Blog #Personal Loan

Broadly, loans are classified as secured and unsecured based on their requirement for an asset(physical or liquid) as collateral. Secured loans like gold loans, home loans, car loans, business loans, property loans are some of the secured loans that demand collateral from the customers, whereas unsecured loans like a personal loan do not demand an asset to be pledged. These loans are provided by all banks and Non-Banking Financial Companies(NBFCs) of the nation every day, all year round. Digital and the convention face to face methods are two of the options a customer can choose to apply. In the digital mode, the applicant doesn’t need to personally visit the bank or NBFC and complete the entire process online. However, in offline mode, the applicant has to personally visit the bank or financial institute to take out the loan and receive the loan amount. Both modes have proven to be effective and efficient time and again.  

Secured loans require collateral pledging, which means an asset of the applicant is temporarily handed over to the finance provider till the applicant repays the entire loan amount with interest by the end of the tenure. And the bank or financial company has the right to auction the asset if the borrower doesn’t pay off the owed money in full. However, an unsecured loan doesn’t require collateral and is sanctioned based only on documents. At times when an applicant doesn’t want to pledge an asset as collateral or doesn’t own an asset to pledge as collateral, a personal loan suits their financial needs proficiently. Besides, a personal loan has numerous advantages that make them more appealing. A personal loan can be opted for any financial requirement. Be it medical emergencies, construction, business expansion, scientific research, car purchase, appliance or furniture purchase, weddings, debt consolidation, or location change.  

Eligibility criteria of a Personal Loan 

The applicant’s minimum age to avail a personal loan should be 18 years, and the maximum age must be 65 years. Although a few banks and NBFCs demand a minimum age of 21 years. To avail an ICICI personal loan, the minimum age requirement is 21 years. The applicant has to be a working professional with a minimum of two years of job experience. The minimum monthly salary required to benefit from a personal loan is Rs 15 thousand. Salaried employees, self-employed employed and co-applicants are eligible candidates to opt for a personal loan.

The documentation requirement of Personal Loan

1) ID proof: A gazetted document verifying the personal identification of the applicants is required as ID proof. It could be a voter ID, aadhar card, PAN card, driving license, passport or any other authorised document.

2) Address proof: A gazetted document verifying the official place of residence of the personal applicant is required as address proof. The address proof can be either of the following: voter ID, Aadhar card, PAN card, driving license, passport.

3) Income proof: An authorised document verifying the monthly or annual income of the applicant. ITR, form 16 or salary slips can be submitted for income proof to the banks and financial institutes. 

4) Employment proof:  An authenticated document verifying the applicant as an employee or employer of the company or organisation is demanded as employment proof. Business proof or employee id of the company is validated employment proof.

5) Bank statement: The bank account statement of the applicant for the last 3 to 6 months is required.

Personal loan features

The loan amount of a personal loan varies from Rs 25 thousand to Rs 40 lakh, and the interest rate of a personal loan varies from 9% per annum to 25% per annum. The loan term of a personal loan is a minimum of 12 months and a maximum of 60 months. By searching for EMI calculator personal loan on google, the interest rates and loan details of a personal loan are known easily online. The processing fee of a personal loan is around 2.5% of the loan amount, and the prepayment fee goes as high as 6% of the outstanding loan amount.    

Also Read:- WHAT IS THE REASON FOR DEMANDING CREDIT SCORE IN PERSONAL LOAN APPROVAL 

With personal loans becoming popular, new lenders are coming out every day. This has uplifted the bar of competition for the lenders and they are coming up with unbelievable offers every day. This has made it very essential to know what you should look into a lender and their offer before availing a loan from them.

Following are the points to evaluate to know which lender is best for you :

1) Interest Rates: As discussed earlier, the increased competition has made lenders offer at competitive rates. A lot of lenders offer at low-interest rates to attract more customers. Therefore it's very important to compare different interest rates offered by banks and non-banking financial institutions. Comparing would allow you to get the most affordable deal for you. Use a personal loan interest calculator to do accurate and timely calculations.

2) Loan amount: Different lenders have different ceilings for loan amounts according to your income level. Whenever you find the perfect interest rate for you, check if that lender provides your required amount on your income level or not. Call on their helpline by going to their website and inquire about everything.

3) Income eligibility: The minimum income level required is different by different banks and NBFCs. Some have 15,000 as the minimum income requirement while others have Rs. 25,000 as the minimum requirement of Income. It varies greatly from one lender to another. Therefore before applying, check for this so you don't apply at a place where your application is ultimately going to be rejected due to a policy.

4) Read terms and conditions: This must be done even before applying, not after everything gets approved and you are about to sign. When you like a loan scheme, ask the representative to show you the terms and conditions and read them thoroughly. There might be some technical jargon / terms. If you don't understand them then ask for help from the representative who is assisting you or some professional. 

5) Look for processing charges: Many lenders charge processing fees and it could be as high as 5 percent or even more. Even though it is a one time charge but when you include it in the expenses you would be paying, it makes up a considerable amount. Hence, check your lenders terms related to processing charges.

6) Look for prepayment changes: Most of the lenders charge you for prepayment. If you don't know already what prepayment means, it means to pay a portion of your outstanding amount before the time to reduce principal, which then reduces the interest. Lenders can charge you anywhere between 2 - 6 per cent for prepayment. Look for the one that doesn't charge a very high prepayment fee so in case you want to prepay later, you don't have to pay heavy charges in it. This is also called partial prepayment.

7) Look for foreclosure charges: Foreclosure means closing beforehand, that is, paying back all the loan amount before the due date. This saves a lot of interest payments for the borrower and reduces lenders profit since the interest payments are reduced. Hence, it's important to see how much your lender charges on foreclosure. Foreclosure is also called full prepayment. This is why people mostly get confused between the two. It only makes sense to prepay or foreclose if you are doing it well in advance, that is, in the earlier stages of your loan.

The first year is usually the lock-in period therefore you won't usually be able to prepay in the first period. The first year usually takes away 60 % of your obligation therefore it's very important to prepay very early as soon as the lock-in period ends.

Check for different lender's interest rates, prepayment fees, processing fees etc. before you go for any loan. Check Hdfc personal loan interest here.

Try maintaining a good relationship with your lender. Timely pay back the loan if you have taken it earlier. Deposit cash from time to time in your bank. Don't enter into a tiff with any employee.

Read More:- Choosing The Right Lender In Personal Loan 

How To Choose A Right Money Lender For A Personal Loan?

If you are a person who is looking for some ways to improve the quality of your life, you can apply for a personal loan. A personal loan can help you in a lot of ways. You can pay for a better furnished house, you can plan for a vacation, and you can also pay for higher education with the help of a personal loan. You can also apply for an instant personal loan and get the amount of loan within a few hours or even within a few minutes, when in need of some money urgently or when in a financial emergency. The amount of the EMIs can be checked beforehand with an EMI calculator for personal loan.

Following are some of the pointers that a person can use to choose a better and a right money lender-

1) Compare the interest rates of a personal loan- Before the application process is started, it is really important that you look for an ideal or for a right money lender and the right personal loan which will fit your needs. There are different banks and money lenders and non-banking finance companies which charge different rates of interest. Also, with every loan application, the credit score of a person takes a certain hit. So, the process of loan application should be done at last, after all the checking and verification on the side of the borrower. You can compare different loans and their features and interest rates and you can contact different money lenders and seek all the important information. TATA Capital personal loan offers different interest rates to different customers.

2) Check the amount of loan- Next step is to check the amount of loan that you need. It really depends on the needs of the borrower that how much money in total is needed. After deciding the amount of loan, you should choose a money lender who offers a substantial amount of loan that will cover all of your expenses. Also, you can choose a money lender who offers more flexibility. In some of the personal loans, you can pay for the interest rates every month and then, can pay for the amount of loan at the end of the tenure of repayment. These types of loans are ideal for a home renovation as during the renovation, you will be paying different service providers so, you will not get disturbed during that period and after the work is done, you can repay the principal amount at the end of the tenure in one single payment.

3) Read the fine print- Every bank and money lender will provide legal documents to the borrower which will include all the terms and conditions of the personal loan that they offer. So, a person must ensure that he has read the fine print thoroughly and does not have any confusion regarding that. He must ensure that he is aware of all the terms and conditions. Also, if the borrower is facing any difficulty in understanding something or is having any doubt, then he can contact the respective bank or the money lender for the clarification. A fine print is legally binding, so a borrower has to make sure that he is comfortable with each and everything that is mentioned in the document.

4) Take note of a processing fee- The money lenders or the banks mainly charge a processing fee of around 2-3% of the amount of loan, excluding the GST. The amount of the processing fee is deducted from the amount of the loan. A borrower should also check all the other charges that are involved in a personal loan beforehand.

5) Check the prepayment charges and the penalties- It is prudent to use any income to make the prepayments towards the personal loan. This can help a person to lower the rate of interest but some of the banks or money lenders have some strict rules regarding the process of prepayment and some may charge prepayment penalty or fee. Therefore, a borrower must look for these small details before applying for a loan to a money lender.

Also Read:- Did Covid Affect Really Personal Loans? 

A personal loan that can be acquired at any bank or NBFCs is an unsecured loan. The entire loan process of a personal loan is very quick and easy. You can easily get funds through this loan option. However, a lot of individuals are confused and often ask if they can apply for two or more personal loan options at the same time. So to answer this question today we're going to state all the factors, possibilities and chances of getting multiple personal loans and have listed some of the common factors below:

1) The amount has to be repaid:- Customers have to repay the loan amount they've borrowed. Banks don't give customers loans for free. They have to repay the amount along with the interest rate. So you'll have to repay both personal loans along with their interest rate. 

2) Credit score will be impacted:- The credit bureaus keep complete track of every loan, debt and credit you take. So the fact that you've applied for a personal loan will be recorded along with its repayment. And taking another personal loan will impact your credit score by a few points. And if you miss even a single instalment of both loan options, then your credit score will be heavily affected.

3) You may be charged with a high-interest rate:- If your credit score is low, then banks will either reject your application or they will provide the facility of a personal loan at a high interest rate. 

4) Your net worth should be positive: Banks will only approve your application if you have a decent income to repay the loan amount you've borrowed. So if you're planning to apply for another personal loan then you should be prepared to repay both instalments on time. 

5) You can be stuck in a vicious debt cycle:- If you ever face a situation where you don't have funds. Then you'll be stuck in a debt cycle because you'll have to repay the loan amount of both personal loans. 

6) More documentation will be needed:- If you've decided to apply for more than one personal loan, then banks will demand more documentation. No one wants a risky customer, so to confirm things banks will ask for additional documents. So you should have a stable job with a constant source of income, banks will check whether or not you can repay the loan options according to your repayment capacity. 

7) You can't pay more than 50% of your income as EMI:- Before applying for a second personal loan, you can use some online tools like instant personal loan online to calculate your expenses. Because you can't choose 50% of income as EMI for one loan. As of now, you'll have to pay both loans. So you can't exhaust 50% of your monthly income for one loan option. 

Advantages of personal loan

Applying for a personal loan is the best option if you're looking to get funds for immediate purposes. There are a number of advantages, benefits and services that can be availed through applying for this loan option. 

We've mentioned some of the most common advantages of a personal loan below: 

1) Hassle-free processing:- The entire application process of a personal loan is very quick and easy. You can easily get your loan processed within a few days. The application is usually verified within 2 to 5 business days. However, a lot of banks will approve your application instantly if you have a high/decent credit score. 

2) Unsecured:-  HDFC Personal Loan is an unsecured loan, so you don't have to pledge any type of asset/gold/property to get funds from this loan. Banks will easily disburse funds even if you don't have any assets under your name. 

3) Flexibility:- Customers have the complete flexibility to use the funds given through personal loans freely. So they can use the funds for various purposes like weddings, family vacation, debt consolidation, child's education fee, medical bills, miscellaneous expenses, etc. 

4) Documentation:- The entire documentation process of a personal loan is very quick and easy. You just have to submit the application form and some basic KYC documents to get your application verified.

Must Read:- Personal Loan no-cost EMI option 

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 

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

 The two loan options that we'll compare are: 

1. Personal Loan.
   
   
2. Loan Against Property.

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

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

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

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

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

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

We have mentioned some of the common advantages below: 

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

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

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

Advantages of LAP

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

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

Must Read:- Six Things To Consider Before Opting For A Personal Loan Over Other Loans 

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

1)  Not checking your credit score 

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

2) Applying for too many personal loans

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

3) Settling for less

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

4) Not reading the fine print

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

5) Opting for a longer tenure

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

6) Taking a loan without any purpose

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

7) Not checking eligibility criteria

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

Conclusion-

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

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

Read More:- Improving CIBIL Score for Personal Loans 

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

What is a Personal Loan? 

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

Some of the common benefits are: 

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

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

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

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

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

Essential factors of Personal Loan

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

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

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

The personal loan application process

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

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

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

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

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

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

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

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

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

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

Must Read:- Which bank should I choose to apply for a personal loan? 

Personal loans are considered one of the best ways to fulfil the need for funds for any purpose, whether financing your children’s education or planning a holiday with your family. Personal loans can provide you with a solution to everything without much tension and stress. Personal loans are considered best to overcome any finance-related problems. Everybody is well aware of how to get a personal loan. Still, not everyone knows how to avail of a personal loan at low rates of interest as the rate of interest is the only factor that can change your amount of personal loan, the tenure of the loan etc., substantially.

So, let us learn some ways by which one can avail of a personal loan at low-interest rates as below:

• Compare lenders to get the best offer: A person can successfully avail of a personal loan at low-interest rates if he takes the loan by conducting prior research. And good research can be done only if you compare the personal loan lenders in the market to shortlist a loan opportunity with a reasonable rate of interest and convincing features. One should take their time to conduct this research to get the lender with the terms and conditions that suit you best. 
• Qualify based on your professional credentials: If a person has a good job and earns a hefty salary, he has a better chance of getting a personal loan. This puts the borrower in a better position to negotiate the rate of interest for the loan. In addition, if the company in which the borrower is working has a good name, then that makes it even better for you to convince the lender to cut the rate of interest since your company’s good name can give him the surety that you will somehow manage the amount to repay the loan and monthly instalments.
• Maintain a good credit score: Your credit score indicates your record of handling your credit. It indicates how you tackle these credits. A good credit score has to be around 700 or 750, making you an appropriate candidate for availing of a personal loan. And it has always been, the higher the credit score, the better your chances are to get a personal loan. This is because the loan amount, interest rate, and repayment terms are all decided based on your Personal Loan Eligibility criteria and credit score. And if you have a good credit score, it becomes easier for you to negotiate the terms of the interest rate for the personal loan.
• Look for seasonal offers: Most lenders and banks notify their customers about seasonal offers through mails and SMS. So one should keep a check on these offers to get the most favorable deals out of them. These offers are presented for a limited period, so they should be grabbed at the earliest whenever one finds a suitable one. Moreover, most of these discounts come around festive seasons so that people can keep an eye on such emails and messages at that time.

These are some critical points where you can try and get a low interest rate on your loan by keeping these points in mind. You should always try to maintain a good credit score and employment status to get a low-interest rate on your loan. Not only it will get you personal loans easily but also keep your credit scores appropriate for future needs.

Several banks offer you a personal loan, and as mentioned above, one can always check, evaluate and compare these various banks and financial institutions before concluding choosing one of these. One can also check their monthly instalments by the SBI Personal loan calculator to get an idea about the monthly reimbursements and choose the most suitable rate of interest that is convenient for them to repay. Other factors have a vital role in deciding the interest rate, and one should study these factors to avoid any sort of casualty.

A personal loan can be a great financial help in the time of financial crisis. It is an unsecured loan and it does not require any collateral against the loan taken from banks and non-banking financing companies(NBFCs). The application process is quite simple and requires minimal documentation. For more information regarding personal loans, one can check the website or app of the financing companies. An applicant should be really careful while availing loan. One should keep in mind a few points before availing loan.

BELOW ARE LISTED 8 POINTS TO HELP YOU WITH YOUR DEBT BURDEN :- 

Make A List Of Your Debts And Assets:-

One must gather the information of all the debts taken from the banks and non-banking financing companies(NBFCs). Calculate the monthly debt which is to be given to the bank. One must also keep a close track of the income. Distribution of income for various purposes is important. Try to save money by avoiding unwanted purchases. Always save money to pay your debts. Try paying all your debts timely to avoid future losses. Always calculate the minimum monthly payment accordingly. Pay the EMIs to the bank timely as paying late can reduce your credit score. Making a list of debts will make your work easier.

Follow A Strict Budget :-

Following a strict budget helps you save a lot of money. Calculate the monthly spendings. Calculate the monthly spending on groceries, medicines, electricity bills, and many more things related to daily needs. Avoid buying anything unnecessary. Save money to clear all your monthly debts. If possible save a little more money and prepay your loan. Prepayment of a loan can help the applicant decrease the burden.

Don't Over Borrow:-

An applicant is always recommended to take a loan as per the need. Try not to take unnecessary loans from banks and non-banking financing companies(NBFCs). Try not to over borrower. Make a proper list of all our needs and borrow from the bank accordingly. An applicant is recommended to take a loan seeing the financial flow. Overborrowing can increase the debt leading to a bad credit score. Too many of loans like personal loan or credit cards can be fatal.

Make A Debt Repayment Strategy:-

Make a step-by-step repayment strategy. First list all your debts taken in one place and then calculate the entire amount to be paid to the bank or non-banking financing companies(NBFCs). Making a repayment strategy can make the work easier for the applicant. Following a proper repayment strategy is important for the fast repayment of the loan.

Consolidate Debt:-

Debt consolidation is a smart move. Try to consolidate the various loans taken from the banks and non-banking financing companies(NBFCs) into one single loan. Data consolidation can help you decrease the internet rate on your loans taken.

Pay Your Credit Card Dues:-

Always try to pay all your dues timely. Paying credit card dues timely is important. The interest rate on credit card dues is higher so clearing all the dues timely is important. Paying your credit card bills timely can also help you increase your credit score which can help you in the future for availing of loans.

Increase Repayment With A Rise In Income:-

Try to increase your repayment with the rise in income as this can help in fast repayment of the loan and will also decrease the unwanted burden. This is a very easy way to pay your loans faster. Make sure to save money from your income and prepay your loan. Fast repayment of loans can be really helpful in maintaining a good credit score.

Drop Expensive Habits:-

Try to avoid buying expensive things until the repayment of the loan is done. Reduce your subscription-based expenses. Cutting down unwanted expenses can help you in saving a lot of money. Make it a priority to repay your loan timely. Make sure to cut your expensive habits until the repayment of the loan is done. An applicant can get a personal loan from various banks and non-banking financing companies(NBFCs). PNB personal loan can be easily applied online as well as offline. The bank is recommended to get a personal loan. An applicant can avail of various schemes on a personal loan by applying at the bank. 

Read More:- Why Is My Loan Not Getting Approval? 

A personal loan is an unsecured loan that the world’s population has been making use of for more than half a century. And the need for it is only growing like five or even two decades ago, people are no longer required to travel miles and negotiate terms with a banker to sanction money. With the tremendous growth of technology and the ever-present 4G internet, you can avail of this loan online with no trouble at all. The terms and conditions with the factors and eligibility criteria are provided on the official website of the bank or NBFC you want to avail loan on. Online processing of a personal loan 

• Open the official website of the bank or NBFC and select a personal loan application online from the menu bar.
• The option leads you to an application page that asks for your name, age, phone number, address, Pincode, mail id with other basic details.
• The second page asks for your monthly income, banking details, CIBIL score, loan amount required, tenure period, and using that the page displays your monthly interest amount 
• After that the screen for documents is presented, where the basic documents of you are asked like ID proof, residence proof(PAN card, Voter ID, aadhar card, passport, driving license(any one can be submitted)), income proof(ITR, form 16, salary slips), employment proof(employee id). Bank statement(account book). You have to scan and upload all the original documents properly.
• After that submit your application.
• Upon receiving the application, the bank verifies all your credential and approves if it has complete trust and satisfaction.
• After the approval, the finance sends you a digital document detailing the loan and specifying the additional charges like preclosure fee, processing charge, and taxes and requests for your digital signature.
• After the signing, the money is then disbursed within several hours or at the most in 2 days.

Axis Bank personal loan details 

Axis bank is a reputed bank that has branches all around the world with millions of customers availing of personal loans regularly. The bank is a private company with high-end people in the business as account holders. The ratings of the bank are impeccable and the loan offers are affordable.

Eligibility criteria

• The age requirement to avail of this loan is a minimum of 21 years with a maximum age of 60 at the time of maturity of the personal loan.
• The applicant must be a salaried professional (private or public sector).
• The minimum salary of the applicant must be Rs15,000per month.

Axis Bank loaning details

Axis Bank offers personal loan both online and offline services. The loan amount the bank offers for a personal loan is a minimum of Rs 50,000 up to Rs 15 lakh. The tenure of the loan lies in the range of 1 year to 5 years with minimal documentation. The interest rate of the personal loan varies from 10.49% per annum to 21% per. The bank also charges various other taxes and other charges. The processing fee is one among them, that is charged for the processing and approval of the application. The fee in Axis Bank is Rs 500 plus GST. Preclosure or foreclosure is another such charge that is incurred if the applicant closes the loan before the end of tenure. The charge is 5% for 0 to 12 months, 4% for the second year, 3% for the third year, and 2% for the last two years.

Conclusion  

The personal loan although easy to avail still needs the loan to be paid back by the applicant. The CIBIL score of the applicant depends gravely on the monthly instalment of the loan, if the bank or NBFC sees regular on-time payments the credit score increases else the credit score decreases hindering the possibility of availing of loans in the future. For any further information, the contact details of the bank are on the official website.    

Must Read:- How is Credit Outflow boosted from a Personal Loan? 

WHAT IS A PERSONAL LOAN?

A personal loan is used for personal purposes or to fulfill someone's personal desires. For instance, it can be used if you are planning for a vacation, or if you want to plan a big wedding or even, if you are planning to buy a car. It is only upto you why you are taking that loan. Some of the banks do ask you the purpose of availing a personal loan while others don't.In the whole process of availing for a personal loan, you need to apply for the same and then, provide all the necessary documents to the bank. After the successful verification of your documents, the loan will be finally transferred to your bank account. After getting the loan, you can use the money for whatever purpose you want, and after that, you have to repay the loan to the bank or to the money lender with an interest rate on it. The money can be paid back in the form of equated monthly installments (EMIs). 

Different banks offer different interest rates on different loans. So, if you want to apply for a personal loan or any other loan, you should compare and contrast different offers by different banks, the features of a loan, benefits, interest rates, extra charges and at the end, decide the one which you feel is the most comfortable. The amount of money can be calculated with the help o a personal loan EMI calculator. You just need to put the values of the amount of loan, rate of interest, tenure of repayment and then, you will be able to get the amount of the EMI that you will need to pay every month. Indiabulls personal loan provides an easy procedure to avail for a personal loan.

THINGS YOU NEED TO DO IF YOU WANT TO AVAIL A PERSONAL LOAN: - 

1. Check Your Credit Score:- The credit score reflects your creditworthiness.  It tells how you have managed your credits in the past. An ideal credit score is around 700, and it makes a candidate good for a personal loan. The higher your credit score is, the better it will be for you. The loan amount, interest rates, repayment terms are all decided based on your credit score.
2. Compare Lenders To Get The Best Offer:- You need to research all the important aspects before applying for a loan, and even a little research goes a long way. You can compare the different personal loans in the market or present them online on the banks’ websites and compare the different interest rates. By this, you can choose the loan which has the best interest rate and features. It may take some time, but you will surely make the right choice of loan. 
3. Check Your Eligibility:- As mentioned earlier, good research will help you in the long run. Once you have chosen the loan, you have to check the eligibility criteria. If you are eligible and are fulfilling the criteria, then you can apply for your loan.
4. Look For Seasonal Offers:- The money lenders and the banks notify their customers about the special offers through emails and SMS. You have to keep a watch for these offers if you plan to take a personal loan, and you can get it more affordable. These offers help you as they allow you to get limited period discounts on the interest rates.
5. Qualify Based On Your Professional Credentials:- If you are a person who works for a reputed public or private sector or draws a high salary, you are a stable candidate in the eyes of the creditor. You can thus use your professional credentials as your advantage to negotiate a lower interest rate. If your company’s reputation is good or the importance of the company in which you are working, it can help you get a loan with a lower interest rate. This is because the lender will be assured that you have the financial means to make the monthly EMIs.

Also read this: What To Choose- Personal Loan Or Loan Against Credit Card