Yes, personal loans are useful in a financial emergency. These loans are soft on your pocket and help you meet the money requirements instantly. While borrowing a personal loan, you don’t need to provide any collateral for the loan amount security. It means this is a safer solution for all your money problems. So, whether you need a lump sum of money for educational purposes, medical treatment/surgery, wedding plan, etc. then apply for a personal loan. Read this article further and know the features and benefits of a personal loan.
High Loan Limit is Available in a Personal Loan
You can borrow a maximum of NR 40-50 Lakh in respect of a personal loan based on your bank or NBFC. The personal loan limit shall be dependent on the borrower’s income and repayment history. So, if you have a good repayment record and regular monthly income, you can borrow a maximum personal loan amount.
Below is a table showing different banks or NBFCs personal loan amount, so check them out and choose a suitable loan –
|Bank/NBFC||Loan Amount (In INR)|
|IDFC First Bank||1,00,000-40,00,000|
|ICICI||Up to 40,00,000|
|IndusInd Bank||Up to 25,00,000|
|Bajaj Finserv||Up to 20,00,000|
|Kotak Mahindra Bank||50,000-20,00,000|
What is the Personal Loan Interest Rate?
The lender charges an interest rate on your loan amount and this rate may vary based on your lender. So, borrow a personal loan from the lender that provides you a low-interest rate. Generally, the personal loan interest rate starts from 8.80% per annum.
In a Personal Loan, You’ll Get Easy Repayment Schedule
The lender provides you the facility to repay the borrowed loan amount plus the applicable interest into equated monthly installments (EMIs). You can pay your EMIs with banking facilities like NEFT, NACH, ECS, or standing instruction. Using these payment services, your personal loan EMI amount will be reduced automatically from your linked bank account.
What is Foreclosure and Part / Prepayment in Personal Loan?
In a personal loan, the repayment tenure can be up to 5 or 6 years, depending on your choice. And if during the repayment period you want to pay the whole balance loan amount or a part of the loan amount, it is called foreclosure and part/prepayment. The lender provides you this facility only after 12 successful EMI payments.
For your loan foreclosure or part/prepayment, the lender charges a fee that may vary from lender to lender. So, choose foreclosure or part payment in a personal loan, only if it is saving your money on EMI payments according to your calculations.
How to Apply for a Personal Loan?
You can apply for a personal loan by going to the bank or NBFC branch or using its online facility, if available.
What Documents Required for Personal Loan?
To borrow a personal loan, you need to submit the following documents –
- Aadhaar Card
- PAN Card
- Passport Copy
- Driving Licence
- Voter ID Card
Income Proof for Salaried
- Salary slip
- Bank statement
- Salary certificate
Income Proof for Self-employed
- Income Tax Return Report
- Profit and Loss balance sheet
- Bank statement