Blog #Personal Loan

Personal Loan might be a good alternative if you need cash for a home improvement project or other considerable cost and can afford repayment. Most personal loans are unsecured (lenders do not require collateral) and have attractive interest rates and no hidden fees.

A Credit Score typically ranges from 300 to 850, which is devised on the basis of one’s income, repayment capability, past transactions or debt obligations. The five factors include payment history, the amount owed by an individual, length of credit history, credit mix and information on new credit. 

An individual can opt for two types of credit accounts as Installment credit or revolving credit. Instalment credit is a type where a fixed amount of debt is availed and has to repaid monthly over fixed instalments. Revolving credit is a type of credit where primarily credit cards are involved. One can spend an amount up to the credit limit, and particular repayments have to be done on the expenditure of the credit. Revolving credit keeps fluctuating over the period as they don’t have a fixed term. 

What Does Impact Having Multiple Accounts Have on My Credit Score?

One of the most popular elements used to compute credit scores is credit mix or the diversity of your credit accounts. It is also one of the most commonly neglected by customers. Maintaining many sorts of credit accounts, such as a mortgage, personal loan, and credit card, demonstrate to lenders that you can manage many kinds of debt simultaneously. It also allows them to gain a better picture of your finances and capacity to repay loans.

While having a less broad credit portfolio will not always result in a worse credit score, the more forms of credit you have as long as you make on-time payments the better. Credit mix accounts for 10% of one’s Credit Score and may be a deciding factor in achieving a high score.

What Can Affect Your Credit Score? 

Some features can vastly affect one’s credit score either positively or negatively. The following factors include missed repayments, too much utilization of credit, account defaults, too many credit requests. Missed repayments Payment of history towards repayments has the most impact on the Credit Score. Even 30 days late repayment can have a negative effect. 

Too much utilization of Credit Too much utilization can result in a red flag on your credit report. Having a flag on your credit report is a sign of adversity. The average total amount of revolving credit by total credit limits is calculated as Credit utilization. 30% of the Credit score depends on this. Account defaults. The information about foreclosure, bankruptcy, settled accounts, repossession, or charge offs can negatively impact your credit report. This can have an ever lasting effect on one’s credit report. Too many credit requests When availing of a loan, a credit inquiry, also called a hard enquiry, is made on one’s credit report by the lenders. These inquiries details are reflected on one’s credit score and can stay up to two to five years and can also slightly bring your score down. Lenders always review the number of hard enquiry made on your report, and too many requests at the same time will make a bad impression of your eagerness to obtain a loan. Too many enquiries in a short period of time may indicate that you are in financial distress or that you are being rejected for new credit.

Why are personal loans more beneficial? 

An India Bulls Personal Loan may be appropriate for you if you meet the following parameters :-

1.) You have a good credit score, which will assist you in qualifying for a cheap interest rate.

2.) Your budget allows for a new monthly payment.

3.) If you wish to repay several high-interest loans via debt consolidation.

4.) Your debt-to-income (DTI) ratio is less than 36%.

5.) You will not be eligible for a credit card with a 0% APR.

Thus a Personal loan is a very profitable option to obtain in minimal time with less documentation. 

Also read this: Why eligibility is important in obtaining a Personal Loan? 

What is a personal loan? 

A personal loan is an unsecured loan that can be used for short or medium-term fund requirements. You can use the amount you get from a personal loan for various purposes like wedding, medical expenses, child's tuition fee, plan a vacation, debt consolidation or miscellaneous expenses. 

You can easily apply for a personal loan at a bank or NBFC (Non-Banking Financial Companies) in India. This increases the risk chance that you will face in the near future. So it's advisable to consider all the factors that affect the personal loan first and then make any decision regarding it. 

Factors to consider while applying for a ideal personal loan:

Credit Score:- 

It is a number between 300-900 that determines your creditworthiness. The higher the number is, the more creditworthy you are. The most accepted credit score is 750 or above. So it's essential to maintain your credit score. If your credit score is high, then your personal loan application will be quickly approved. But if your credit score is low, then a lot of banks will reject your application. However, some banks allow an individual with a low credit score to apply for a personal loan, but you'll have to pay a high interest rate on monthly EMIs. 

Loan Amount:- 

Deciding a loan amount is the most basic requirement for a personal loan. You'll have to decide the loan amount that you need. A lot of banks (like Dena bank personal loan and Canara Bank) do offer more money than required. So don't fall into that trap and only borrow the money that is needed by you. Because you'll have to repay that amount along with the personal loan interest rate, so it's easier to choose a loan amount that will be repaid in no time. However, banks allow you to take loan amounts according to your income. So if your income is low, you won't be able to apply for a high loan amount.

Repayment:- 

Customers have the flexibility to choose the repayment tenure and structure according to their income. Banks offer a lot of repayment structures so that you can pay your loan amount along with the interest rate within the loan tenure. However, it is advisable first to calculate all the expenses and then deduct them with your income to choose your EMI amount. With the help of the EMI amount, you can select a repayment structure that is best for you. It is ideal for keeping your loan tenure as short as possible because you might end up paying more money as interest. 

Personal loan interest rate:- 

The interest rate usually differs from one bank to another. So different banks have different interest rates for various loans. Interest rate is the primary source of profit for banks. It's the extra amount they take to give you money for the loan. So it's essential to choose a credible bank that provides a low-interest rate. The interest rates on Personal Loan usually varies between 8%-18% per annum. So it's better to compare all the choices and then choose the one that provides the lowest interest rate.

 Eligibility Criteria:- 

The eligibility criteria also differ from one bank to another. So it's essential to check whether or not you fit into the bank's eligibility criteria perfectly. There are online tools like 'eligibility criteria calculator' that are provided on each bank's website. You can use that tool to check whether or not you're eligible to apply for a personal loan at your bank. 

Conclusion:-

It is crucial to choose all the options available and then choose the best one for you. So it would be best if you chose all the banks and then select the one that has more credibility and provides a low interest rate. Many banks offer various unique facilities, so do some research and then choose the right lender for you. 

Also read this: Loan Against Property vs. Personal Loan 

Is your cash flow sinking? need help? personal loans are available, but with give comes take, as the interest rates are surging and the economic prices are flooding, you are finally only adding interest on interests and all that seems to do is dent your account irreparably which is a bad place for anyone to be. A personal loan calculator is available on most banks and NBFCs official websites to give you a crystal clear idea of what you are dealing]g with. Personal loans are beneficiary with cross lines and limits that if crossed might do you a great job of hindering your future possibilities of availing a loan. But, it can’t be the only way to lend you resources right, without maxing out your account? And that’s is why you have more than one option to fend for in a highly legit way. Here are a few other options to swell your account.

Loan against property: 

(LAP) Property loans are available in all banks and Non-Banking Financial Institutes(NBFC) where you can place your property as collateral and receive about 80% of the property’s value, as the rate increases the value of your property floods. The property can be land or home.

Loan against Public: 

Provident Funds(PPF): With very minimum documents and without wreaking your PPF agreement an applicant can avail a loan on this for a maximum tenure of 2 years and can avail another if they are in the period between 3years-5years if and only if the loan pays the first loan on full.

Loan against Fixed deposit: 

Customers who have fixed deposits in the bank avail  this loan where the bank allows the customer to take 90% of the maturity amount as principal amount, however, to avail this loan the customer must visit the bank in person.

Loan against Gold: 

Gold loan or loan against gold is a type of loan where the gold articles act as collateral to the principal amount. Few banks and NBFCs don’t accept gold coins or bars but other than that all kinds of ornaments are permitted and considerably has a lower interest rate. The bank or the NBFC has the right to auction the gold article if the consumer refuses to pay the monthly instalments on time or doesn’t pay the principal.

Loan against insurance policies: 

Insurance amount can be used as collateral to avail this loan. Banks and financial institutes provide up to 90% of the insurance amount and have low-interest rates. This loan can b paid off at any time during the insurance time and if not paid the banks and NBFCs automatically detect the due money.

Loan against Employee Provident Fund:  

The maximum loan tenure is 24 months and you must’ve had the Employee Provident Fund(EPF) for a minimum of 3 years. You can avail up to  90% of the fund.

Loan against mutual funds: 

A loan on mutual funds can be availed after making an agreement with the lender meaning you should mortgage your unit. A margin is the  principal a bank sanctions on the mutual funds which are always less than the market value of the mutual fund.

Loan on shares:

Loans can be availed on the shares you invest in a business or a trust or society etc.., only if the company has approved securities and each bank has its own list of the eligible securities. The principal amount depends on the security and the value of the share. But, in general, the granted amount is much less than many other loans.

Conclusion:

Indian overseas bank personal loan is a profitable loan that has affordable interest rates and flexible tenure in addition to all the above-mentioned loans. However, any loan availed should be used wisely and paid shrewdly without dues on the given date.

Also read this: Personal Loan for Marriage 

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

This type of loan mainly depends on the following factors -

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

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

Conclusion -

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

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

With most banks offering “personal loan apply online” features, you can avail of a personal loan from the comfort of your homes. Personal loans are unsecured loans that are easier to obtain because they need less paperwork and do not require a guarantee or guarantor. Some of the most common reasons for taking out a personal loan are repaying old debts, weddings or social gatherings, medical emergencies, clearing credit card bills, paying for holidays and so on. So, whatever your reason for looking for a personal loan online.

Here are some pointers to help you find the right bank for you:-

1) Compare interest rates offered by various banks: Perhaps a bank approaches you with an offer of "just 14% per annum" for a personal loan. Or you go to the bank where you have your savings account and discover that the interest rate is "just 16%". Regardless of how appealing the bank's offer seems to you, researching the personal loan terms of various banks and comparing interest rates is a vital move before deciding which bank to take a loan from. There are many ways to do this: you can do your research by visiting the websites of various banks and determining their interest rates, or you can see financial websites, which will provide you with all of the necessary details based on the criteria you enter.

2) Compare charges the bank levies: Interest rates are not the only things you need to compare when choosing a personal loan. You need to look at the various fees charged by banks while researching loans. The fees generally associated with a personal loan are processing charges, late payment charges, cheque bouncing charges, charges for loan cancellation before term and service tax for each service provided by the bank. The most important is the processing fee, which usually ranges from 1% to 3%.

3) Check for repayment facilities: The majority of personal loan products have complete and partial prepayment fees. This means that if you want to pay off the balance of your loan before the term is out, you'll have to pay a small fee. Few banks do not charge foreclosure fees, but most banks, like Personal loan at ING Vysya Bank, charge between 2% and 5% of the balance. This will help you minimise your total debt burden because potential interest payments are deducted, but it still costs you Rs. 10,000 to Rs. 25,000 on a loan of Rs. 5 lakhs.

4) Settle for an affordable EMI: Before you take out a loan, you must be sure that you will be able to make daily repayments to close the loan on time and without penalty. You will need an estimation of the equated monthly instalment (EMI) that you will have to pay on the sum borrowed for this. When you use an EMI calculator, you can quickly determine your estimated EMI. You can use any online EMI calculator to find loan sum, tenure, interest rate, processing charge, and prepayment options.

5) Check all available loan options: A personal loan is not always the only option for getting through an emergency. Approach friends and family to see if they can lend you money, especially if the amount is small. This way, you will avoid the hassle of paying additional fees to a bank. However, you should be aware that having monetary transactions can often destroy relationships. So, if you take out an interest-free loan from a family member, make sure you pay it back on time to prevent strain in your relationship.

Aside from the above factors, you will also want to understand the penalty for late EMI payment, the reputation of the bank from which you are borrowing, the bank's customer service, and the loan's tenure. Whatever decision you make, keep your financial goals and capabilities in mind. No matter how bad the emergency seems, it is not smart to give way to another crisis while getting out of one.

Must Read:- Personal Loans Have High Interest Rates 

Personal loan sanctions one to borrow money to finance personal expenses and then return that amount over a period of time. Personal loans are a type of instalment debt that allows you to obtain a lump sum capital. For example, one might use a personal loan to pay for - Moving costs, Debt repayment, Medical bills, Marriage expenses, Home renovations, Funeral expenses, Vacation expenses, Unexpected costs, etc.

These loans are unlike other instalment loans—such as student loans, car loans, and mortgage loans—that are used to fund specific expenses (i.e. education, car purchase, and home purchase)A salary slip is a document delivered by an employer to an employee. It holds a comprehensive account of the employee’s remuneration elements such as house rent allowance (HRA), leave travel allowance (LTA), bonus paid, etc., and withdrawals for a stated period, usually a month. 

It could be issued on paper or mailed to the employee. Employers are legally required to give salary slips to their employees periodically, as evidence of salary settlements to employees and withdrawal made.

For the purpose of measuring one’s repayment capabilities, money lenders look into one’s financial profile before sanctioning a loan. Part of this involves checking one’s income and validating it through their salary slips. That being said, it is possible for one to get a personal loan without salary slips, too, especially if one is self-employed. At times the procedure involves exhibiting alternate sources of income and sometimes establishing a rapport with their lender and maintaining a high credit score.

Six recommendations to obtain a Personal Loan without a salary slip are - 

Produce an alternative origin of income

If one is self-employed. A freelancer earning in cash or working on a contract; then one can seek a personal loan without a salary slip. In synch a scenario, one needs to show other financial statements to verify their income; it can be in a bank statement, income certificate, form 16, or ITR. A stable source of income reassures the bank of one’s repayments capabilities and helps one obtain a personal loan.

Maintaining a high credit score 

When one is self-employed or facing unemployment for a period of time, it is crucial to maintaining a good credit score. This number reflects one’s repayment history, credit handling capabilities, and debt status. It serves as evidence of one’s creditworthiness in front of the money lenders. It indicates the approach adopted by one towards debts. Maintaining a credit score of 750 or above displays creditworthiness.

Offer to pledge an asset as collateral

In the event one lacks the financial strength at present, enquire if the moneylender sanctions asset-backed loans. Good securities such as high-value FDs, mutual funds, or gold gives one something other than just their financial profile. They were offering to pledge an asset as security improves the chances of obtaining a personal loan without a salary slip.

Enlist for the loan with a co-applicant

Signing up for a personal loan with a co-applicant with a high credit score can play a crucial role in obtaining a personal loan without one’s salary slip. This is because it will increase the lender’s trust and confidence in one’s repayments abilities. The co-applicant serves as a secondary source of repayment. Therefore if one fails to make the repayment, the lender can bank on the co-applicant to repay the amount.

Find a moneylender with easy conditions 

When trying to obtain a personal loan without a salary slip, it is vital to find a moneylender who maintains simple criteria. This will allow one to get a hassle-free application, verification, and approval. A lender that offers simple eligibility terms on personal loan is Axis bank.

Establish a good relationship with your bank

By being loyal to it for all financial and non-financial services. This helps in maintaining trust with the bank, which then decides one’s loan competence as well as one’s repayment capacity. If one is applying for a personal loan at the same bank, where one’s current account or savings account is located, it becomes easier for the bank to consider them competent for a personal loan. As the bank is fully aware of all the transactions being made on their account, it helps them assess one’s creditworthiness.

Read More:- A perfect personal loan 

Banks are enormous lenders when it comes to loans, as they hold the capacity to lend and provide benefits to their customers. They work in a cyclic way wherein they lend the money that people deposit and make profits by charging more interest on loans, paying less interest on deposits, and providing other benefits of security and online services, making their work extremely powerful and coherent.

To apply for a loan, the borrower should either go to the bank for a meeting or must call the people from the bank to their place. He must know the bank branch details of the bank where he is applying for a loan. Details like the bank account number, government identification number, age, IFSC Code, amount of the loan should be precisely checked before submitting the final application.

Talking about loans, the different kinds of loans are:

Personal loans- Personal loans are unsecured loans in which the banks offer money to borrowers to meet their unique financial obligations. To apply for a personal loan, the borrower must provide the bank with proof of income and meet the eligibility criteria. Because the tenure of personal loans is usually short, the interest rates are more.

Home loans- A home loan acts as significant support for buying or constructing a home. For borrowers, it is advised to pay a handsome down payment (which should be a minimum of 20% of the house’s value, as banks pay upto 80%) because the rate of interest highly depends on the same. Talking about the loan tenure, it is also dependent on the down payment the borrower makes.

A borrower must choose the loan tenure based upon the logic that the higher the interest rate, the lower the tenure, and vice versa.

Car loans- Car loans are secured loans that hold the car as collateral. Lending institutions provide the facility of availing a car loan with a good credit report of the borrower. The borrower must have a high credit score to get a car loan application granted, portraying the repayment capacity. Having a good credit score increases the bank’s trust in the borrower, leading to a lower rate of interest.

Two-wheeler loans- Two-wheelers are found in nearly every household. They include scooters and bikes. Two-wheelers are usually inexpensive when compared to cars. To get this mode of conveyance, people can apply for a two-wheeler loan. It is easy to get a two-wheeler loan considering the borrower meets the minimum eligibility requirements. Now due to comparatively low prices of two-wheelers, the loan tenure is also short.
Even in this case, the two-wheeler would act as collateral and would be possessed by the bank if the borrower fails to pay instalments.

Small business loans- These loans are availed by businessmen and entrepreneurs who wish to expand their business or start a new venture. Business activities may also include paying salaries, meeting selling, administrative and general expenses, paying off business debts.

Gold Loan- People usually consider taking a gold loan when they require urgent money for any purpose. It is a secured loan that people think of taking because of its low interest rates. To grant a gold loan, banks do not ask for any reason to grant the loan.
To avail of this kind of loan, the borrowers must meet the eligibility criteria set by the concerned bank. They must prefer pledging gold items only, as other metals and gems are not considered for valuation. The borrower must also know that the bank would only provide a loan of 85% of the value of the gold pledged.

Education Loan- Education loans are sought after by scholars and students who consider going abroad for education or deciding to go to expensive universities in India. An education loan covers the tuition fee and the rest of the expenses incurred while studying/being a student. To avail of an education loan, parents usually co-apply with their children.

Read More:- Why Are Banks More Trusted Than NBFCs 

Youthful business people frequently get befuddled while picking between a business loan and a personal loan. While there's no basic answer, we assist you with picking the correct loan item by posting the highlights and benefits of both.

Simple Approval -

With regards to business loans, phenomenal credit is the first rule to fit the bill for something very similar. Moneylenders could in some cases request personal just as business FICO assessments. Some online moneylenders may give costly business loans to business people who can only with significant effort coordinate the measures.

Interest Rates -

Personal loan is planned by monetary establishments to help meet a person's personal requirements like a wedding, home renovation, or other crisis money needs. Personal loans may not be ideal for business visionaries since they could wind up causing the greater expense of assets particularly if their business is in the early stage. This is when business loans can end up being useful for them.

More limited Tenure -

A personal loan accompanies more limited tenure all things considered. Business people may need to pay more cash as EMIs each month while selecting a personal loan. This could affect the income of the business and harm its development in the beginning phase.

Future Lending Conditions -

This is the reason most entrepreneurs think that it's difficult to set up validity and get better loaning terms in personal loans. This demonstrates that entrepreneurs are in an ideal situation with business loans.

Use of Funds -

In the event that entrepreneurs get a personal loan, they may wind up utilizing it for a personal crisis. This could show an absence of order and abuse of existing assets particularly when they are being utilized for circumstances that are not related to driving business development. A business loan can ensure that business visionaries don't need to manage such issues.

Utilizing Government Schemes for Business Growth -

For organizations that meet all requirements for the public authority's credit ensure plans, they can undoubtedly get sans collateral assets of greatest Rs. 1 Crore. Along these lines, a business loan with a superior interest rate can suit the requirements of a business better when contrasted with a personal loan. A personal loan of Rs. 1 Crore could end up being hazardous for a business that is simply firing up.

Reason for Loan -

The reason for a loan and its desperation can impact the dynamic while picking a business loan or personal loan. In the event that the loan necessity is too high however the business is performing admirably, there are better odds of getting a business loan at sensible interest. Nonetheless, in the event that it is a crisis of monetary need, a personal loan can be effectively available when contrasted with a business loan. Contingent upon the need and the quantum of need, business visionaries can settle on the decision between the two available loan classifications.

Available to salaried corporate and government representatives just as independently employed people/experts, the Central Bank of India personal loan gives modified arrangements intended to satisfy different personal monetary requirements. Some of the banks always present the best unstable personal loans of up to Rs. 20 lakh and this all are guarantees that the personal loan amount is authorized with negligible conventions and bother. The personal loans offered by the Central Bank of India can assist an individual arrangement with different circumstances like health-related crises, home remodel, marriage costs, excursion consumptions, and so on.

Also Read:- Benefits Of Personal Loan 

Home loans and personal loans serve entirely different purposes. An individual goes for a home loan when they want to have their own home and goes for a personal loan for meeting any expenditure.

• A home loan can be availed for many purposes such as Home Purchase Loan, Home Construction Loans, Home Improvement Loans, Home Extension Loans, Land-Purchase Loans/Plot Loans, NRI Home Loans.
• A personal loan can be availed for many purposes, such as repaying any existing debts, home repairs, meeting marriage expenses, purchasing any gadgets, meeting any other everyday expenditure.

Banks charge specific interest in both home loans and personal loans. In the case of home loans, banks charge EMI (Equated Monthly Installments), which are to be paid every month, while in the case of a personal loan, the interest is to be paid at fixed intervals.

One of the significant differences between a Home Loan and a personal loan is that a home loan is secured. A home loan is secured against the value of the property, while a personal loan is unsecured. This is the main reason why a personal loan is more expensive than a home loan. Because banks are operating without any collateral in personal loans, they charge a higher interest rate. The lowest interest rates, which are implicated in a home loan, can go to as low as 6.6%, while in the case of personal loans, the interest rates can be as high as 10%. The lenders often offer a lower amount of loan in case of personal loans as it is unsecured, so to get a house, the borrower has to go for a home loan.

One more advantage of a home loan in comparison with a personal loan is tax benefits. A person can claim tax benefits in the form of tax deductions under Section 80 C of the Income Tax while paying the EMI of a home loan. But no such tax deduction is available in personal loan.

The benefit of tenure is made available with a home loan and not with a personal loan. Home loans are generally long-term and may go to as long as 30 years, while personal loans are short terms. The repayment of home loans is a much easier task as the compensation is spread over a long period.

Moreover, it is believed that a home loan is a better way to enhance your credit score than a personal loan. With prompt and timely repayment, an individual can improve their credit score in a better way. But the benefit of such can be seen more in a home loan due to its long tenure and better opportunity to make regular payments over a more extended period to enhance the credit score.

One common feature that is similar between both home loans and personal loans is the ease of availability. With enhanced competition and clutter in the financial markets, banks and other financial institutions are gearing up to attract more and more customers and provide them with many benefits and create dominance in the market.

So many lenders are offering similar services, and the customer has to choose the best amongst them. This calls for an accurate customer analysis of what they have to choose as per their needs and capacity. For example, ICICI Home Loan is known for providing the best in class customer service in the market. There are much more available from which the choice has to be made.

The process of applying for a home loan as well as personal loans has been simplified. Now the customer does not have to stand in enormous queues and wait for their turn. They can avail of any banking services at their fingertips. All the benefits of the banks and other financial institutions, including home loans and personal loans, have been made available on the lender's respective websites, portals, and mobile applications.

Conclusion:

Home loans and personal loans both serve different purposes, and both are pretty essential. Home loans are relatively cheaper and safer than personal loans, while personal loans are easier to avail with less documentation.

Also read:- Gold Loan vs Personal Loan