Personal Loan Are a form of instalment credit. Personal loan provides onetime payment of cash to the borrowers and the borrowers will pay back amount plus interest in regular basis, monthly instalments over the lifetime of a loan. Personal loan can be availed for any medical emergency, marriage expenses, and international trips. These loans fall in unsecured loans category and are easy to avail. There is no need to offer any collateral security for this loan. If we talk about the rate of interest is very high on personal loan as compared to other loans like house loan or car loan.
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Requirements to avail a personal loan
1. Eligibility- eligibility criteria of availing a personal loan are different as per requirements of the bank to bank. They basically need income stability of at least one year and a good cibil score is also required to avail a personal loan.
2. CIBIL Score- The history of credit is termed as CIBIL score and it varies between 300 to 900 the higher the credit score there is a good chance of availing the personal loan soon.
3. Interest rates- if you want to avail a personal loan you should check the rate of interest charged from you before applying for a personal loan. It varies from bank to bank you should check and compare the interest rates offered by different banks and NBFC before Availing the loan. The different interest rates on personal loan varies between 10.50 percent to 24 percent per annum. Compare and then go for the personal loan.
4. Procedure- You can apply personal loan offline or online if you are already having account in the bank where you are applying for the personal loan you can request the negotiation for the interest rate. If you are credit card holder you will get personal loan easily as your card shows the usage and your repayment history. One thing always keep in mind that the interest rates are higher on personal loans as compared with other loans.
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5. Prepayment charges- Always check the foreclosure charges before applying the loan as Banks and NBfc are charging foreclosure charges if you are paying your loan before completion of agreed tenure.so confirm the prepayment charges before availing the loan.
