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People require money
for several purposes. When a person requirement is more than the money earned,
then there is a need to take money through a loan. Personal loan today becomes
famous among all people. Various banks and lending institutions provide loans
to the needy persons. Apart from the lending institutions and banks person can
take a loan from other sources also such as private institutions and insurance
companies.
Today, with the
invention of several banks and institutions, it is extremely easy to take a
personal loan. Person can take a personal loan for several purposes such as for
paying bills, going for vacation, medical expenses, and education expenses. All
banks vary with their interest rates. Personal loan is easy to
obtain. Banks check the credit history of the person, before approving the
personal loan. Person having decent credit score can avail a loan at the best
rates. Person having poor credit score can avail a loan at the highest interest
rates.
Person can take a loan
from any bank or institutions according to the requirement and interest rates.
Person can choose the best lender through online. Person can also compare the
different lenders and their interest rates. Person should examine the terms and
conditions of the bank, before applying for a personal loan. Banks also charge
hidden fees from the customer. Salaried person can get a loan at the best
rates. Banks also check the repaying capacity of the person. If a person earns
regular and handsome salary then, person can easily get a loan. Person has to
pay off the loan in EMIs.
Criteria for a personal
loan in India include:
The loan amount depends
upon the repaying capacity of the person. The tenure period on which person has
to repay the loan range from 12 months to 48 months. Different lenders offer
different interest
rates on the loan amount.
There is no collateral
required by lending institutions for a personal loan. Repaying capability
measured through the amount of salary, bank statement, last 6 months, salary
slips and credit score.
Lack of collateral is
one of the main reasons for the highest interest rates. Person can use EMI
calculator to calculate tenure period, loan amount, interest rates and
processing fee. Person can also compare several companies with the interest
rates. Documents required for a personal loan such as Employment proof, Age
proof, Income proof, Salary slip and bank
statement.
