Loan amounts can vary, typically ranging from ₹50,000 to ₹50,00,000, depending on factors such as income, creditworthiness, and lender policies.
Personal Loan: Accessing Funds for Your Financial Needs
● A personal loan is an unsecured loan provided by banks, financial institutions, or online lenders to individuals for various personal expenses. It is a lump sum amount that can be used for purposes such as debt consolidation, medical emergencies, home renovations, education, or any other legitimate personal financial need.
● Unlike secured loans, personal loans do not require collateral. They are based on the borrower's creditworthiness, income, and repayment capacity.
Eligibility criteria for personal loans may vary from lender to lender. However, common approximate criteria include:
While document requirements may vary, common documents include:
Personal loans can be applied for through various channels:
Personal loans can be applied for through various channels:
Loan amounts can vary, typically ranging from ₹50,000 to ₹50,00,000, depending on factors such as income, creditworthiness, and lender policies.
Personal loan repayment tenures usually range from 1 year to 5 years, allowing borrowers flexibility in choosing a suitable repayment period.
Yes, personal loans can be repaid before the tenure ends. Some lenders may impose prepayment charges, typically around 2-5% of the outstanding loan amount, for early repayment.
Loan approval times can vary but usually range from a few hours to a few days, depending on the lender's internal processes and documentation requirements.
The EMI is calculated based on the loan amount, interest rate, and tenure using a standard formula. Online EMI calculators are available on lenders' websites to help borrowers estimate their monthly installments.
Missing an EMI payment can result in late payment fees and negatively impact your credit score. It is advisable to inform the lender in advance if you anticipate difficulties in making timely payments.
It depends on the lender's policies. Some lenders offer top-up loans or loan enhancement options based on the borrower's repayment track record and creditworthiness.
Personal loans provide a lump sum amount with a fixed repayment period, while credit card loans offer a revolving credit facility that allows borrowers to borrow and repay as per their convenience, within the approved credit limit.
While a good credit score improves the chances of loan approval, some lenders offer personal loans to individuals with lower credit scores, albeit at higher interest rates.
Defaulting on loan repayments can lead to penalties, increased interest charges, legal actions, and a negative impact on you.