Blog #personalloanEMIcalculator

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

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

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

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

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

Personal Loans can prove to be extremely beneficial in fulfilling the needs of the borrower. These loans can be used for several purposes and the application process is also very easy. These loans are unsecured and thus offer a lot of benefits and require very little paperwork and documentation. Keeping in mind the unsecured nature of these loans, the banks and financial institutions charge a high rate of interest on loan amounts from the borrower.

Personal loans can be availed by people both by online and offline mode. The time duration for the processing of the loan application can take up to around 14-21 days. Online applications can take a lot less time than that. In general, the interest charged by banks and various financial institutions charges a rate of interest starting from 8.95% per annum. The applicants can apply for a loan amount up to INR 50 Lakhs based on certain criteria. The loan tenure offered by banks can go up to 7 years. Processing fees for the application process generally range from 0 to 3% of the loan amount plus the applicable GST.

The application status of Personal Loans can be checked via both online and offline modes. This enables the applicant in getting updates about the application status. Personal Loans have become quite popular among the people of India in the past few years. These loans can be used for the personal needs of a person like wedding ceremonies, home renovations, business investment, education, etc.  

Eligibility Criteria

To be eligible for a Personal Loan, the following requirements is needed to be fulfilled by the applicant:

• If salaried, the applicant should be above 21 years of age and below 60 years. In the case of self-employed applicants, the applicant should be at least 22 years old and below the age of 55.
  
  
• The net monthly income of a salaried applicant should be INR 15 thousand and the net income for self-employed applicants should be INR 25 thousand.
  
  
• The CIBIL score of the applicant should be at least 750
  
  

The application process involved for Personal Loans is quite simple and easy and does not require a lot of effort from the borrower. The Banks do not demand any asset from the borrower as security and hence the Paperwork and documentation involved in the process are very less when compared with other loan policies. This is why many people prefer Personal Loans over other Loan policies due to the benefits that personal loans offer.

Document Required

The following documents are required for the application procedure of 

Personal Loans:

• Proof of identity of the applicant
• Passport-sized photographs of the applicant
• Proof of Residence of the applicant
• Proof of income of the applicant
  
  

No security is required for the application procedures of these loans unlike Home Loans, Car Loans, Gold Loans, etc. 

Multiple repayment options are also available for the borrower to repay the loan amount. Online payment is also accepted by several banks and financial institutions. An online Personal loan emi calculator can be used to make an estimate about the monthly EMI that needs to be rapid to the bank. These calculators require details like the loan amount, rate of interest, and the tenure of the loan.

Some of the popular Personal Loan schemes offered by Banks and other financial institutions in India are:

• State Bank of India Personal Loan
• ICICI Bank Personal Loan
• Bank of India Personal Loan
• Bank of Baroda Personal Loan
• Axis Bank Personal Loan
• TATA Capital Personal Loan
• Fullerton India Personal Loan

The very fact that personal loans do not require any asset from the borrower as security makes it a pretty good option for borrowing money from the lending organizations. These have been used by many customers of banks and financial institutions at times of need. The amount borrowed can even be used for medical emergencies and hence have saved several lives in the past.

 Also read this: Gold Loan Vs Personal Loan