If you also want to take a personal loan and you want to know what documents you will need to take it, Or how much interest will you have to pay to take a personal loan, and in how much time the bank will give you a personal loan.
In this article, you will get all the information related to personal loans, after which you will not face any problem in taking a personal loan.
Considering the needs of today, most people need a personal loan, but those people have to face a lot of problems because they do not know properly how to take a personal loan and which bank gives them the lowest interest.
What is Personal Loan ?
A loan is given to you by many banks in which you do not need much paper and you get this loan easily. A personal loan as the name suggests is given for your personal needs in which the bank does not ask you where you will spend this money.
To meet your personal needs or in case of an emergency when you run out of money, you take a personal loan to meet your personal needs.
To meet your personal needs, a personal loan is taken from the bank, which is also returned to the bank in easy installments after the need is met, but interest is charged by the bank on this money which is paid by you in installments is taken from.
Things to keep in mind before taking a Personal Loan
- How much loan do you need:- Before taking a personal loan, you have to decide that how much money you need, you should take as much loan from the bank in which your need is met and you will not have any problem in repayment of that loan. Many people make such mistake in taking personal loan, they take more loan than required and later they have to face problems at the time of depositing the loan. Because banks charge you interest on the amount taken as loan, which is higher than the rest in personal loan.
- Loan Eligibility Criteria:- Before taking a personal loan, you should know your eligibility criteria so that you will know whether you will get the loan from the bank or not.
- How to repay loan:- You also have to make sure that how you will repay the loan as much as the loan you are taking, do you have enough income that you do not face any problem while repaying the loan.
Why personal loan is taken ?
This question must also be coming to your mind that why a personal loan is taken whereas the interest on a personal loan is high and the repayment period of a personal loan is also less.
There are some facilities you get in taking a personal loan, which is given to you by the banks, due to which people prefer to take a personal loan.
Mortgage is not needed
You do not need to mortgage any of your properties and do not need any guarantee to avail of a personal loan. In such a situation, you easily get a personal loan, for which no guarantee is required, just by looking at your CIBIL score, the bank gives you a personal loan.
Can be used as needed
You can spend the personal loan wherever you want as per your requirement. The bank will not ask you where you will use the amount given by the bank or where you want to spend the loan given by the bank.
What are the documents required to avail personal loan
You do not need many documents to take a personal loan and you can easily get a loan. There are some basic documents that you need to have before taking a personal loan.
- Id Proof
- Address Proof
- Income Proof
What are the benefits of a Personal Loan?
- Other loans like home loan, bike loan and education loan require a lot of documents but in personal loan, the loan is available by the bank in very few documents.
- There is no need to give any kind of guarantee like in other loans without a guarantor or without mortgaging any property, there is no need to do this in a personal loan.
- When you take a loan from a bank, the bank has to tell where you will spend the amount given by the bank, but in personal loan, you do not need to tell the bank where you will spend the amount.
- Easy to get only if you have good civil score.
- Now days personal loan is also available through many mobile applications in which you do not even need to go to the bank.
- Loan can be repaid in easy installments.
Can a Joint Personal Loan be taken?
Just like other loans can be taken in a joint account, you can also take a loan as a joint personal loan in which any member of your family can share with you in that loan along with the amount taken can also help return.
What is Personal Loan Interest rate?
State Bank Of India
Kotak Mahindra Bank
Bank of Baroda
IDFC First Bank
Home Credit Cash
Canara Loan bank
Bank of India
9.60% – 15.65%
11.25% – 21.00%
10.75% – 21.30%
13.99% – 16.99%
12.00% – 24.00%
12.00% – 17.00%
13.00% – 30.00%
11.00% – 31.50%
10.85% – 12.85%
Up to 1.5%
Up to 2.25%
Up to 2.50%
Up to 2.50%
Up to 2.50%
Up to 1.5%-2%
Up to 2%
Up to 3.5%
Up to 2.75%
Up to 0.5%
Up to 0%-5%
Up to 1%
Up to 2.5%
Up to 3%
Up to 2%
What is Personal Loan Score In Cibil ?
As everyone knows, to get a loan your CIBIL score should be good. Around 750 is considered a good civil score. Before taking a loan, it is very important for you to see your civil score, it will be good for you, then only you can get a personal loan.
How to check cibil score for free ?
Nowadays, many such applications have come in mobile, through which you can know your civil for free from your phone, which you do not have to pay any extra charge and you can know your CIBIL score sitting at home.
After knowing all the information, it is concluded that a personal loan is right for those people who want a quick loan for a short tenure and do not have any property as a guarantee. The interest on a personal loan is higher than the other two, so a personal loan should be taken only when necessary.
Also, Read This post:-
Interest rates on other loans are low, the interest rates on personal loans are high
To take a personal loan from a mobile phone, many mobile applications are available on the play store which gives you a personal loan if your civil is good.
Yes, a personal loan can be taken on a credit card and then returned to the bank in easy installments.
You need very few documents to apply for a personal loan, if the CIBIL score is good, the bank easily gives you the loan.
First of all, you check your credit score which is also checked for free, if your credit score is good then you will get a personal loan easily.