What is Personal Loan – How to get Personal Loan in India

A Personal Loan is the best option if you need funds for an urgent need or a short period. It can be applied for any purpose. A Personal Loan is money borrowed from a bank, credit union or online lender that you pay back in fixed EMI or installments, typically over two to seven years. Most Personal Loans are “easy” — not backed by ancillary.  It is an unsecured loan taken by individuals from a bank or a non-banking financial company (NBFC) to satisfy their personal needs. Performance Loans is one type of unsecured credit, and it can be used for almost anything, from paying medical bills to consolidating debt. If you find yourself needing funds to cover an expense, whether planned or not, a personal loan may be an option. Talk about some random questions.

What type of loan are Personal Loans?

Personal loans are a type of installment loan. That means you borrow a fixed amount of money and pay it back with interest in monthly installments over the life of the loan — which frequently ranges from 12 to 84 months. Once you have paid your loan in full, your account is closed.

Does a Personal loan hurt my credit?

Personal Loan can improve your credit scores in the long term as long as you consistently repay the debt on time. Any late payments can naturally damage your score if they’re reported to the credit bureaus. It can affect your credit score when: You buy for Personal Loans.

Can I get a loan without a job?

No. You have to be a salaried person. To approve a Personal Loan you need to submit your six months’ salary slip.

Can I prepay personal loans?

Some personal loans have a prepayment penalty. If you pay off the loan before it’s due, you will have to pay a fee. Prepayment penalties substantially reduce any savings that accompany with paying off your loan early. You may find you’re happier continuing to pay as scheduled.

What credit score needed to get personal loans in India?

While minimum credit score requirements vary depending on the lender, you will typically need a score of at least 550 to 580 to qualify for a personal loan.

Do a Personal Loans look better than credit card debt?

While personal loans may have higher interest rates than secured loans, they often offer lower interest rates than credit cards some as low as 6%. Using a personal loan to pay off credit card debt could assist you to save economize on interest and potentially get out of debt faster.

Personal Loan in India
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When should one take a Personal Loans?

No time is spent within the assessment of the collateral unlike just in case of a secured loan like gold loan or loan against securities or loan against property. There could be various kinds of personal loans depending on the end-use. But usually, a personal loan is of only one type and it can be availed of for any kind of requirement.

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Are Personal Loans available for holiday or travel purposes?

If you dream of traveling the world and visiting exotic locations, you can avail of a Holiday Loan from some banks. Like ICICI, HDFC, AXIS, etc. It offers a 2-month moratorium facility where no EMI is charged. The EMI starts from the third month without extending the tenure.

Do I need to provide any security to apply for personal loans?

There is no need for security or collaterals required for a personal loan.

How to apply for a personal loan online?

You can make the request for a Personal Loans through channels. Nowadays you can apply Online through SBI, ICICI Bank.

We discussed Personal loans as much as we can. Stay tuned with BLOGS ROCKS.