A lot of people in today’s day and age are opting for a personal loan for purchasing things that are costly. They also are frequently turning their monthly purchases into Easy EMI’s or equated monthly installments. If people experience any monetary constraints while buying a house or renovating a house for that matter or pitching in some money for the higher education of their children or perhaps having little or no funds during medical exigencies.
These are a few personal loan facts that will help you to know them better.
The first and foremost aspect about a personal loan is that unlike a car loan or a home loan, a personal loan doesn’t require any security. Therefore if you want the personal loan against your property or gold, that is not possible! This makes the rate of interest for the personal loans too high because of the risk involved while getting them sanctioned. If in case you end up being a defaulter in the repayment of your personal loan, it will reflect in your credit score and in future if you want to apply for a credit card, you won’t get one because of your low credit score.
What are the criteria for eligibility for a personal loan?
The eligibility criteria depend on the bank and different banks and different criteria. The main factors that influence your eligibility is your age, income, capacity to repay, loan, occupation and place of residence. You have to be a salaried individual, or a businessperson. The credit history of the individual too influences the eligibility criteria.
What is the minimum loan amount?
The minimum loan amount too varies from one bank to another, however most banks have set a minimum limit to their personal loan
And that would be Rs 30,000
What would be the maximum loan amount on the bank personal loans?
The maximum amount for a personal loan differs from one bank to another, however before a final limit is set on your loan amount there are some aspects that are deliberated on. A high credit score makes one eligible for a greater loan amount. Other than that a higher monthly income, your ability to repay the amount so on and so forth are all responsible in fixing the maximum personal loan amount.
What is the maximum loan time that I can take to dispose off the loan?
This is a big question that every borrower has in his/her mind. However the answer to this is pretty simple. The loan duration might be from one to five years. In case you want to know what is the Emi you have time calculate pay over the period of time you have chosen to dispose of your -personal loan there are countless EMI calculators that lets you see what is the EMI amount you need to pay every month.
How much time does it take for the banks to disburse the loan amount?
After the eligibility process is over and you have also checked your personal loan eligibility and things are finalised, the paper work id some and now all you wait for is to get the amount disbursed from the bank, it almost takes a week’s time from the loan application date to get the amount disbursed.