A loan is very common and we all listen to this word very frequently. In today’s time, every second person is opting for some of the other loans; it may be a home loan, car loan, education loan or personal loans.
Before, we get into this segment of “personal loans”. We have to understand this specific term what a personal loan is or why it is called personal loans or how someone can avail the “personal loans”.
What are personal loans?
Any type of the loans which any individual avail from the bank in the form of some fixed amount of money with some specific interest rates to pay back in the desired amount of time in form of monthly instalments are called personal loans. One can get personal loan online today in present time very easily just by few clicks.
There are different types of personal loans.
- Secured loans
- Unsecured loans
- Fixed-rate loans
- Variable-rate loans
Some of the key questions which one considers for taking the personal loans are:
What will be eligibility criteria for getting a personal loan?
It all depends on the type of bank an individual decides to take from the interest rate differential in private or government bank for the personal loans section. To make the picture clear personal loans can only be given to salaried employees or some who is having a source of income to pay back the money in time. The employees of the company also avail these loans but it depends on their credit history.
Like if you are a fresher and just join the organization it is little difficult to avail personal loans banks need a more trusted individual to clear the loan over someone who will be in difficulty to pay back the instalments. The banks also verify the place of the residence of the individual there are documents verification which is done in every bank for the safety, that the person is authentic and details furnished by him are right.
What is the purpose of taking personal loans or where this loan amount will be used?
Like the name is personal it means for the personal use of individual choice it can be your car payment, marriage, trip to Maldives or world tour, buying new gadgets the bank will not ask where you will invest this amount of money because it’s personal loans.
Duration to personal loans?
Ideally, it is 1-5 years depends on the type of amount an individual borrowed from the bank. Repayment tenure depends as per the convenience of the client
What is the minimum amount an individual can borrow?
It depends on every institution and varies from each other. Some have 15000/INR while others have their bar at 30000/INR and it also depends on the individual decision too how much he wants to borrow.
How banks decide the minimum to the maximum loan amount?
It differs from every banks and institution but there are some key factors which a person knows before applying for personal loans. The credit score that’s the key factor in this process the higher the credit score the more are chances of getting the loan availed and the current income status of an individual also put on the table if you are having a low-income source to chances of getting higher loan amount is less over those who are having higher income source. The bank needs to put them first insecure state before handling the loan amount to the person.
Which banks offer the best amount of personal loans?
It all depends and varies from institution to institution. There are some key factors which you can look up to like processing fees, interest rates, the period of the loan amount. It is one of the crucial factors to be considered.
Higher the CIBIL score the more chances of getting loan. Is it so?
The credit score above 700 considered to have good score in the frame of any bank or financial institution. With the high score of above 700, you can even negotiate the processing fees or higher interest rates to get the loan under your choice and you have some options available to select the best to take the loan from.
From taking the people choice personal loans are best over other types of loans out there. But before taking up any loan you have to consult best banks or Financial Advisor or institution to help to match your opinions as you definitely need to analyse as it has become very easy to get personal loan online today, so there are so many chances that you may be cheated that’s why you need to cross-check every minute details just before opting and selecting the company or bank from where you take the loan.
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