Personal loan ki jankari, personal loan interest rate | Personal Loan Offers : Going to take personal loan? Know these important things first, going for personal loan? Know these important things first, otherwise you will have to repent

Personal loans can prove to be a great tool not only to meet your financial goals but also in case of financial emergencies. These no-collateral financial facilities are provided by most of the banks and NBFCs in the country, often at competitive interest rates, and can be used for any purpose. While choosing a personal loan offer, there are a few important things to keep in mind.

Interest Rate on Personal Loan

Personal loan is currently being offered by most of the banks in the country at the rate of 8.90% to 11% p.a. and the interest rates can be as high as 24% p.a. But, the interest rate for a borrower is decided by the bank on the basis of his income, type of profession, credit score, loan amount required etc. Hence, you should compare the interest rates associated with different personal loan offers based on your eligibility.

Personal Loan Amount and Tenure

Lenders usually offer personal loans up to a maximum of Rs 30 lakh. Some lenders, however, may fix a loan lower or higher than this. But generally the loan ceiling is often not the same and it is decided according to the repayment capacity of the loan and the capacity of the borrower. So, first you should assess your actual loan requirement and compare the interest rates and benefits offered by various lenders for personal loans for the desired amount. Take only as much loan as you need and never borrow more just because you are eligible for a higher amount. Also, most of the lenders offer personal loan tenures ranging from 12 months to 60 months, while some lenders offer tenors up to 84 months. So, make sure that the lender of your choice gives you the loan for the tenure that is convenient for you.

Documents required for personal loan

The eligibility and documents required in case of personal loan are generally different for salaried and self-employed loan applicants. For example, while identity and address verification documents are the same for everyone, the requirements for income related documents are usually different (salary slips, tax returns, Form 16 for salaried applicants and non- Income documents such as tax return, bank statement and business income proof) for salaried and self-employed applicants. Hence, you should go through all the documents related to the loan products you have chosen, depending on your profession and make sure that you arrange them on time, so that you do not face any kind of trouble later. Fallen.

Pre-approved nature of personal loan

Many lenders also offer a pre-approved personal loan after evaluating the income and repayment capacity of their selected customers. Therefore, you should check that a good advantage with a pre-approved personal loan is that the loan is disbursed quickly as the documents are already verified by the lender. But, you still need to make sure that the interest rate applicable on the pre-approved loan offer is minimum as per your eligibility and the pre-approved loan amount is sufficient to meet your needs.

Personal Loan Application Process

In case you are not eligible for a pre-approved loan offer, you should check the ease of loan application process of your chosen lenders along with other factors like the applicable interest rate. In doing so, you can opt for an option where you can apply for the loan digitally as well as get paperless approval for the same.

Additional Charges on Personal Loan

Along with interest rates, personal loans also come with charges like processing fees, pre-payment and fore-closure charges, late payment penalties, etc. Make sure you check all of these charges before finalizing your decision.

Lastly, before applying for a personal loan, carefully evaluate your repayment capacity and take a loan only if you think that you will be able to repay the loan EMI on time as there will be any mistake in this regard. Or by default, the loan will keep on increasing and your credit score will be adversely affected which will make it difficult for you to avail the loan in future. If your existing debt is more than 50% of your current family income, reconsider your decision to take a new loan. If your credit score is less than 750 and hence your interest rate on personal loan is high, you can check other secured loan options like gold loan and FD or loan against mutual fund investment to meet your needs .

(This article is courtesy of BankBazaar) (Disclaimer: The information in this article is being given on the basis of expert report. This article is written for informational purposes only)