Apply for Personal Loan

Personal loans may become very handy these days. Personal loan is a loan which can be obtained for any personal reason and the loan provider doesn’t need to know the reason for the loan. Before you go for this attractive loan you should thoroughly research about it by any what mean you can. Pros and cons for this loan are many as compared to any other loan.

This loan can be of two types – secured personal loan or unsecured personal loan. A secured personal loan is a loan which is provided against a collateral or security. A collateral or security is the asset or assets which you pledge to the loan provider so that in case you can’t repay the loan the bank or the financial institute which is providing the loan can use this asset to recover their loan amount. This asset can be anything e.g. property, gold, shares, mutual funds, fixed deposits or your public provident fund. Whereas in an unsecured personal loan the loan is provided to you without any security or collateral, it is solely provided on the basis of you credit history and income status.

The loan amount for a personal loan can be from Rs. 50,000 to Rs. 20 lakhs. The loan amount you can get is decided by the amount of money you need and your income status. Income status is the amount of money you earn monthly or annually and the nature of your job or business you get your income for. Some types of income are considered as unstable by the banks and other financial institutions.  The people with good credit history and good income status can get a personal easily.

The interest rate on these loans is comparatively very high. The average interest rate on these loans can be from 13.5% to 32% depending on the loan provider and the loan seeker. Also, the repayment tenure is also comparatively shorter i.e. from 1 year to 5 years. The age of loan applicant should be at least 21 when the loan commences and should not be more than 60 when the loan tenure ends. Almost all the major banks and financial institutions in India provide this loan as this loan offers them good returns on their investments.


Post a Comment