Personal Loan Overview
In life, we weave many dreams and work hard to making them come true, be it kids wedding expenses, dream vacations, or home renovation, make all your dreams come true with a personal loan in just a pinch.
What is personal loan?
Personal loan is an unsecured loan which you can get from banks to fulfil your personal needs. Basically it’s a loan for any need and it’s quite easy to have it without asked many questions from the bank. You can take a personal loan for buying your favorite gadget for yourself or family, for traveling around the country and abroad, buying expensive items for home use, children’s education or any other work. Personal loan borrowers do not have to provide any guarantor or take collateral/pledge. It is because of this feature that it is so popular. Moreover, you also get the freedom to use the loan amount for any legal purpose.
Use of Personal Loan
Personal loan is a multi purpose loan which you can use for any legal purpose, like:-
Wedding
You may need to come up with cash to pay for your special day. If you take a personal loan it can be an affordable solution to cover all of your wedding expenses.
Renovation of your house
You can use a personal loan for a home improvement project & modify your kitchen or bathroom.
Purchase a vehicle & gadgets
Keeping pace with the pace at which technology is advancing is not easy. From entertainment units to home appliances & electronics are now integrated with ‘smart’ technology to make your daily work easier. Apply for a personal loan to meet such needs.
Emergency expenses
Many people do not have an emergency fund, so they are unwilling to respond when they suddenly need cash. In this case you can opt for personal loan. It will cost you less then credit card dept.
Paying for College tuition
Under the Higher Education Opportunity Act of 2008, lenders providing private education loans must make special disclosures, provide borrowers with a 30-day rumination period within three days of disbursement of funds and give themselves the option to cancel . Schools cannot be affiliated. These are just some of the rules that loans for educational use must follow.
Not all the lenders offer personal loans that meet all of these requirements. Since they do not adhere to these strict rules, many lenders actually prohibit the use of their personal loans for tuition-related expenses.
Down payment of the home
If you want to take out a personal loan to use as a down payment, you will be on the hook for two loans – the mortgage payment and the repayment of the personal loan. From a lender’s perspective, this can increase a borrower’s risk of defaulting on their payments, which is why traditional lenders and FHA lenders don’t allow you to use a personal loan for a down payment.
Some expenses of business
If a lender has no restrictions on using their loan amount for your small business, then you will be able to use the loan for any of your business needs. However, some lenders do not allow you to use your personal loan amount for any type of business expense.
A personal loan can be a useful tool for financing expensive projects, repairs and even big surprising expenses, yet there are some costs that they cannot be used to cover .So, personal loan can be quite easy to help us when we are required for money and this is a easy way to fulfill requirements. While some lenders may be more lenient on the use of the loan, you should always double-check the terms to make sure the terms are clear to you.
Features of Personal Loan
Interest rates
Interest rates of unsecured personal loan is comparatively higher than other loan but the increasing competition among the competitors, give benefit to you to choose the bank with less interest rates.
Repayment
Repaying the personal loan is easy because of the convenient options available for you such as post dated cheques, online payment of EMIs etc.
Minimal paper work
Getting the best personal loan is easier than other loans because bank understand the urgency needs of their customers and then they give approval quickly. Most of the bank process the loan request with in 48 hours.
Loan tenure
last but not the least, you get the enough time to repay your loan with equal installments and the tenure can be between 1-5 years. So you can take time according to you and repay the loan comfortably.
Loan amount limit
Whether you are salaried of self employed, you can get the loan as low as INR 20 thousand and as high as INR 20 lakhs which you can use for any legal purpose.
Process For Applying A Personal Loan
Applying for a personal loan online has become very easy these days. If you want to save your time then you can apply for a personal loan online from GRD India Financial Services Private Limited through Best Home Loan or any of the official sites of bank in a matter of minutes.
The mode of online application is Following below:-
- You can directly apply for a personal loan on our website www.grdindia.in
- You will be shown offers from multiple banks/lending institutions based on your loan approval probability.
- Now compare various options on parameters like interest rates, processing charges, prepayment charges and ratings and choose the best loan offer for you.
- Fill in some other basic information asked in the online form, so that the personal loan application can be sent to the bank/ loan institution chosen by you.
- Upload documents or set date and time to deliver documents.
- After this for verification, you will get a call from the bank by the agent.
- Discuss you all doubts from agent and there will be some basic formalities, complete them as bank’s directions.
- After the verification is successful, the loan will be approved and the loan amount will be transferred to your account.
Eligibility Criteria of Personal Loan
There are some following factors that are considered by the some lenders while looking at your loan application. If you meet these eligibility criteria, you can consider yourself eligible for a personal loan.
| Criterion | Salaried | Self Employed |
| Age | 21 to 60 Y | 22 to 55 Y |
| Monthly Income | 15,000 | 25,000 |
| CIBIL Score | 750+ | 750+ |
| Min loan amount | 50,000 | 50,000 |
| Max loan amount | Rs.25 Lakh | Rs.50 Lakh |