These are unsecured loans; hence one need not mortgage nor require a guarantor to avail the loan. Interest on personal loans varies between 12% to 25.00% based on the eligibility. Loans are given from 50,000 to 20 lakhs which tenures from 12 – 60 months. Documentations will be simpler as this is an unsecured loan. Loans will be repaid through EMI option with repayment choices ECS, AD or PDC.
Some of the banks give you the flexibility to pre-close the loan without any additional charges. Most banks have a pre-closure charge in the 4%-5% range.
Though availing personal loan is simple, there are a few points that one should keep in mind before proceeding. The more information you have will help you decide on the best option based on your requirement.
Explore multiple options – Do not go ahead with the first personal loan offer that comes your way. Using our platform you can explore different options based on your eligibility which will help you make an informed decision.
Do not focus only on the interest rate – While the interest rate is important please do note the processing fee as well as the pre-closure charges that would be applicable with each transaction. In case you propose to pre-close your loan, choosing a bank which has no pre-closure charges would make more sense even though the interest rate might be a little higher. Currently Axis Bank and Bajaj Finserv do not have any pre-closure charges; provided the loan has been serviced for certain tenure.
Do not borrow personal loan for investments as this could backfire.
Calculate your repayment potential before taking a loan. Though you might be eligible for a higher loan amount but you are not sure if you could pay the existing projected EMI’s please reconsider taking a smaller amount. A default or delayed EMI payment could result in effecting your CIBIL Score which will hamper the possibility of you getting loans in the future. You can always check on the EMI’s that you would pay using our EMI calculator. You will also find a lot of information on EMI at emicalculator.io
Below are the basic eligibility criteria to qualify for a personal loan:
- Age of the applicant should be between 21-60 Years
- Salaried individual with minimum income of Rs 25,000. Salary bracket would again depend on the city you live in and the company you work for. Eg. If you are in a Metro the salary requirement will be higher than non-metro and again if you are working in a top MNC the salary requirement would be lesser than one working with a start up.
- Should be staying in the city for at least 1 Year
- Total work experience should be at least 2 Years
- You would require basic documentation such as your address proof, identity proof, latest bank statements etc