What is a personal loan?
There are many different kinds of scenarios in which you may need access to financial resources without dipping into your savings. In these scenarios, a personal loan is your best option. You can avail a personal loan from a bank or a non-banking financial company (NBFC) to meet almost any expense, including emergency situations.
What’s more, you can consolidate all your existing debts and loans into one personal loan and smoothly manage your installments. Personal loans are easily accessible — you can apply for one online — and since you don’t need to pledge any collateral, they usually come with instant approval as well. If you have a good CIBIL score and credit history, you can avail attractive rate of interest of personal loan.
What can you use a personal loan for?
A personal loan can be used to finance a wide variety of requirements and is suitable for almost any expense, planned or unforeseen, that you may have to incur. Here are some of the things you can use a personal loan for:
- Higher studies
- Wedding expenses
- Home renovation
- Travel and vacations
- Medical emergencies
- Buying a new or pre-owned vehicle
- Investing in real estate or other assets
You can get customized personal loans to meet your unique needs. The Bajaj Finserv Personal Loan, available on Finserv MARKETS, offers customized, collateral-free loans up to Rs 25 lakh to meet a wide range of financial requirements with attractive rates of interest, flexible tenures, instant approval and quick disbursal.
How can you avail a personal loan?
To qualify for a personal loan, you have to meet some basic personal loan eligibility requirements. These are mostly pertaining to your age, salary and employment status. You can check personal loan eligibility at Finserv MARKETS. If you meet the stipulated criteria then you can easily apply for personal loan online and get quick approval and disbursal. You will need some basic identification documents and you’ll be good to go.
What is the interest amount and EMI on a personal loan?
Along with the principal amount, you have to pay interest on your loan to the lender. The interest rate at which you borrow depends on your credit history and other factors like income. A Bajaj Finserv Personal Loan, available on Finserv MARKETS, offers interest rates as low as 12.99%.
You can pay off your personal loan in Equated Monthly Installments (EMI). EMIs are fixed monthly payments that you make to your lender for clearing your loan. The EMI you pay on your personal loan is calculated based on the loan amount you take, the rate of interest applicable to you, and the loan tenure you choose.
With the Bajaj Finserv Personal Loan EMI Calculator, this is easier than ever. Simply put in the principal amount, the applicable interest rate, and the tenure (in months), and the calculator will immediately compute the EMI that you have to pay every month, and will also tell you the total amount payable with interest. You can use the Bajaj Finserv Personal Loan EMI Calculator even before applying for a loan. You can input different tenures so as to determine an EMI number that you can comfortably afford every month.
For instance, assume that you want to take out a personal loan of Rs 3 lakhs. This is your principal amount. At an interest rate of 13% and a repayment period of 24 months, you will have to pay Rs 14,263 every month in EMI. Your total interest accrued will be Rs 41,301 and your total payable amount will be Rs 3,42,301 (principal + interest).
If the EMI is too high for you, you can opt for a loan tenure of 36 months (or higher, up to 60 months). In this scenario, assuming the other factors (principal and rate of interest) are the same, your EMI will be Rs 10,108, interest payable will be Rs 63,897 and total payable amount will be Rs 3,63,897.
Even though the EMI is lower in a 36-month tenure, your total interest payable is higher. If you opt for the longest loan tenure (60 months), then you will end up spending Rs 1,09,554 in interest payments — Rs 68,253 more than the lowest tenure (24 months).
Thus, using this calculator, you can determine which loan tenure works best for you depending on your needs and resources.
What is a Personal Loan EMI Calculator?
When you apply for an instant personal loan online, you also get access to an online personal loan EMI calculator. It makes it convenient for you to figure out the monthly installments on your personal loan. When you take a loan, the equated monthly installment is a key factor in deciding the amount and tenure of the loan. The personal loan calculator helps you instantly by calculating your pay-outs and, therefore, plan your loan and loan repayment better.
To calculate your EMI, just enter the loan amount required, rate of interest and tenure of the loan, your EMI will instantly be displayed. If you ever want to change the EMI adjust any of the three sliders on the personal loan EMI calculator. If you wish to lower your EMI, you can do so by reducing the loan amount or the interest rate or by increasing the loan tenure. If you can afford higher monthly payments, you could consider increasing the personal loan amount or reduce your tenure.
Are there any other costs attached to personal loans?
Bajaj Finserv Personal Loan, available on Finserv MARKETS, is completely transparent and comes with no hidden costs. All associated costs are mentioned beforehand. These include a processing fee (up to 2% of the loan amount), a foreclosure charge (4% plus applicable taxes on principal outstanding), and part-prepayment charges (2% plus applicable taxes).
Now that you have this information handy, along with an easy, online tool to calculate your expenses, taking out a personal loan for your needs should be a breeze!
“Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere”!