A Brief Overview Of Personal Loan In India

A personal loan, also called a signature loan, which is granted for personal loan and can be used in any way which you want. It is usually done for meeting varied expenses, such as home improvement, medical emergencies or for going out on a world tour. It is possible to get the personal loan in the range of Rs 50,000 to Rs 20,00,000. Usually, its repayment period varies from 1 year to 5years.rnWhat are the eligibility criteria required to fill to get the personal loan? Let’s have a look on some of the general criteria which should be met to get the personal loan- • It is necessary that the applicant should have an income which is not more than Rs 15,000 per month. • In case of salaried applicants, the age of the person should not be less than 21 years and it should not be more than 60 years. •In case of self-employed applicants, the person’s age should be at least 23years of age and should not be more than 65 years. • Some lenders also require that the applicant should be living in the same place for at least one year. • In order to get the personal loan approved, the applicant is required to give proof of income, identity and address along with bank statements. What are the varied things which you should know before approaching the lender to get a personal loan?rnBefore initiating the personal loan process, you should do a proper assessment of your financial condition. You should have clear in your mind about the amount which you are interested to buy along with your repayment capabilities. rnBefore approaching the lender, you should be sure that you have a good credit score. It is due to the reason that if you will have a low credit score then your loan application will be rejected by lender or you could be given loan at high interest rates. How to get the best deal in personal loan? In order to get the best deal on personal loan, you should carefully compare varied factors before selecting a personal loan. Let’s have a look on some of the parameters which you should checked- • Interest rates – Every lender charges their own interest rate on the basis of applicant’s occupation, income and credit history. The interest rate on personal loan can vary from 12 per cent to 25 per cent. You should choose that lender which is offering best interest rates. • Loan tenure – The EMI on loan will be high for a short duration loan and vice versa. You should make sure that you have enough funds to pay back the loan if you are having a high EMI. • Fees charged – Along with interest rate, there are varied other factors which should also be considered like processing fee, late payment charges, etc. It is also necessary to consider this fee structure.