A personal loan is the simplest variant of loan that one can get from the leading money lending organizations and reputed banks of the country. People often face financial breakdowns but step-back from taking a personal loan due to the lack of knowledge and prevailing anxiety.
Here, you will be able to have a clear picture of personal loan plans that are delivered by most reputed banks all over the country. Mind that it is always better to take this type of a loan from either a nationalized bank, private bank or finance company of esteemed repute.
It is primary to know about the various types of personal loans that you can take according to your needs. The loan providers allow the borrowers to take the loans to meet a broad spectrum of monetary necessities. Some are mentioned below:
Medical Loan
Personal loans taken for recovering the debts related to the medical sector can be considered as a medical Loan. All the organizations dealing with personal loans immediately provide this personal loan if you meet some simple parameters of eligibility.
A readily available loan for medical coverage crisis can be your best friend during an emergency.
Wedding Loan
Wedding loan is quite conventional among a plethora of borrowers. In India, wedding ceremonies are often celebrated with much enthusiasm and sheer grandeur. Indians have a common tendency to spend massive money on weddings. So the lending companies provide personal loans for wedding expenses. This is also considered as a personal loan.
Loans for vacations
People who are speculative about travelling often seek for lump sum capitals to meet their travel expenses. The dealers of personal loans can deliver personal loans for vacations.
Due to its simple nature, many borrowers take personal loans for buying houses and cars. This loan is thus considered as the multi-purpose loan.
Borrowing Limit
It is essential to know about the borrowing limit before taking any personal loan. The borrowing limit of the personal loan is variable. The lending organizations can allow you to take the loan capital that is around 40% to 50% of your monthly earnings. The grantable money is also dependent upon the type of job that you do. Chances of getting a higher capital will be more if you have highly paid a stable position in a top-ranking company. Well-settled business people can good capitals of personal loans.
The borrowers need to be aware of the fact that the lenders always maintain a minimum value for the loan. In recent time, the minimum loan amount is set at Rs.30,000.
Repayment tenures
Repayment tenures are variable when it comes to personal loans. It depends upon the borrower regarding the term plans he takes. The period of the loan generally ranges between 12 months to 60 months. In case of o the personal loans of higher values, it is always better to go for a loan of longer tenure.
Personal loans have a good chance of generating within seven bank working days from application. So, you must always note this during the time of emergency need.
Interest Rates on Personal Loans
The interest rates on personal loans are more than other types of loans. This happens because personal loans are completely unsecured. The borrower is more likely to experience legal problems leading to hefty penalties on failing to deliver the interests. The current minimum interest rate is set at 11.4% of the total loan capital. However, it differs from one lending organization to another.
The interest rates charged on a borrower is also dependent on the credit score and type of account he holds apart from the other criteria already mentioned above.
The lenders are ready to deliver the loans to the borrower in both constant and floating rates of interest. So, whenever you take a loan, make sure to know about the type of loan that you can manage easily.
Check out go loans to compare different Personal Loans and Business Loans
Eligibility
While discussing the personal loan, you can consider more straightforward parameters of eligibility. There are different age ranges for the servicemen and the businessmen opting for personal loans. The servicemen can get the loan up to an age of 58 years starting from 21 years. On the other hand, the businessmen can get the loan from 25 to 65 years of age.
Most banks follow a rule to only grant a personal loan to the borrowers whose monthly income is more than at least Rs.25,000.
The credit score is also an essential parameter that is looked upon by the reputed lenders.
So, these are a handful of the most crucial facts you need to know about the personal loans. It is expected that you do proper research regarding all the discussed aspects before taking a loan. Legal and financial experts can help you suggest the right tactics to get out from the debt trap easily.
