Blog #Personal Loan Interest Rates

A personal loan has been one of the most vital forms of service provided by banking institutions among all the loan types. During this pandemic time in the initial period of the infectious disease, when there were frequent lockdowns, people used nearly 70% of the services in the form of personal and gold loan only. A personal loan is the type of loan where no collateral security will be placed against the bank or the financial institutions. The reliability of the personal loan is very easy, which can be availed from anywhere in which there is less requirement of collateral security them this kind of loan is just a boon.

While availing for a personal loan, few factors need to be focused upon before availing of the loan. These factors will help the loan borrower move through the loan procedure efficiently and smoothly without any hindrance. Going through these kinds of elements and their information beforehand will make it much easier as they will be prepared for those kinds of things. There are different types of loan providers in the market which offer different eligibility criteria for the income with high Personal Loan Interest Rates. This loan requires a monthly salary or income source criteria, which needs to be produced through the documents showing the income. The documents need to be in the form of a salary slip, bank statement for the business's income tax return. The essential requirement of the income source to know by the loan providers is due to the risk of the non-repayment of the loan as there is no security like that of the other types of loans.

The next thing I have come into the picture is the credit score which states the financial repayment pattern and the style of the person who already availed loans in the past. A credit score explains the financial performance of the credit facilities in the past. It is preferable that if a person is having a credit score of above 700, then quickly the low personal loan will be provided from any financial institution. Still, if the thread is below 650, then it is considered that the person should improve the credit score or average short types of loans to make the kids more attractive and then apply for the personal loan.

If we talk about the age limits, there are different age criteria according to the other loan providers in the market. Foreign banks have other age limits, but in most cases, it is saying that the age limit has been kept within the range of 23 to 68 years of age for the salaried people. The Personal Loan EMI Calculator in the official websites will give a better estimation. The age limit is because, in most cases, if the person is below 20 years of age, then either he will be unemployed or be in education. Another means we can say that the person is not financially independent. The upper limit of the ages is that a person does not remain economically independent after that age.

Conclusion -

To conclude, you can say that different types of factors depend on loan availability, which varies from person to person. If a person is well experienced for an extended period, then the job is considered a stable one for which the bank or the NBFC find it confident for providing such types of loans compared to those who are very new to the job. It is also checked that there is no existing loan or the other kinds of liabilities are there or not according to the present situation can continue the loan with the other loans.

Read More:- What should you know before taking a Personal Loan? 

What is a Gold Loan?

A Gold Loan is a secured form of Loan which is secured by anything of value you possess, known as collateral. Your gold valuables or other expensive items, like jeweler, are common instances of collateral. A Gold Loan disbursal process is quite simple. Firstly, eligibility criteria have to be checked by the borrower before availing of a loan. An Application has to be submitted in the nearest branch of HDFC Bank or via the official website. The next step is Document verification and Purity Test of Gold, where one has to submit Identity Proof and Residence proof and the gold, which has to keep the mortgage. The Purity test of Gold is conducted inside bank premises at a scheduled time by Bank authorities. Once all these processes are complete, the loan gets approved in a short while. An Approval letter is given to the borrower containing the details of the lending bank, gold loan scheme, total loan amount approved, Interest rates, processing fee, prepayment charges, foreclosure charges, tenure period, repayment options, etc.

 Benefits of Gold Loan :

• A Gold Loan up to Rs1 Crore can be financed.
  
  
• A Gold loan can get disbursed within a few hours after applying.
  
  
• Loan tenure of up to 24 months can be given to the borrower.
  
  
• Less paperwork involved in Loan disbursal.
  
  
• Gold valuables have to be kept as collateral for availing this loan.
  
  
• No guarantor is required to avail of this loan as collateral is involved.
  
  
• Interest rates on Gold Loan are less as compared to other loans.
  
  

What is a Personal Loan?

Personal Loans are a form of unsecured loan which is obtained without the use of collateral. The lender risks a higher amount of risk because the loan is backed by nothing of value. An individual can avail of a Personal Loan for satisfying one needs which can be for a wedding, higher education, travel, medical emergencies, financial miseries. Personal loan interest rates are higher than other loans and can range from 16% to 24%. The Personal loan application can be submitted online through the bank’s website or offline by visiting the bank in person. Eligibility criteria are a set of rules decided by the lending bank which the borrower has to abide by. After fulfilling all the necessary eligibility criteria, an application for a loan has to be submitted. Document verification is an essential step in the Loan Approval Process. An identity proof, residence proof and valid Income proof have to be submitted by the borrower. The Bank representatives thoroughly examine these documents. Income proof is asked to prove one’s ability to repay the debt as no collateral is involved there. These loans come up with a more extended tenure period. A CIBIL Score of above 750 is requested, and a good credit score makes the loan disbursal process quicker. Self-employed individuals or salaried people can avail of this loan by showing proof of salary slips or business proof of previous years. A bank representative contacts you once the loan gets approved, and an approval letter is handed to the borrower, which contains all the required details of the lending bank and loan details.

Benefits of Personal Loan :

• A Personal loan of up to Rs75 lakh can be financed.
  
  
• Personal Loans can get disbursed within a day after applying.
  
  
• Loan tenure of up to 60 months can be given to the borrower.
  
  
• Less Paperwork involved in Loan disbursal.
  
  
• There is no need for collateral.
  
  
• A guarantor is required to avail of this loan.
  
  
• Attractive Interest rates starting from 9.90% can be availed depending on the loan scheme.
  
  

Therefore, HDFC personal loan and Gold Loan come up with their advantages and simple application process. Personal loans are the best-suited option in emergencies, whereas the higher loan amount with incurred interest rates should be considered. Gold Loans have low-interest rates, but the gold can get auctioned if you fail to repay.

Also Read:- How do your Aadhaar card and PAN card help you to get a Personal Loan?