to enlist if they should be seen as qualified. These fuse estimates like age, genuine character records, and the idea of the gold.

Age :

Any person over the legitimate age of 18 and under the age of 75 is allowed to apply for a gold advance in any bank they may find fitting.

Models :

People working in the territories like Farmer, Trader, or are Salaried/Self-Employed specialists, or monetary experts are generally able to apply for the gold credit.

Documentation Required :

Diverse KYC files are relied upon to develop the character and address of the competitor. These files may consolidate yet are not confined to Passport, Driving license, Voters' ID Card, Aadhaar Card, and PAN Card.

Gold Quality :

The gold being guaranteed as an assurance should be on any occasion 18 carats or above. The most desirable characteristics are given to the applicant when the gold is 22 carats or all the more yet 18 carats is the most un-quality expected to apply.

Advance Amount :

The development total is all around amounting to the quality and measure of the gold being pledged as security and can go as high dependent upon the gold anyway the most negligible should be ₹1,500 and over.

CIBIL Score :

The applicant needs to have a decent CIBIL score to accomplish such a credit. Despite the fact that gold advances are gotten, the CIBIL scores add to the confirmation that the competitor can be trusted with propels. In any case, a huge load of banks doesn't demand a CIBIL score while applying for gold credits.

These are the principal capability estimates that one needs to meet with each person who needs to apply for a gold advance. The gold loan interest rate  is high stood out from various credits. This is on the grounds that the guidelines that ought to have been met for gold advances are incredibly wide and feasible for by far most.

Also read this: Is it a good time for a Gold Loan? Here is all you need to know. 

A gold loan is a loan in which the borrower takes a loan from the bank and gives their gold as the collateral. In a gold loan, the borrower is not required to submit any other collateral to the bank other than the pledged gold ornaments. After the borrower gives his gold ornaments as collateral, he is provided with a gold loan. Gold loans are provided by various banks these days. Gold loans are considered to be safe and quick loan. Many people are opting for gold loans.

Gold loan is not a new concept in the Indian market. The gold loan started from the southern part of the country. In today's time, gold loans have occupied a special place in the Indian market. Today, we see many advertisements from many gold financing companies informing the public to keep their old ornaments in safe custody and provide a loan in return. India is a country with maximum gold users, so people prefer gold loans. Gold loans were considered as short term borrowings and were no interest leveraging activity back at that time. Back then, Muthoot finance and Manappuram finance were the two most important gold loan companies established in 1939 and 1949. A Gold loan calculator can help you in calculating your loan EMI.

Gold loans have occupied a special place in India. It is considered an important asset and immediate source of cash, especially for the rural households in India. Gold loans have become very popular in the cities as well as the rural areas. The gold loan still has the growth potential with increasing small business. The gold loan originated from the southern part of the country states like Tamil Nadu and Kerala. The money lenders from all over the country started collecting gold in return for money. All over the country, the landlords, shroffs and Marwaris from other parts of India have traditionally lent villagers money against their gold for special occasions like marriage after sometimes few banks in India established the whole process of gold loaning with proper norms. After establishing proper norms, the banks make gold loaning easy. Gold loan companies started accepting deposits from the public, also many local societies that had a few individuals who controlled the whole process like how and to whom the loans should be given. SBI gold loan provides a very low interest rate.

Gold prices are touching heights in India every day. Many gold consumers who hold gold in reserve always consider taking gold loans to meet their credit requirements, and Indian financial entities have a host of options on offer.

Pros of taking gold loans:

• Existing gold ornaments can be used for assets.
• The customers can use the same piece of jewellery or gold coins or bars to get loans. This helps the borrower to get loans multiple times with the same gold jewelleries.
• The flexibility to repay the loan principal. This encourages the small businessmen and trader to take the loan who faces any kind of loan crunches.
• Faster processing- gold loans do not even require a credit score for loan approvals. For availing of a gold loan, the process is short and easy. It has lenient eligibility criteria and minimal documentation.
• Many banks provide gold loans at zero processing fees.
• Income proof is not needed. It makes it easier for the customers. 
• Gold does not depend on the credit score. So, a credit score is not required.

Conclusion

Gold loans have become popular by the time. Many people in India prefer gold loans. People living in cities and rural areas prefer to take a gold loan instead of any other loan because getting a gold loan is much easier. A gold loan is a secured loan. It also comes with a lower interest rate. Earlier, there were no proper norms of gold loans, but banks provide gold loans with appropriate norms and established rules to get loans quickly with time now. People nowadays get gold loans in less time with very little documentation. Over time gold loans are getting popular. In coming times also the customers of gold loans will increase.

Also read this: Gold Loan For Medical Emergencies 

Many banks and financial institutions offer a personal loan without the requirement of collateral being used as the security for the loan. These loans are unsecured, so the rate of interest for these loans is usually high compared with other loan schemes. Several banks charge fees for personal loans and The money borrowed by the applicant must be paid overtime and typically with interest.

Personal Loan eligibility and EMI calculators are available online to check one’s ability and probability of approval in the selection process. The EMI calculators can help in estimating the amount that needs to be paid by a person based on details like tenure of the loan, loan amount that needs to be borrowed, and rate of interest charged by the lending bank.

Where you can find personal loans?

You can apply for a personal loan from your current bank and credit unions. You can also apply for a loan online as many lenders provide loans through online mediums. If you apply for the personal loan through online mode then you get a decision in few minutes and, in some cases, get funding in as little as 24 to 48 hours after your loan gets approved from the Bank.

It has become easy to apply for Loans nowadays, Several options are available for the application process of loans. These options can be discovered through both online and offline modes. Applicants should pay attention while comparing the loan schemes especially online. Some factors affect the loan application for a Personal Loan.

Here are few things that should be considered before the application process of a personal loan-

1. The rate of Interest rate.
2. Fees charged by the lending bank.
3. Repayment terms offered by the lending bank.
4. Borrowing limits (minimum and maximum) offered by the lending bank.
5. The requirement of collateral (if any).

Eligibility criteria

The personal loan amount that you get from the lender depends on your salary, age and city of residence, and other eligibility criteria. Few extra criteria can be imposed as per the guidelines of the Bank or the financial institution. Rate of interest on personal loans also varies according to the Bank you wish to apply for the Personal Loan.

How you can qualify for a personal loan in India?

1. You should be a residing citizen of India then only you can apply for a personal loan.
2. Your age should between 23 to 55 years to apply for a personal loan.
3. You should be self-employed or employed by a government or private limited company.

Some of the popular bank schemes for personal loans offered in India are as follows 

1. State bank of India personal loan schemes.
2. Bank of India personal loan schemes.
3. Bank of Baroda personal loan schemes Axis Bank Personal Loan schemes.
4. HDFC Personal Loan schemes.
5. Punjab national bank personal loan schemes.
6. ICICI Bank personal loan schemes.

Documents required for personal loans

1. Identity proof (copy of passport/voter ID card/driving license/Aadhaar) of the applicant.
2. Address proof (copy of passport/voter ID card/driving license/Aadhaar) of the applicant.
3. Bank statement of previous 3 months (Passbook of previous 6 months) of the applicant.
4. Two latest salary slips/current dated salary certificates with the latest Form 16 of the applicant.
5. Few Passport sized photographs of the applicants.
6. Documents of employment of the applicant.
7. Credit Score of the applicant.

Some Banks demand few extra documents according to the policies and guidelines of the bank. The Loan gets approved by Bank or the financial institution within 7-15 days after the verification process of the application is completed. Follow the required steps, submit the required documents, and wait for the verification and approval notification from the bank. The loan amount after being sanctioned by the lending bank gets transferred to the Bank account of the borrower with few days from the date of approval.

Also read this: How To Estimate Repayment Of Debt In Personal Loan 

WHAT IS A PERSONAL LOAN?
A personal loan is an amount of money that a person takes from the bank for his/her personal use like marriage, vacation, holiday, getting a new home, renovating the old home and much more. After following the procedure and verification of the documents, the loan is approved by the bank, and the amount is finally credited to your bank account. After getting the amount, you can use it for your purpose.

HOW TO APPLY FOR A PERSONAL LOAN? 

If you are thinking to apply for a personal, you have to follow the following steps: - 

• Check your credit score- before applying for any loan; you need to check your credit score. More the credit score, the lesser the interest rate. An ideal credit score is around 701. You can maintain your credit score by paying the EMIs of the existing loans and all other debts on time.
  
  
• Compare the interest rates- Interest rates, the amount of your EMIs depend on the interest rate. You can check the interest rates offered by different banks on their websites. Some banks offer high interest rates, while others offer lower interest rates. You can check the amount of EMI that you would have to pay after taking the loan with the help of a Personal loan EMI calculator.
  
  
• Check the eligibility- After comparing the interest rates and other things, you can finally choose the bank you want to take a loan to. After selecting this, you can check the eligibility criteria of the banks, which too is given online on their websites.
  
  
• Fill up the form- After checking the eligibility and having done with the research, you can finally fill up the available online form. You need to fill in your details in that form like your personal details, financial details and employment details.
  
  
• Get the documents- After filling up the form, check the documents that are required. Collect your documents and then upload them to the bank’s website, or you can also go to your nearby branch of that bank.
  
  
• Verification process- After completing all the steps, the bank will verify and cross-check your personal and financial details and various other things, like your credit score, documents, etc. Once the verification is completed, the amount of money will be finally transferred to your bank account in a short period of time. 

REPAYMENT OF A PERSONAL LOAN: - Once your loan is approved, and everything is done successfully, there comes the repayment of the loan. You have to return the amount that you have taken and that too with interest.  Following are the ways by which you can repay your personal loan quickly: - 

1. Foreclosing your personal loan: The personal loan is often used to fulfil short term financial debts. You can foreclose your personal loan if you have sufficient funds to do that. You can do this as soon as your lock-in period of the loan is over. But you may have to pay a penalty charge. Also, the prepayment on your loan saves a lot of interest, but at the same time, it lessens your financial burden.
   
   
2. Repay quickly on a higher interest:  You can take up this option when you have other existing loans on lower interest rates. You can pay your personal loan at a higher interest rate. Also, prioritizing debt is a smart way of ensuring that you repay it quickly.
   
   
3. Go for Debt Consolidation Loans: When you are struggling with the monthly EMIs and have multiple debts, you can go for debt consolidation loans to ensure that you are not lagging in paying your personal loan too often.
   
   

Different banks provide impressive interest rates on their personal loans. The interest rates of  Fullerton India Personal Loan ranges from 11.99% - 36%. There is also a processing fee. You can easily apply for a Fullerton India personal loan online on their website. After the approval of your loan, the amount will be a credit to your account within 30 minutes.

Also read this: How to Apply Online for a Personal Loan? 

Personal loan -

A personal due to its high reliability and minimal processing time makes acquaintance easy for the borrower. The one who borrows is in need which makes him/her prone to opt for a loan. At such times, Personal loans can come to aid.

The personal loans can be used in cases of -

• Medical emergencies due to health issues or accidents
• Home renovation or construction
• Higher education purpose
• Debt consolidation purpose 
• Travel purpose
• Wedding purpose

There is no restriction on the utilization of the Canara bank personal loan amount.

Eligibility for a personal loan -

1. The applicant must be between 21-75 years of age which differs as per the employability.
2. The salaried applicant age should be between 21-58 years of age, while for self-employed, it has to be 21-65 years. 
3. A CIBIL Score of above 700 is mandatory.
4. An income proof has to be submitted along with KYC Documents. 
5. A person with a low credit score has high chances of a loan getting rejected.

Documentation -

Documentation is done for a background check. KYC documents, along with two passport size photographs, have to be submitted for verification. An address proof, Identity proof and Income proof have to be submitted. 

The following are the enlisted documents among which you can submit one - 

1. Identity proof :
   Aadhar card, Driving license, Voter ID, PAN Card can be submitted.
   
   
2. Address proof :
   Aadhar card, Utility bills, ration card, Passport, Rent agreement of at least one year.
   
   
3. Income proof :
   ITR, Bank statements of 3 months, Salary slips of last 6 months.

Application in personal loans An application can be made through Offline or Online modes from the official website of Canara Bank. After application, the documentation process is done to submit the required KYC documents for verification and income proof. An Income is necessary for loan approval. A loan for Rs.10 lakhs or more can be granted. Loan tenure of up to 5 years is given to the borrower or applicant. The advantage of a personal loan is less paperwork and documentation involved in the application.

The approval rate is faster compared to other types of loans and pre-approval offers are also available. Several Prepayment options are also given by banks ranging from 13 to 36 months, and no fee is charged upon them. 4% of the Principal Amount is charged for the repayment period between 13-24months. 3% of the principal amount is charged on 25-26 months prepayment options. An exceeding 36 months for prepayment are charged with only 2% of the principal loan amount. A GST is applicable over the specific prepayment options you choose. 

It can take a time of almost 15 days to get this loan approved, but it can take less time for a loan to be approved for Canara Bank customers. An Approval letter is given to the borrower from the bank. The letter contains information about the lending bank, personal loan scheme, Personal loan interest rate, Repayment options, processing fee, total loan amount, Tenure, repayment options etc. The borrower can check eligibility using an eligibility calculator. The Interest rates for personal loans are only 9.99%. A 1% of the loan amount is charged as a processing fee. However, Rs. 2135 is the lowest EMI per lakh to be repaid. 

Personal loan Repayment options -

There are several loan repayment options provided in personal loan by the bank, which are -

• Post Dated Cheques :
  A check of future date is deposited in the bank.
   
• Electronic Clearance System : 
  An amount transfer from digital platforms is done.
  
  
• National Automated Clearing House : 
  NACH offered by NPCI can be used as a model for real-time transactions in debt consolidation.
  
  
• Standing instruction : 
  An instruction given to the bank to make payments from a bank account of the borrower's indicated amount.

Also read this: Personal Loan For Child's Education 

There are a lot of financing options available in the market. And a number of banks and NBFCs (Non-Banking Financial Companies) provide the same loan at different interest rates, making it confusing. However, a lot of loans have similar yet various alternatives for them. For example:- a personal loan is an unsecured loan, but you can get the funds from a secured gold loan. So both the personal loan and a gold loan are perfect alternatives for each other.

What is a gold loan?

A gold loan is a secured loan where funds are acquired by pledging a gold asset. The paperwork is significantly less, and you can quickly get your loan approved on the spot. The interest rate for gold is significantly less, but you'll have to make sure to pay your instalment on time. Because if you're unable to repay the loan amount, then your gold ornaments or coin will be seized by the bank and will be sold off at an auction to recover the loan amount.

Advantages of gold loan

Processing: Gold loan is an easy and fast processed loan. A lot of banks and NBFCs (Non-Banking Financial Companies) give gold loan facilities processed quickly. So you don't have to wait for days to get your loan approved. A lot of banks like Yes Bank Personal Loan approve your gold loan within one hour.

Credit Score: Credit score is a number between 300-900 that defines your creditworthiness. You don't have to maintain a good credit score to be eligible for a gold loan. You can get your gold loan application approved even if your credit score is low.

Interest Rate: The best thing about a gold loan is that you get low interest rates. The interest rate is very low compared to other banks, so you save a lot of money that you would've paid as interest. You can lower your interest even more if you pledge any other asset as a security.

Repayment: Banks offer flexible repayment options to the customers. So you can choose the EMI option and a loan tenure that is best for you. But it's advisable first to compare all the options and then select the right one for you.

Prepayment penalty: The bank charges no prepayment penalty. So you can quickly get a gold loan without paying a prepayment amount. Security:- You get a lot of benefits like free bank lockers. So you can store your gold safety in bank lockers and take it whenever you want it back.

What is a personal loan? 

A personal loan is an unsecured loan, so you don't have to pledge any assets to get funds from this loan. Instead, you'll have to maintain a decent credit score to get your loan approved. So if your credit score is high, then your personal loan can be quickly approved, but if your credit score is low, then a lot of banks will reject your loan application.

You'll have to repay the loan instalments on time because it will be negative, which will make it hard for you to get your future loans approved.

Advantages of personal loan

Collateral: Unlike a secured loan, you don't have to pledge any collateral to be eligible for a personal loan. This is the most significant advantage of a personal loan because not everyone has enough asset to risk. So this option makes a personal loan the most preferred choice when compared to other financial services.

Repayment: Banks offer a lot of repayment options to customers. So the customers are flexible in choosing any one of the given options. It's advisable first to calculate your budget and income using tools like a Personal Loan Calculator and then select the right option for you.

Hassle-free processing: You don't have to wait for months and months to get your loan approved. You can quickly get your personal loan application approved if you meet the eligibility criteria perfectly.

Paperwork: The paperwork and documentation required for a personal loan application are very little. So you don't have to stress yourself over the documentation process.

Conclusion

You can apply for a gold loan if you have gold ornaments to pledge and get funds immediately. You can apply for a gold loan if you have a bad credit score and you require funds. But if you don't have gold ornaments or any asset to pledge, then you can use your credit score to get a personal loan approved from any bank or NBFCs.
Also read this: Here Are Things To Know About A Personal Loan 

Personal loans can be availed from banks and other financial institutions in India for any personal need. These loans are unsecured and do not require a lot of documents and effort for the application procedure. Personal Loans can be used for purposes like educational requirements, home renovations, a purchase, traveling, wedding ceremonies, etc.

Personal Loans have a higher rate of interest than other loan schemes offered by Banks and financial institutions generally starting from 8.95% per annum in India. These loans are unsecured and that is why these loans have a higher rate of interest than other loan policies offered in India. The high interest is resisted by many people as it increases the monthly EMI amount that has to be repaid by the borrower to the lending bank.

The rate of interest for some Indian Banks offering Personal Loans is given down below :

a) State Bank of India:       9.60% p.a. - 15.65% p.a. 

b) Canara Bank:                 12.05% onwards 

c) ICICI Bank:                     11.25% p.a. - 21% p.a.         

d) HDFC Bank:                    10.75% p.a. - 21.30% p.a. 

e) Bank of Baroda:             10.50% p.a. onwards 

f) Kotak Mahindra Bank:   10.50% and above 

These interest offered by Banks and financial institutions are usually higher than that of the other Loan schemes like Home loans and Car loans offered by the Banks or financial institutions. The unsecured nature of these loans makes the application procedure of these loans a bit tougher than other loans that require collateral as security from the borrower. The unsecured feature of these loans also makes the rate of interest charged for these loans by Banks and financial institutions higher than other loans. 

A personal loan EMI calculator available on several websites online can be used to estimate the repayment EMI amount to be paid back to the lending bank every month. These calculators prove to be extremely beneficial in the determination of the repayment amount to be paid each month and in creating a budget for the future. The details required to use these calculators include the Loan tenure, interest rate chargeable, and the loan amount,

The Eligibility criteria for Personal Loans in India is given down below:

1) The applicant should be a residing citizen of India then only one can apply for a personal loan in India.

2) The applicant’s age should be between 23 to 55 years to apply for a personal loan.

3) The applicant should be self-employed or employed by a government or private limited company.

4) The credit score of the applicant should be at least 750.

5) The applicant should have the required documents for the application procedure for a Personal Loan.

Documents Required

The Documents required for the processing of a Personal Loan in India include the following:

a) Proof of identity (copy of passport/voter ID card/driving license/Aadhaar) of the applicant 

b) Proof of residence/address (copy of passport/voter ID card/driving license/Aadhaar) of the applicant.

c) Bank statements of the past 3 months (Passbook of previous 6 months) of the applicant.

d) The latest salary slips/current dated salary certificates are attached with the latest Form 16 of the applicant.

e) Few Passport sized photographs of the applicants.

f) Documents of employment of the applicant.

Several banks may demand certain additional documents as per the policy of the Bank. Do check out all the requirements and the procedure of approval from various banks before applying for a Personal Loan. 

Banks have their unique criteria for eligibility for Loan schemes. The rate of interest offered by different banks also differs from each other. Some banks provide lower rates of interest for Personal Loans than other Banks. 

Such schemes that provide a good deal for a personal loan offered by banks and financial institutions in India is given below:

i) Bank of Baroda Personal Loan

ii) Fullerton India Personal Loan

iii) ICICI Bank Personal Loan

iv) Punjab National Bank Personal Loan

v) State Bank of India Personal Loan

vi) Syndicate Bank Personal Loan

vii) Bank of India Personal Loan

Also read this; HOW TO CHECK THE CREDIBILITY OF A LENDER BEFORE AVAILING A PERSONAL LOAN 

Compared to all or any of the loans, a personal loan is just one that sometimes features a higher rate of interest, which successively can increase your Equated Monthly Instalment (EMI) burden. Therefore, some like it better to cover the personal loan before the tenure ends. This is often referred to as over-payment of the loan. Under this process, you save on the EMIs and therefore the interest that you simply pay with the principal amount within the end of the day. Before you opt to cover it, you would like to hunt permission from the lender, while in some cases, lenders also charge foreclosure penalty charges, if you pay the loan before the agreed tenure. The bank levies a penalty to catch up on the loss of interest amount.

There are 6 Things when over an personal loan would be a wise decision.

Reduces your debt burden: If you've got adequate finances to pay the loan amount before the loan tenure ends, you'll do so. However, you would like to possess a word together with your bank on whether or not they charge any penalty for over. The over facility reduces your debt burden; hence it might be an honest option for your financial health.

No impact on your credit score: The ICICI personal Loan doesn't affect your credit score.

Avoid over of the loan in the latter stages: When your applied personal loan is within the latter stage of repayment, then it wouldn't be a wise option to cover it. you'll be unable to accumulate enough savings and you'll even have to face penalty charges. Analyze before choosing over your consumer loan within the latter stages.

Think about the charges: Once you initiate the over of a loan, the bank levies a penalty of fifty once a year of the outstanding amount and other applicable charges.

Personal loan part-payment: If the ICICI personal loan borrower wishes to scale back the monthly installments and therefore the tenure of the personal loan, he/she can choose a personal loan part payment. The part payment amount is going to be subject to the terms and conditions as set by the financial lender.

Regular personal loan over A regular personal loan over is when the borrower clears all the EMIs. Following the payment of the last EMI, the borrower has to intimate the lender to issue the No Objection Certificate for the over of the loan and finally the loan over the certificate.

Over loans may or might not be the proper step. you would like to research your financial situation before paying off the whole loan amount directly. you'll initiate the over of a Personal Loan online by visiting the official website of the ICICI bank.

Partial advance payment of the loan

1. There are cases where you'll be eligible for a bonus or windfall from another source that you simply would like to use to pay off your loan. However, the quantity might not be enough to pay off the whole loan. That's once you can choose the partial prepayment of the loan.

2. There will even be some penalties involved within the partial prepayment of the loan. get on the lookout for them. Lenders also can restrict frequent partial advance payments and should allow only a limited number of them. Each of those conditions varies between lenders, so it's good to see them before making advance payment.

3. This can also not end in the closing of your ICICI personal loan account. you'll have a couple of more EMIs left after you partially prepay the loan, which you'll get to pay off immediately.

Conclusion
Over ICICI personal loans may be a relatively simple process as you do not have any assets pledged with the bank which require to be released. Over your loan is a crucial duty that shouldn't be neglected at any cost. remember the procedures involved in properly closing your loan to avoid any problems associated with your credit.

Also read this: PERSONAL LOAN AND THINGS TO DO TO AVAIL PERSONAL LOAN 

When a person needs a dynamic loan that has no limit on the ways it can be used for and is user friendly they go for a Personal Loan. It is one unique offering that helps in providing a lump sum amount of money that can be used by the borrower. The borrower is not bound to use the loan to purchase a car like in a car loan or consumer goods as in the case of a consumer good loan. This loan also offers loans with any collateral which makes it the most preferred type of loan in the country. Certain things have to be considered if you are going for this type of loan. Even minute differences can save you or cost you thousands. 

This type of loan mainly depends on the following factors -

• Principal Amount :
  It is the amount of money that the borrower is looking forward to borrow from the bank. The lower limit and upper limits of the amount that can be borrowed varies from bank to bank and also on the eligibility of the borrower. The interest is charged on this principal amount.
  
  
• The interest rate charged :
  The banks don’t just give out personal loan for free or non-profit purposes. The banks charge a sum of money known as interest on the principal amount. This interest is not to be paid apart but is included in the EMI’s (Equated Monthly Instalment). These rates vary from bank to bank and person to person depending upon the bank’s policies and borrowers eligibility. A bank may charge higher interest rates if the loan is not secured.
• Tenure of the loan :
  The tenure means the time limit for which the loan is needed. This is important as the interest charged by the bank depends on that. Different banks have different minimum and maximum tenure limit. The longer tenure of the loan may attract higher interest rates.
  
  
• Credit Score :
  A credit score is a three-digit code that ranges from 300 to 900. It is the score that is given to the person depending on their earlier lending habits. A good credit score will attract a better interest rate from the bank.
  
  
• Collateral factor :
  This factor depends on the factor of risk. As most of the personal loans are not secured with collateral the interest rate is higher than usual. On the other hand, if any collateral can be provided to the bank of complete or partial value when compared to the principal it may attract a better deal for the borrower.
  
  
• Miscellaneous factors :
  There are also some miscellaneous factors like age. Many banks offer personal loan to people of or above the age of eighteen and also some offer personal loans to individuals of age twenty one or above.

Thus these six points have to be considered while opting for a personal loan so as to get the best possible loan offered to you. Indian Bank personal loan is an offering by the bank in the personal loan segment. The bank offers loan amount of up to 20x times the gross monthly salary of the applicant. The loan tenure that they offer is up to 7 years and can be paid back in easy monthly EMI’s. The bank has been offering one of the fastest and easiest personal loan approval processes for years now and is trusted by lakhs of people in the country. They also have special schemes for pensioners and defence personnel.

Conclusion -

A personal loan of being such dynamic in nature demands to consider some other factors into consideration before opting for a personal loan. These factors not only can save you thousands of your hard-earned money but also ensure you get the best possible offer for your convenience.

Also read this: Things to consider before applying for a personal loan in India 

CIBIL Score

A CIBIL Score is a score ranging from 100-900, which is assessed by every financial institution, NBFCs or bank before approving any loan. A high CIBIL Score depicts a borrowers creditworthiness, and a poor CIBIL score represents the previous or current defaults. A score of 700 is highly favorable for getting a quick disbursal of a loan.
A credit bureau computes the CIBIL Score of a potential individual depending on one's credit history. A credit bureau is highly regarded for its accuracy and transparency while evaluating this Score. A number of enquiries made to analyze this Score are also mentioned in the report.
A CIBIL Score is one of the eligibility parameters in Personal loan eligibility.

Importance of CIBIL Score

A CIBIL score serves as a report card for your financial honesty. It is a signal that notifies a lender either 'yes, you may grant the loan' or 'no, he/she does not appear to be able to repay on time.'

1. For quick Loan Approval- While applying to loans that don't have any security involved is assessed with a CIBIL Score. A Credit track record helps in reviewing one's potential and past defaults while sanctioning an unsecured loan. The overall process becomes complicated with a Credit history containing defaults and having a score less than 350. 

2. Secured and Unsecured Loans- CIBIL Score is mandatory for secured loans and unsecured loans as one has a mortgage involved whereas the other doesn't. This Score helps in evaluating the risk of the loan which the creditor poses while lending. A good credit profile signifies the borrower's repayment ability to complete the debt obligation in the given term. 

3. Negotiating the rate of interest- The interest rate varies from banks to banks and mainly depends on the applicant's profile at loan approval. Having a good CIBIL Score can help you negotiate the rate of interest and acquire a great deal. 

4. Less costly Insurance Premium- Insurance is vital while availing of any loans. It is a crucial financial instrument that covers your debt and dues when you are unable to pay them or deceased, depending on the insurance's policy. Depending on the borrower's credibility, repayment history and defaults, a lower premium can be availed.

CIBIL Score- Effective ways for improving It

A poor credit rating can be raised by performing the following things. It is important to know that it will take at least six months to notice a significant difference in your credit score and 'improvements' on your credit report.

a. Obtain your most recent credit report- This will help you estimate your current report and assist you in managing your finances and minimizing errors. You can evaluate the reasons behind your low credit score and the reasons behind it. 

b. Never postpone payments- You can't give excuses for late repayments as the bank charges a surplus amount on every late repayment. So don't slip into the habit of making late repayments of your debt, as it can lower your CIBIL Score and charge a hefty amount as a penalty.  

c. Maintain a varied credit portfolio- A portfolio will help the creditor/lender in estimating your creditworthiness and your debt obligation. d. Avoid having unused credit cards. It is no use in keeping several credit cards when you don't use or require them as you will spend unnecessary annual charges over it. 

e. Debt management that is savvy- If you manage your debt consolidation smartly, you won't be facing any burden while making repayments. A credit card can also imply revolving credit which will eventually have a negative impact. Completing the debt with a personal loan is an effective way for meeting your obligations where less interest rates will be incurred. 

f. Don't opt for longer term- A loan term can have a direct impact because of the incurring interest on the loan amount. If you avail a loan of 3 years and mid-way extended it, then it will have surplus interest charges imposed on it with extension charges.

Thus, to obtain a Yes bank personal loan, one can improve his/her creditworthiness through the factors mentioned above.

Also read this: The Right Lender For Obtaining A Personal Loan