Here Is All That You Should Know About Personal Loans

Are you in urgent need of money? Then the only way to finance your need is with a personal loan. Let us know in detail about the personal loans.

Personal loans are a way to meet your financial crisis during any emergency or need. Personal loans are easy disbursal, unsecured loans that require minimal documentation. The repayment terms of the loans are agreed as per the terms of the banks. This can be repaid in easy instalments within a few months or years as per the agreement with the bank.

When Can You Apply For A Personal Loan?

You can apply for a personal loan whenever you feel the financial crunch, this can also be taken to fund your dream vacation or to buy the latest gadget in the market, getting your interiors done or renovating your home. In a few cases, personal loans are taken to fund the children’s education or to fund a wedding. Personal loans are free to be used for any purpose till it is a legitimate financial need.

How Early Can You Get A Personal Loan?

You can get a personal loan within few minutes if you have a pre-approved personal loan. The banks after checking your credit history, allow you said amount that you can avail as your loan. The bank monitors your income and expenditures and thereby gives you the pre-approval. So, the cleaner is your credit history the earlier you get a loan.

In case if you do not have a pre-approved loan, you can get a personal loan within few hours or say a day.

What Is The Eligibility For The Personal Loans?

Salaried employees who work in any public sector undertakings or in a private sector with a minimum monthly income can qualify for this loan. The minimum amount for availing the loan varies according to the bank. The age of the individual should be more than 21 years or less than 60 years.

All individuals who have been working for at least 2 years with a minimum of 1 year working history with the current employer.

Documents Required For Applying For Personal Loan

In case of salaried professionals, the documents required would be the KYC documents, a loan agreement duly signed with a standing Instruction request (SI)/ECS Forms. Also, you would be required to fill an application form to apply for the loan.

What Are The Interest Rates For Personal Loans

The interest rates on the personal loans are calculated on fixed rate basis. So, in case of hike period the rates remain the same thereby helping in the process of budgeting. The interest amount varies according to the bank from where the personal loan is taken.

When To Repay The Loans

After your eligibility is verified, your lender will decide your repayment period with your mutual consent. The tenure of the loan and the repayment period also varies depending upon the bank and this decides your rate of interest.

Personal loans are the best way to fund the products that fall short of funds, and so it is preferred by a majority of the people. So, to apply for personal loans, you must clear all your past payments and have a good credit score.