Blog #PersonalLoanEligibility

SITUATIONS IN WHICH A PERSONAL LOAN CAN BE YOUR SAVIOUR - A personal loan is an unsecured loan, which can be issued by a money lender or a bank or any other financing company. It is unsecured because you do not have to pledge any of your assets as security to the bank. HDFC personal loan is also an unsecured loan. The fact that there is no collateral required makes a personal loan suitable to avail in case of an emergency.

Following are some of the situations in which a personal loan can be your life savior-

Medical emergency- There are the emergencies that are the most serious ones and that can take a really serious toll on your finances. Sometimes, a medical insurance may not cover all the expenses and at that time, you can apply for a personal loan. When you will apply for a personal loan, the amount of money will be disbursed in your account in such a short period of time after the successful verification of your details and documents. Also, a personal loan is hassle free and can help you save up money too.

Wedding- Wedding is the one of the main life events of a person and everyone wants their wedding to be grand. A Wedding comes with a lot of financial stresses and not everyone can easily cope up with them. Here, a personal loan can help you as you just need to provide your details and no security and after the verification of the documents, the money will be transferred in no time in your bank account.

Relocation- If you are moving to a new house, you know that it can be stressful physically, mentally and financially too. Personal loan stands there for you in a situation like this. By availing for a personal loan, you can fill up all your expenses easily.

Unplanned vacation- Everyone loves to travel but due to the financial limitations and restrictions, not everyone can for a vacation every year. You can even enjoy unplanned vacations with the help of a personal loan. The money will be disbursed in your bank account in no time and the documentation is minimal and easy. The whole personal loan eligibility is really simple.

Home renovation- Most of the times, the expenses in renovating a home exceeds the original budget and we have no option left but that does not imply that you do not renovate your house or stop it because of the insufficiency of the funds. You can take some financial help by availing a personal loan and you are good to go.

Education of kids- As we all know that the education is getting more and more expensive with the passage of time. However, education loans are also available but some people may not be eligible to avail an education loan. Here, you can apply for a personal loan and provide the support and education to your children that they require. You do not have to see the financial instability as a burden rather you can take help by applying for a personal loan. A personal loan will also make it easier for your child as he/she can take up more courses and continue further education.

Buying gadgets- Today is the age of technology and it is really not easy to match up the pace with the rate at which the technology is progressing. New smartphones are getting launched everyday. From home appliances to the entertainment units, electronics and the technology have become an integrated part of our everyday routine. It has made our work easier. You can avail a personal loan to purchase the new things and keep yourself updated with the system without spending all your savings at once.

CONCLUSION - A personal loan can help you in a lot of ways and especially during the emergencies. It is an unsecured loan and it means that you do not have to provide any security to the bank at the time of applying for that loan.

Also Read:- Home Loan vs Personal Loan 

TATA CAPITAL  common myths about the personal loan that you come across. So the list of common myth TATA CAPITAL personal loan such as

Myth a low credit score equals a loan denial:

Borrowers often assume that a low credit rating will result in the rejection of their loan application. While it is true that your credit score is an important factor taken into consideration during the personal loan eligibility assessment, it is not the only criterion that you focus on. Lenders also consider your income and loan repayment ability along with your credit score. However, if you have a low credit score, the interest rate charged will be higher.

Myth only banks offer personal loans:

Another common myth is that banks are the sole source that gives personal loans. TATA CAPITAL non-bank finance companies (NBFCs) and lenders also offer personal loans. Banks generally have stricter loan eligibility and approval criteria, while NBFCs are quite flexible. Therefore, they're more willing to simply accept applications for private loans.

Myth Only salaried people can apply for private loans:

It is a standard misconception that only salaried people with a gentle stream of income can apply for private loans. Self-employed professionals, businessmen, public accountants, doctors, etc. will also apply for private loans. Lenders will evaluate your credit score and ITR before approving your application.

Myth Personal loans can't be used if you've got an existing loan:

Many borrowers believe that they can't avail of a private loan if they're already tied to an existing loan. albeit you're already paying off an existing loan, you'll still apply for an additional consumer loan. Lenders approve your application supported by your ability to pay and your current income. They calculate your current income after accounting for your EMI loan payments and MasterCard payments. If the lender is satisfied together with your ability to repay the new loan, your application is accepted.

Myth Personal loans can't be used if you've got an existing loan:

Many borrowers believe that they can't avail of a private loan from TATA CAPITAL if they're already tied to an existing loan. albeit you're already paying off an existing loan, you'll still apply for an additional consumer loan. Lenders approve your application supported by your ability to pay and your current income. They calculate your current income after accounting for your EMI loan payments and MasterCard payments. If the lender is satisfied together with your ability to repay the new loan, your application is accepted.

Myth No prepayment option:

Compared to other sorts of loans, TATA Capital personal loans have a shorter duration, which is why many borrowers believe that a prepayment option isn't offered. Like other loans, personal loans even have the choice of prepaying the loan before the top of the loan term. Most lenders have a minimum tenure that you want to make monthly EMI payments. After paying the EMIs, you'll foreclose on your loan after paying a foreclosure fee.

Myth Personal loans can only be used for private reasons:

This is a myth that creates many potential borrowers worried about choosing a private loan. Compared to other sorts of loans, personal loans have a shorter duration, which is why many borrowers believe that a prepayment option isn't offered. From travel plans to renovating your home, personal loans can assist you with any sort of financial emergency. you'll even get a private loan to take a position in your business. Are you trying to find the right place to urge a private loan? Look no further than TATA CAPITAL. With consumer loan interest rates starting at 10.99% and a 12- to 72-month tenure, you'll now say goodbye to all or any of your financial worries. Use our online calculator to calculate your loan eligibility and apply for a private loan today.

Once a poor credit score means it'll remain poor forever:

The score is neither constant nor fixed. Credit scores are recalculated regularly. So any new piece of data which may impact it is taken into account during recalculation.

Also Read:- Gold Loan and its relation to Personal Loan requirements