Personal loans are like a safety blanket that protects you from unforeseen emergencies. Personal loans are one of many types of loans that you can borrow from a bank or an NBFC. Personal loans can help you meet any financial shortfall. Whether you are buying a house, planning to study further, have a medical emergency, etc. personal loans can help you meet the expenses. Here are a few things that you should know about personal loans.
Personal loans are unsecured, which means that the borrower does not need to put up collateral like gold, property, etc to avail the loan. In case of a default, the lender cannot auction anything. However, the interest rates on personal loans are higher than those on home, car, or gold loans. Defaulting on a personal loan can affect your credit rating and your chances of availing other loans in the future.
The borrower can avail personal loan for any personal need. The bank does not monitor the use of money. Personal loans are ideal for situations when you need instant money or are falling short of money. It is also a good finance option if you need money to invest in business or property.
Anybody who has a regular source of income can avail instant personal loans. However, every bank has it's own eligibility criteria on the basis of your age, profession, income, ability to repay the loan, and place of residence. The eligibility is also affected by the company you work for and your credit history and score. The loan can be availed for a duration of 1 to 5 years.
The amount that can be borrowed depends upon your income and ability to pay the loan back. The banks limit your loan amount so that the EMI is not more than 40-50% of your monthly income. There is no doubt that personal loans have high-interest rates, but the interest rates usually don’t change or fluctuate. Personal loans have a fixed repayment period ranging from 12 to 60 months. And the failure of repaying the loan in this period may lead to penalties.
Applying for personal loans is no rocket science. The application is easy, but you should be mindful of the amount you are borrowing as you should be careful about your capacity to repay it. once the application is approved, the loan amount is disbursed to you within 7 days in the form of account payee cheque/draft or the money is deposited into your savings account.
Instant personal loans are a fast and convenient option for anybody who needs a little extra money to fulfil their dreams. Shortage of money should not come in the way of your aspirations. Therefore, personal loans are a great resort for anyone who needs financial help.
Apply for personal loans at the best personal loan providers and avail various benefits.