Know Your Personal Loan

 Know Your Personal Loan Better

The number of people taking personal loans increasing day by day. They can use this amount of loan to meet their personal expenses like a wedding, buying a car, medical purposes, educational purposes, or buying a house.

What is a Personal Loan

• A Personal Loan is an unsecured loan. Unlike a car loan, home loan or gold loan in the personal loan, there is no need to pledge against any asset. You can get a personal loan from any banking or non-banking financial organization.
• However, the rates of interest are very high in the case of a personal loan compared to a car loan, home loan or gold loan. The reason after that is you don’t pledge anything to the bank or the non-banking financial company.
• So there is a lot more perceived risk in personal loans. However, the probability of getting a personal loan depends on your credit history and your source of income more.
• It is important to note that if you do not return your personal loan in any case, then it will affect your credit history, and you will not be able to get any credit card or any loan in future.

Eligibility 

• First of all, your age should be greater than 21 years and less than 58 years.
• Besides that, you should have some rigid source of income.
• Your credit history should be good.

Click here to know more about personal loan eligibility criteria.

Duration

A person can get a personal loan maximum of 5 years. Some banks provide it for 4 years maximum. However, the minimum time period to return a personal loan is one year.

Disbursal Time

Disbursal time is a maximum of 7 days. But if you have complete documentation, then your loan can disburse within two days.

Amount of Loan

The minimum amount of personal loan you can get is 30000, and the maximum is 25 Lakhs. However, the bank decides that loan amount to be sanctioned based on your credit score and employment. Therefore, if you have a good credit score and a good source of employment, then you will get a good amount of loan.

Rates of Interest

Although rates of interest vary from bank to bank but still here is an idea of interest rates. It starts with 11.49%, and it can be up to 22% per annum.

Extra Charges

You have to pay some additional charges to the bank while applying for a personal loan. These are non-refundable. Mostly these are 1 to 2% of the principal amount.

Are rates Floating or Fixed?

EMI’s will be fixed if interest rates are fixed. Whether in the case of floating rates of interest, your EMI will keep on decreasing.

Apply online with Dialabank to avail best offers and deals on your Personal Loan

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Special Note: An individual must examine the whole EMI amount payable to the lender with the Personal loan EMI calculator.