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Thursday, September 22, 2022

Personal Loan – Low interest rate personal loans frm a wide range of lenders


Personal Loan – Low interest rate personal loans from a wide range of lenders

Personal loans are an unsecured form of credit that is popular to meet immediate requirements. It is multi-purpose in nature and therefore can be used for various purposes including wedding, home renovation, travel purposes and more. Moreover, there is no restriction for the amount borrowed and can be used for any purpose they want. In fact, a personal loan can help you build your credit faster when compared with other forms of credit. This is because of the risk it carries due to being unsecured.

All in all, a personal loan can offset any temporary financial crisis.

Benefits and Features of Personal Loan

No collateral required

One of the benefits associated with an online personal loan is that it is unsecured in nature. This means you don’t need to pledge any collateral for your loan. Although this can be a reason for your interest rate, you can get a low-interest personal loan easily if you meet the eligibility requirements.


Minimal Documentation

In this age of digitisation, the process of verification and documentation has now become short. This is applicable for an instant personal loan as they are fast in disbursal and require minimum documents for approval.


Easy Approval

You can get personal loans that are quick and easy in approval. This is why it is the best bet in times of financial emergency. Moreover, the process has become digital; thus reducing time in the verification process.


Multipurpose in nature

A personal loan can be used for anything except for investment and illegal activities. Apart from that, it is multipurpose in nature and can be used for anything. Other forms of credit when taken are for a specific purpose and can be used only for the same. For example, a home loan is used for purchasing a house whereas a car loan is taken to buy a car. However, a personal loan can be taken to offset any immediate requirements.


Personal Loan Eligibility

Personal loans are provided by most of the banks/NBFCs but with different eligibility requirements. However, there are certain criteria that are common for all financial institutions. The eligibility criteria to get an online personal loan approval for salaried and self-employed individuals are:


Documents Required for Personal Loan

The common documents required for an online personal loan approval are given below:

For Salaried Individuals

  1. Identity & Age Proof
  2. Completely filled personal loan application with photograph
  3. PAN Card
  4. Residence proof - Passport driving licence, Voter ID, postpaid/landline bill, utility bills (electricity/water/gas)
  5. Bank statements for the last 3 months(preferably your salary account)
  6. Salary Slips of last 3 months
  7. Form 16 or Income Tax Returns of last 3 years


For Self-Employed Individuals
  1. Identity & Age Proof
  2. Completely filled personal loan application with photograph
  3. PAN Card
  4. Residence proof - Passport driving licence, Voter ID, postpaid/landline bill, utility bills (electricity/water/gas)
  5. Bank statements for the last 3 months(preferably your salary account)
  6. Salary Slips of last 3 months
  7. Last 3 years Income Tax Returns with computation of Income
  8. Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account


Personal Loan Comparison Table

Here is a comparison table of the popular personal loans online along with their processing fees, preclosure charges and interest rate:

*The figures provided in the table are indicative subject to change from time.

Representative Example:

With a representative 10.75% APR based on borrowing ₹ 10 lacs and repaying over 60 months with 60 monthly repayments. Monthly repayments of ₹ 21618.

IMPORTANT LINK



Types of Personal Loan:

Here are the different types of online personal loan:
  • Personal Loan for Home Improvement There’s something that can be always done to your home and this is where an instant personal loan can help you fulfill them. From remodelling your kitchen to making your house a perfect mix of comfort and durability, a personal loan for home renovation can be the solution.
  • Personal Loan for wedding In India, a normal wedding cost ₹25 lakhs on an average! Exhausting all your savings for all the wedding expenses is not an ideal option. This is where you apply online personal loan and cover the expenses. Now, planning a wedding is now easy.
  • Personal Loan for Travel Apart from home renovation or wedding, you can get personal loan to cover your travel expenses. Since it is convenient and an economic option, it can be an open option. Moreover, it can alternate your uses with your credit card and help you save on interest costs.
  • Fresh Funding Meeting working capital requirements can be a daunting process and without raising fresh funds, the everyday operations can get affected. A personal loan can be the best alternative option to meet your short-term working capital requirements such as cover accounts payable, wages, etc
  • Top Up Personal Loan Top up personal loan is a facility provided by financial institutions to customers that allows you to borrow a certain amount of money over your personal loan. The interest rate for a top up loan is slightly higher than the regular personal loan.
  • Personal Loan Balance Transfer Did you know you can save thousands on your interest costs on a personal loan? Well, that is what a balance transfer can help you with. You can pay off your existing loan with a new loan at a lower-interest rate. Please note there is a charge associated with a personal loan balance transfer. .


Personal Loan EMI Calculator

When you plan to apply for a personal loan, EMI plays the most important factor. Whether or not the EMI will fit in your monthly budget can help in deciding your personal loan. This is where a personal loan EMI calculator can help you. A loan calculator helps you get the following results:
  1. Monthly Repayments - EMI you will be paying every month
  2. Total interest payable - Total interest on your loan
  3. Total amount to pay - The total amount which is a sum of principal and interest

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