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The credit score maintaining agency, TransUnion CIBIL states that the personal loan approval rates are going to decline in and after the covid era. This will be true for most credit lending agencies. They used the financial crisis of 2008-09 to come to this conclusion. This was mentioned in a report by the Times of India. Based on the consumer payment history analysis, whenever there is some financial crisis, the customers first pay for the secured loan to save their assets from being confiscated and sold. Then the personal loans and credit cards come into the picture. Trade Union mentioned in a report.

The default rates are likely to move up, mostly in the case of credit cards and personal loans. Since home loans and car loans are secured, they are not at high risk of defaults. This makes the lenders more eager to give secured loans such as gold loans, automobile loans etc. Industry experts further believe that people who have already opted for a moratorium granted by the RBI ( Reserve Bank of India) till August 31 will find it much difficult to avail online instant personal loan now since going for a moratorium puts up doubt in the minds of credit lending agencies about the capacity of the borrower to pay back the loan.

So, credit lending agencies will obviously avoid and take precautions by not taking a needless risk by giving additional loans to people who are not able to pay back their existing loans. RBI had stated that opting for the moratorium will not have any adverse consequence on the CIBIL score of the borrowers. But it has been seen that a lot of credit lending agencies are straight-up rejecting the applications of those borrowers who have opted for a moratorium. While giving a loan, credit lending agencies check the credit score of the applicant, their source of income, their job stability, type of employment, net monthly salary and other details to see if they would be able to repay the loan.

If the borrower has opened for a moratorium on loan, the lender concurs that the borrower is facing temporary financial issues and is unable to pay for their existing liabilities. In such a case, the lender would seldom sanction an additional loan to the borrower. However, with the second wave lowering down in most parts of the country, and the per day vaccination number rising tremendously every day, it is expected for the condition to get better soon and the economy will start functioning as it was before the crisis happened. Although the situation is bad for borrowers seeking to get loans, it is not as bad as previous years when most people struggled to get personal loans for several months. Widespread economic disturbances topped with unresolved and uncertain times made all lenders extra cautious in lending any loan to anyone in 2020. You can check for axis bank personal loan interest rates, eligibility criteria etc. here.

The popularity of personal loans' has immensely increased in the past few years. The reason why personal loans are so in demand is that they don't restrict you to use the funds obtained from it in a certain way. A lot of people in Pandemic started their home renovations since they were at home for months and could get the work done in front of their eyes. Many people got marriages done during lockdown to lower down the marriage costs. This might sound a little awkward but in India, many people spend more on the children's marriage costs than their education costs. The situation is improving and it is assumed that after this year, the economy would be on a fast track and the high prices and high benchmarks for obtaining loans would also come back to their original shape.

Must Read:- How To Estimate Repayment Of Debt In Personal Loan 

Authorized lenders like Banks and Non-Banking Financial Companies(NBFCs) provide financial services to customers in need and want day after day all over the world and all year round. Lending loans are a primary part of their job. The Reserve Bank OF India approves these loans before ṭhey are available in the finance market. Loans are broadly categorized as secured and unsecured. For example, a gold loan is secured and needs an asset as collateral. A gold loan is advised to be availed from these lenders over unauthorized ones. But among these two, they vary in certain aspects which are to be considered solemnly before taking out a loan from them.

Banks :- Banks are financial providers registered under the Banking Regulations Act of 1949. They are government-authorized, providing many commercial services like depositing money, cash withdrawal, amount transactions, settlements, account holdings, locker services, and lending loans.

There are different types of banks, namely private banks, public banks, cooperative banks, and development banks. Private banks are owned by private individuals or societies or cooperations and highly commercial. SBI, HDFC Bank, Axis Bank, and Yes Bank are some of the private banks. Public banks are owned by central or state governments and are more service-minded than private banks by nature. Indian Bank, Indian Overseas Bank, Bank of Baroda are some of the public banks. Development banks are designed for short-term and long-term investment projects and are primarily in the development sectors of the finances. IDBI, IRCI are some of the development banks. Co-operative banks are majorly designed for rural India, and it concentrates on providing financial services to the agricultural and day laborers of the nation. 

The loan offers are more favorable in cooperative banks than others.TJSB and Bharat co-operative banks are a few of them :-

Non-Banking Financial Companies (NBFCs) :- Like banks, they are also financial providers legally licensed and registered under the Companies Act of 1956. The differences between a bank and an NBFC are that NBFCs can’t draw or issue demand drafts and are not involved in the transaction and settlement processes. Asset companies, infrastructure companies, and microfinance institutions are three primary divisions of NBFCs. UTI AMC, Muthoot Finance, Manappuram Finance are some of the famous NBFCs.

Comparison between banks and financial companies on Gold loan features :-

Financial companies are much more liberal and lenient on their rules and terms as opposed to banks. Though the documentation requirement is minimum in a gold loan, in general, NBFCs provide gold loans much more simply than banks that follow customs to the end. But, NBFCs tend to compensate for that lenience by charging high interest rates and additional charges( processing fee, commitment charges, TOD charges, etc). The loan amount sanctioned for a gold loan depends on the value of the gold and the rate of the gold on that day. 

The Gold loan rate per gram starts at Rs 3,506. The maximum Loan To Value Ratio of a gold loan as per the RBI is 90%. However, banks and NBFCs can adopt the LTV ratio to their convenience. Most banks have a high LTV ratio(like 90% or 80%) than most NBFCs(75% or 80%). The processing fee is incurred for the processing and approval of the gold loan application. The fee varies from one financial lender to another. But banks and NBFCs charge the same amount more or less. The prepayment charge is procured if the borrower closes the loan account before the decided tenure date, and a gold loan preclosure fee is widely NIL in most banks and financial companies. Although, recently, the RBI banned NBFCs from collecting preclosure charges on floating term loans.

Manappuram gold loan is one of the highly reputed gold loans with exemplary features. The Manappuram gold loan rate per gram varies from Rs 3,506 and Rs 4,621. The LTV ratio is 75% in the NBFC, with an interest rate beginning at 7% per annum. The loan can be applied online or offline.

Also Read:- Four Gold Loan Eligibilities That Serve As An Advantage 

The pledging of the gold articles in a household is expected to increase across the states with the gradual increase in the easement of the restrictions of corona-virus pandemic.This is because the people are strapped for cash to pay for the committed outflows. The corona-virus has affected everyone with its rising rate of infection, number of deaths, and it has forced the people to borrow money and thus, has dragged most of the people in financial debts and crisis. 

Most of the people have also lost their sources of income in this time and therefore, have no other option except of borrowing money. Therefore, a gold loan is in demand right now as everyone can make use of the gold that has been lying in their household from a long time and can fulfill the basic requirements and to consolidate debts in this time of an emergency. 

Also, the interest rate in a gold loan is really lower as compared to the other loans and the amount of loan also depends on the market value of the gold that is being deposited by the borrower. The gold loan rate is really affordable as compared to the other loans. Because of all these reasons, there is a demand of the gold loan in the market and more and more people are bending towards this option because it is the most convenient option to go for.

Benefits of a gold loan -

A gold loan has a lot of benefits that differentiates it from the other loans and makes it one of the best loans available in the market. The SBI gold loan interest is one of the most reasonable interest rates.  

Following are some of the benefits of a gold loan:-

No income or salary criteria:

All the money lenders, before granting a loan to a borrower, require that the borrower has a strong repayment capacity and a stable source of income, so that he is able to repay the loan but it is not in case of a gold loan. A gold loan is a secured loan which means that the money lender or the bank is provided with some security and therefore, there is no need of depositing any income proof when applying for a gold loan. This is because the person is pledging a valuable asset to him i.e. the gold articles in return of the amount of loan.

No need of a good credit score:

As a credit score is one of the most crucial factors in other types of loans, it is not as important in case of a gold loan. As long as one provides his gold articles to the bank or to the money lender, there is no need of having an ideal credit. score or a good credit history. Therefore, a person who is not working or who is unemployed or unsalaried can also apply for a gold loan because the most important thing in a gold loan is the gold that is pledged by the borrower. 

Lesser processing time:

The processing time in a gold loan is comparatively lesser as compared to the other loans. This is because there is minimal documentation and the verification process is also not so long. Therefore, a gold loan can be considered in times of an emergency as it is not a time consuming process. Only a few hours are taken for the processing of a gold loan as the main documents that are required are only the identity proof and the address proof. 

Convenience:

A gold loan is one of the most convenient loans as the only task of the borrower is to provide the gold to the money lender or to the bank and in return, the amount of loan will be disbursed in his bank account within a few hours. A person can get upto a maximum of 80% of the market price of the gold.

Read More:- Gold Loan Calculator takes away your worries of paying debt 

Personal loans are available from practically all banks and financial institutions in India. It's an unsecured loan that necessitates a high credit score and history. In times of financial distress, it has proven to be a blessing for individuals all around the country. Personal loans require minimum documentation and can be applied for both online and offline, depending on the applicant's preference.

So many people have benefited from personal loans to help them get through difficult times. The applicant might use a Personal loan Interest calculator to figure out how much money they need to borrow from a lender. Personal loans have become more popular in recent times, particularly during times of epidemic. Many people across the country are seeking personal loans from banks and non-banking financing organizations (NBFCs). It's been utilized for a variety of personal reasons, including weddings, businesses, starting, house repairs, travel, and more. For additional information about the personal loan, go to the bank's official website or download the app.

HDFC Personal loan are easy to apply for and require minimal documentation. The bank's interest rate and processing costs are both very reasonable. The bank also offers a variety of personal lending plans. Through the bank's website or app, one can obtain all necessary information on personal loans and the application process. A joint personal loan is straightforward to obtain and only takes a few documents. A joint personal loan can be obtained from practically any bank or non-banking finance company (NBFCS).

The following are the documents needed to receive a shared personal loan:-

• Identity Proof:
  The following documents are required for identity proof: Aadhar Card, PAN Card, and Passport. Valid License of driving, Passport, voter identity card. A properly filled application form with signature and all the required information.
  
  
• Address Proof:
  Aadhar Card, Valid Driving License, Valid Passport, Voter’s ID Card. Salary slip of borrower, income tax return documents for verification, employment proof, bank’s statement, income proof. A credit score of 750 or more Passport Size photographs.

• Age proof documents:
  The needed age must be between 21 and 70 years old. Employees that are named below can be co-signers on a joint personal loan. The co-signer must be the borrower's blood relative. Individuals who earn a living. Sole proprietors who work for themselves. Individuals who are self-employed or professionals who work for a partnership firm. Individuals/professionals who work for themselves and operate their own businesses. Individuals who work for themselves in public-limited businesses. Someone who has been self-employed for at least 2 to 3 years and runs a business.

The following are some of the advantages of a joint  Personal loan:-

• Reduces the burden:
  Obtaining a combined personal loan during a financial crisis might be advantageous to the borrower. It may alleviate the strain on the borrower because the loan is repaid by two people working jointly. When applying for a combined loan, make sure that the co-signer is a blood relative.
  
  
• Lower interest rate:
  When you apply for a personal loan with a co-signer, you may be eligible for a lower interest rate. Personal loans are available from a variety of banks and non-banking financing organizations (NBFCS). This is one of the most significant advantages of obtaining a combined personal loan.
  
  
• Fast approval:
  If the co-signer meets all of the standards, the personal loan is approved quickly.
  
  
• Minimal documentation:
  A combined personal loan has minimal documentation requirements. It varies depending on which lender is chosen. To obtain a personal loan, one can easily submit the appropriate documentation to banks or non-banking financing organizations.
  
  
• Conclusion:
  There are numerous advantages to taking out a joint personal loan. A joint personal loan can be obtained from any bank or finance company. Following acceptance, the loan amount can be simply sanctioned. Joint personal loans can be beneficial in a variety of ways. A combined personal loan application is straightforward to complete. The application can be completed online or offline, depending on the applicant's preference.

Must Read:- How to Apply Online for a Personal Loan? 

Personal loan protection insurance protects you against defaulting on your debt due to unforeseen events such as death, unemployment, or medical issues. Your dependants or family will not be responsible for paying back the personal loan. You have the option of paying the charge in addition to your personal loan EMI payments. You have the option of paying the premium all at once or in equal payments. Personal loan protection insurance protects you against defaulting on your debt due to unforeseen events such as death, unemployment, or medical issues. Your dependents and family will not be responsible for repaying the personal loan.

Few things need to consider 

1) Make sure you can afford it: It will be an additional expense to pay your personal loan insurance premium. As a result, you must determine whether you are financially capable of paying the premiums. Make room in your monthly budget for the premium, which can be paid in instalments or in one large sum. Paying in instalments, on the other hand, attracts interest, making the procedure more expensive.

2) Examine the many personal loan insurance options: When a bank representative informs you about this alternative, personal loan insurance is frequently a last-minute purchase. However, because it was a last-minute buy and you weren't able to compare alternative offers, this could end up being a costly purchase. The premium rate offered varies from one company to the next. As a result, a comparison of different offers is required. Many loan insurance policies, for example, do not cover scenarios including job loss. If you fall within the designated category, you will not be able to take advantage of the offer.

3) Understand your personal loan insurance policy: Before purchasing personal loan insurance, it is a good idea to familiarize yourself with the terms of service. This can assist you in avoiding circumstances when you are unable to make a claim on your insurance. Indiabulls is one of the country's most popular home loan lenders. Indiabulls Personal Loan customer care number is 1800 200 7777.

4) Examine the pre-closure fees: When you foreclose on a loan before the agreed-upon term, you are likely to forfeit the insurance advantages that come with it. As a result, you should know if you will receive a refund or whether your premium will be cancelled. Getting personal loan insurance is usually a good idea, as long as you do your homework on the conditions of service.

Benefits

Some banks offer loan insurance with personal loans, however, it is up to the borrower to accept or decline the policy. Purchasing a debt protection insurance plan has various advantages, including: Loan insurance programmes minimise a borrower's outstanding loan and cover his or her monthly loan payments in the event of unforeseen occurrences such as job loss, accidental death, or temporary incapacity. Under Section 80C, several loan protection insurance programmes may give tax benefits. Money-back plans are available on some personal loan insurance policies, in which the customer receives a specific sum at the end of the policy. Personal loan EMI Calculator  is very helpful in this case, it shows us the EMI which we have to pay monthly out of our monthly income. It helps you to prepare a budget which helps in maintaining all the expenses along with EMIs.

Also read:- Personal Loan For Child's Education 

Moreover, you can get a personal loan without depositing any collateral as security or going through a lengthy personal loan evaluation and verification process. Generally, an instant personal loan has easy eligibility criteria, requires minimal paperwork, has a simple online application form that you can fill in a few minutes, and offers instant evaluation and approval with disbursal within a few hours. However, to benefit from this short and simple process to access funds and benefit from cheap and affordable personal loan interest rates, you need to get certain things right that revolve around your eligibility criteria. To help you achieve this, here are some ways as to how you can apply for a personal loan during a financial crisis quickly to tackle your urgency as given below:

• Review and try to improve your credit score for fast approval: An instant personal loan does not ask you to deposit collateral as security. Therefore, your credit score has quite an impact on your eligibility. The higher your credit score, the better are your chances of availing an instant personal loan approval. Moreover, the rates of interest of a personal loan can be negotiated, and a good credit score of 750 and above can provide you an upper hand.

Keeping a good credit history and credit score can make sure that you can avail of a personal loan at low interest rates. Moreover, a high credit score makes you eligible to be a low-risk borrower, you can get instant approval and quick disbursal of the loan amount. Conversely, if you have a low credit score, try to pay your outstanding debts, credit card bills, and pending EMIs to improve your CIBIL score before applying for a personal loan. Applying with a low credit score will only drive more chances of your application with rejection and further your score might fall.

• Check your eligibility for an instant personal loan: Apart from a good credit score, you also need to fulfill other criteria of a bank and lender such as age, employment, documentation, etc. Meeting these parameters makes the bank or lender sure that you are a responsible borrower, which results in a speedy personal loan evaluation and verification process and instant disbursal of the loan amount. To ensure speedy approval of the loan amount, choose a bank or lender with easy eligibility criteria. You can go through the websites of several banks to gather the knowledge regarding these criteria and can use the personal loan EMI calculator to get a look at your monthly installments to pay every month for the loan amount.

• Keep the necessary documents ready: Once you are sure that you will be able to meet the eligibility criteria, gather the necessary documents. These include documents that verify your identity, income, address, and employment such as your PAN card or Aadhaar card, passport-size photographs, recent bank account statements, and salary slips. Submitting the correct documents within time will make sure that you do not have to waste any of your time in repeating the process or re-applying because of any mistakes and help you get faster approval.

These are some of how you can avail of personal loans in situations of urgency as they can come in handy in such situations because they have a fast approval process with disbursal in a few hours which helps in taking care of urgent situations. You can avail ICICI personal loan   so that you are able to get the loan as quickly as possible at the terms and conditions of your choice and convenience.

Also Read:- Here Are Things To Know About A Personal Loan 

There is a personal loan origination fee that is not known to many people, so let us know about this expense in a little detail. Personal loan origination fees which is likewise known as processing, administrative or underwriting fees are credited by banks and lenders when you avail out a personal loan. They cover everything from processing an application form to verifying the applicant’s various eligibility criteria to covering other costs for the bank’s or lender’s loan operations. Sometimes it’s a fixed charge and other times it’s a certain percentage of your total loan amount which can be between 1% to 6%, and sometimes it can go as high as 8%.

Now let us discuss further about how Origination Fees can be determined? 

1) There are a few factors to determine the applicant origination fee. Your credit score is counted as one of them. If you don’t have a great credit score, lenders or banks may charge a higher origination fee to reduce their risk percentage if the applicant doesn't repay the loan amount. Considering, if you have a credit score of say 800—which is considered very good, the bank or lender might only charge an origination fee of 1% of your total loan amount; whereas someone with a little less credit score of 650 might be charged 5% for the same personal loan amount.

2) Your personal loan amount impacts your origination fee as well. With an increase in your loan size, the origination fee that you pay becomes larger, no matter how much percentage is charged. Your income and other financial debts, like home loan and mortgage payments, could also impact your origination fee. Because these fees depend on a combination of a lot of factors, origination fees vary from different banks and lenders, although some of the banks and lenders charge a flat rate of interest.

3) Next, let us discuss the Personal Loan Origination Fee Costs and some points relating to that. Origination fees usually lie between 1% to 8% of the total amount of loan and can cover a number of other costs, such as application fees, credit check fees and loan processing fees. However, the total origination fee on your personal loan depends on a number of factors such as your credit score and the loan amount.

4) Origination fees also can vary from different banks and lenders; there is no set fee on how much each one of these banks and lenders charges. Because each creditor has a different set of terms and conditions, in the same way each borrower has different needs, the amount you pay may be different from what someone else pays. Likewise, your bank or lender may want you to pay the fee in one of several ways. Usually, these costs are subtracted from your total loan amount or added on to the loan amount left. Another important point is that not every lender charges origination fees. If you don’t have a very good credit score and are not able to qualify for a personal loan at a bank or lender that does not charge origination fees, you may need to opt for a bank or lender who does. It depends on your needs for funds and your credit history. You can get an Instant Personal loan by following all the terms and conditions that banks and lenders ask for.

5) These are some of the important points that you need to keep in check when you avail a personal loan from a bank or lender that charges origination fees from you. You can always check your HDFC personal loan interest rate by checking their website to get a fair idea about the evaluation and sanctioning of your application for personal loan. This makes your loan process very simple and easier as you get to know about the steps before the time only.

Must Read:- PERSONAL LOAN AND THINGS TO DO TO AVAIL PERSONAL LOAN  

Banks and Non-Banking Financial Companies(NBFCs) provide numerous kinds of commercial services, one being lending loans. A loan is classified typically as secured and unsecured. An unsecured loan doesn’t demand an asset for collateral whereas a secured loan does. Therefore, the features of the loan vary because of that asset. In a secured loan, the collateral(asset-gold, property, car, house, etc..,) acts as a surety. So, even if the borrower doesn’t repay the loan amount with interest, they have the right to auction the asset to compensate for the owed money. But, as an unsecured loan needs no collateral, there aren’t many ways to compensate for the loan amount and interest rate financially, so banks and NBFCs take action legally. Therefore know your repayment capability and interest rate affordability before taking out a loan. A personal loan EMI calculator helps you do that conveniently.

What to do when you as a borrower can’t pay off your personal loan?
When you realize that making any more Equated Monthly Installments(EMIs) and repaying the loan amount acquired is difficult, contact your lender immediately. Have a face-to-face discussion with them, on what are your options. No lender likes or wishes to receive a call from a borrower saying they can’t repay the loan, but most banks and NBFCs are willing to help out their debtors. Maybe they can reschedule your loan, maybe they can lower your interest rate and increase the tenure. But there are options present to help you. A loan moratorium is also another choice if your loan default is for the first time. By opting for this scheme, a borrower needn’t pay the interest rate for a maximum of 3 months if they have a consistent repayment record previously. The 3-month interest can be paid with the principal amount or be divided equally to the rest of the monthly installment payments. But, the main factor is banks and financial institutes give you enough time and space to recover and repay. 

It is definitely better than not repaying altogether. If you’re defaulting on the personal loan for the first time, then try consolidating it. By consolidating a personal loan, you avail another loan or debt from a bank or NBFC to pay off this original loan. This way you have time to think and arrange for your funds. Debt consolidation personal loans often have low-interest rates and flexible tenure. Therefore, they have good chances of helping you. Another method to pay off your loan is by auctioning or selling your asset. Or you can even avail a secured loan like a gold loan or property loan to pay off your personal loan debt. Gold loans do not require CIBIL score or income proof, they only need a valid gold article(s) as asset and ID proof to sanction loans. This is another option for repaying.

What happens if you don’t repay your personal loan?
The missing payments and the defaulting of the loan affects your credit report immensely. Thereby affecting your CIBIL score eventually and hindering your chances of availing a loan in the future. A CIBIL score or credit score is extremely necessary to avail loans and especially one like a personal loan(unsecured). Your credit utilization ratio also increases and having a high credit utilization ratio is also an obstacle in availing a loan or debt from a bank or NBFC. There are more chances of suing you for the non-repayment of a personal loan as banks and financial institutes tend to take things to the court and seek legal remedy if and when the borrower defaults incredibly. Therefore, there are repercussions for not repaying the loan and so it is a necessity to pay off the loan on time. ICICI is a well-known bank with multiple branches worldwide. The features of a personal loan in ICICI are extremely affordable and beneficial. ICICI personal loan EMI calculator can be used to calculate the interest rate and know all about the personal loan details.

Read More:- Alternatives for non-payment of personal loan 

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:- Why are Interest Rates high for Personal Loans? 

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, Aadhar card, Passport, Voter ID.
  
  
• Address proof:- Driving license, electricity bill, passport, rent agreement, gas bill, etc.
  
  
• Additional items:- two passport size photograph.

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:- Features that celebrates Gold Loan borrowers 

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.

Read More:- Personal loan vs two wheeler 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:- REPAYMENT OF PERSONAL LOAN