The need for funds can come from anywhere to anyone. In such situations, people look for sources from where they can get urgent funds. One of the popular sources among customers is Personal Loan. There are several banks and Non-banking Financial Institutions (NBFCs) that provide personal loans to customers at affordable interest rates. A personal loan helps customers to fulfill their various needs with a higher loan amount. Some of the prominent benefits of Personal Loans are Instant Approval, affordable interest rates, faster turnaround, minimal documentation, etc. Apart from a personal loan, lenders also provide different kinds of loans to customers according to their needs and convenience such as Home Loan, Loan against Property, Car Loan, Gold Loan, etc.
We are showing some of the highlights of a personal loan in this article that you should know before going for a personal loan. So, if you want to know them, keep reading.
- Among customers, the personal loan remains to be the top choice because of the ease and convenience with which they can get the loan amount. But there is another thing too; for a personal loan, lenders don’t ask for collateral or security from the customers. The customers don’t need to pledge any kind of security.
- There is no end-use restriction when you are going for a personal loan. You must be thinking about what it does mean? Well, it means you can use a personal loan for your child’s education or marriage, buying the latest gadget in the market, funding your aboard trip, or any other thing. Lenders don’t ask for the need before sanctioning the loan amount.
- Lenders provide a maximum repayment tenure of 5 years within which customers can choose the tenure according to their repayment capacity and monthly income. Choosing a long tenure can end up paying a higher interest amount while it can be lower in a shorter tenure.
- You should compare all your options when choosing suitable personal loan interest rates as they tend to be comparatively higher than secured loans. Higher interest rates will make your repayment amount higher and vice versa.
- Personal Loan interest rates depend on a range of factors such as Applicant’s age, Monthly Income, Existing Obligations, Employment Type, Job History, and Credit Score.
- Individuals with good credit scores (750 or above) are most likely to get lower interest rates as compared to individuals with bad credit scores (below 650).
- On qualifying the eligibility, the loan amount is usually disbursed into your account instantly. This is why one of the reasons personal loans are so popular among the customers. When people want urgent money, they opt for this facility as turnaround time and approval time is considered to be quicker than other loans.
- If you are worried about tiring documentation, just don’. Lenders only ask a few basic KYC Documents and Income Proof Documents such as Salary Slip & ITR. Just submit them, and you’re good to go.
- Credit Score plays a huge role in determining your personal loan eligibility. But there is one thing you need to know that if you make your repayments on time, your credit score can be improved at a faster rate.
How to Use the Personal Loan EMI Calculator?
One of the important things to consider before going for a personal loan is to estimate the EMI amount. When you have a correct estimate of the EMI amount according to your income, you can easily manage your finances. For this, lenders provide this amazing tool known as Personal Loan EMI Calculator.
To use this, you will need to put in a few details such as Required Loan Amount, Rate of Interest, and Required Tenure. As soon as you put these details into it, you will get the results within a second. These results will be EMI amount, Interest Outgo, and Total Payable Amount. You can use this tool for as many as times you want until you get satisfactory results from it.