Personal Loan

Personal loans are the unsecured loans offered by financial institutions wherein you are not required to submit any collateral with the lender. To minimize the risk of defaults or non-payments by the borrowers, most of the banks and NBFCs offers personal loans only to applicants with good credit score. Maintaining a credit score of 750 or above is always an added advantage in the loan approval process. It increases the chance of approval and helps in availing personal loan at low-interest rates. Credit score is generated by 4 credit bureaus operating in India like CIBIL, Experian, Equifax and CRIF Highmark, depending upon the financial documents submitted to them by the banks or lenders.

• Age: Minimum 21 years & Maximum up to 60 years
• Credit Score: 750 or above
• Salary: Min. Rs. 12,000 per month for salaried customers
• Income: Min. Rs. 5 lakh annual for self-employed customers
• Employment Stability: At least 2 years with Min. 1 year in the same profession & Min. 2 years for self-employed professionals (We do loans for freshers also with minimum 3 months of Experience)
• Employment Type: Salaried employees working with reputed organizations, MNCs, Private and Public Limited Companies, Govt. organizations, PSUs, and large enterprises, proprietorship Company, Partnership Company & LLP companies

*The personal loan eligibility criteria mentioned above is generic in nature and actual eligibility factors may differ from one lender to another.

Wedding Loan

Weddings in India are usually considered a costly affair and tend to be more expensive than expected. Shedding all of your savings on marriage shall not be a good idea. Therefore, you can apply for marriage loans to meet all the marriage-related expenditures. Wedding loans can be repaid with flexible repayment options as per the tenure.

Higher Education Loan

Personal loans for higher education can be availed to fund all the aspects of studying abroad for yourself, your children or your spouse. Higher education loans can be used to cover the expenses, such as paying off school/college fees, flight tickets, visas, accommodation, living expenses, etc.

Medical Loan

Just in case, if you do not have medical insurance for yourself or your family member and require finance to meet the urgent medical requirements. You can certainly opt for a medical loan that can be of great help in times of emergencies or cash crunch situations.

Loan for Home renovation

Home renovation has no end to it. You can invest as much as you want for maintenance, reconstruction, refurnishing, décor and much more. Personal loan can be availed to meet all home renovation requirements as per the budget.

Travel Loan

Personal loan can be availed to arrange a vacation or holiday trip abroad with your family. Travel loans can also be availed to manage domestic destinations, honeymoon trips, as well as cruises.

Debt Consolidation Loan

Affordable EMIs can be arranged and paid for debt consolidation purposes. All your loan or credit card debts can be arranged collectively into one and can be adjusted as per your convenience.

*The actual list of documents required may vary from one lender to another.

By following the below-mentioned points, you can avail personal loan at affordable interest rates:

Your Credit Score

Every lender checks your credit score and credit history before offering personal loan interest rates. This evaluation is performed to minimize the risk of any defaults from the borrowers. Applicants with a higher credit score are offered personal loans at comparatively lower interest rates. So, maintaining a credit score of 750 or above is always beneficial. High credit score depicts that the borrower has managed to repay the loan or credit card payments on time.

Your Monthly Income

Higher monthly income is preferred by lenders, as borrowers with high income are more likely to repay the loan in a timely manner. The affordability for the loan increases for borrowers with high monthly income. The minimum income criteria and eligibility shall vary from bank to bank.

Reputation of your organization

The reputation of your organization and the type of employment also are vital factors in deciding the personal loan interest rates. Applicants with high job security and those working with reputed organizations shall get loans at comparatively lower interest rates. Salaried employees may be offered different interest rates, as compared to self-employed professionals. Government and PSU employees are usually offered personal loans at lower interest rates because of their secured job and regular income certainty. People working with MNCs and reputed private sector organizations are usually offered lower interest rates than other private sector organizations. 

Your relationship with the bank

If you are already maintaining a good relationship with your existing bank or lender by repaying all the loans on time. Then the possibility of loan approval increases, along with the benefit of low-interest rates. Bank’s existing customers shall be selected for pre-approved offers, special deals, concessional rates and much more.

• Maintain your credit score above 750
• Check for inaccuracies in your credit report as they might adversely impact your credit score and thereby, reduce the chances of availing personal loan. 
• Compare the personal loan offers available from banks and NBFCs before finalizing any loan deal
• Apply for the loan from a bank/NBFC where you have the highest chances of approval
• Keep your credit utilization ratio minimal 
• Avoid making multiple loan applications within a short span of time

The fees and charges of personal loans usually vary from lender to lender and case to case. Some of the common fees and charges related to personal loans are as follows:

• • Loan Processing Fees
  • Pre-payment/part-payment or foreclosure charges
  • Verification charges
  • Loan Cancellation or Rebooking charges
  • Documentation Fees & Stamp Duty
  • Legal and Penal charges
  • Duplicate statement, NOC certificate, EMI/Cheque Bounce, Swap and late fees, etc.