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:
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:
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:
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