Personal loans are taken by an individual for multiple purposes. The loans can be taken from any of the lenders by the borrower in the case of personal loans. Personal loans are suited for business individuals to expand their own business, start a new business, and increase the flow of money into the business. The loans are available at attractive interest rates of 9-14% per annum. The banks also charge a processing fee of around 1% of the loan amount or Rs.10,000 whichever is lower. The loans can be taken at the best possible negotiated rate in case of a good credit score. The banks approve the personal loans only in case of a good credit score and proper documentation. The interest rates of the banks vary according to the lender to lender. The banks are keen to extend the loans to the borrowers who are amongst the honest payers of credit. The lenders may charge a penalty in case of the late payment of the EMI’s beyond the due date. Thus paying the installments on time is necessary. The interest rates may vary according to the lender to lender. Thus opting for the loans at the lowest possible interest rates is the responsibility of the borrower.
The banks easily approve the loans of the borrower as the amount for the personal loans is comparatively low than that of any other kind of loan. The loans taken if repaid on time can help the borrower improve the CIBIL score which can help in easy availing of future credits. Also availing mix of credit like the credit card, personal loans, car loans, home loans, business loans for SME. Availing of a mix of loans can put a positive impact on the borrower’s credit score. The loans taken can be repaid up to a maximum tenure of 5 years. The loans should be taken according to the affordability of an individual. The loans are approved by an individual according to the income of an individual. The higher the income higher is the approval of the loans for an individual. The maximum liability for the business loans is Rs.25 lakhs up to which the borrower can take the loans from the lender. The loans are necessary to be paid on time to avoid a default of the loans. Loans can be used for the running expenses of the business. A businessman typically needs a huge amount of money for running a business, thus availing loans is an extra source of income for the business to maintain a sufficient flow of cash.
Process of applying for the personal loans:
- Go to the official website of the bank or an NBFC.
- Click on the application for a loan.
- Fill up the application form. And click on submit.
- Upload the documents on the portal, the scanned copies.
- Read & accept the terms & conditions carefully and then click on submit.
- The bank does the background verification check of the borrower. And also verifies the documents of the borrower.
- Post to that the bank credits the amount requested by the borrower. And then the regular EMI collection starts.
- Thus the bank approves the personal and then starts the collection of the loans.
Thus we can conclude that the personal loan application process is very easy and simple and thus it is recommended that the borrower should opt through online application for personal loans. In the case of online application of the personal loans faster disbursement of the loans can be done instead of the 48 hours being taken for the disbursal of the loans. The online application requires proper documentation work for the approval of the loans.