The Indian banking regulator Reserve Bank of India (RBI), in September this year, decided to reduce the risk weight for consumer credit, including personal loans, from 125% to 100%. This now allows financial institutions to offer loans at a more affordable rate of interest. Following the guideline set by the central bank, lenders will be required to increase their provisioning to cover loan defaults, subject to the risk perception on personal loans. So, from now on, availing a personal loan will likely cost you lesser than before.
What is risk weightage?
In its bid to attract more customers to avail personal loans and boost consumer spending, RBI decided to lower the risk on consumer credit. Risk weighting denotes the quantum of provisions financial institutions are required to keep aside to cover losses in the case of loan defaults. Personal loans are an unsecured type of financing, and hence, have a higher risk associated with them. Since you do not need to pledge any collateral to avail an unsecured loan, these loans are offered at a higher rate of interest than other regular loans. Hence, this amendment in the norms has been made to minimize risk in the case of a default.
This is great news for people who were considering applying for a personal loan.
What is a personal loan?
A personal loan is a type of unsecured loan that you can opt for in times of crises. You can also avail this loan to fulfil a personal financial goal. From taking a foreign tour to having the wedding of your dreams, one can opt for a personal loan at any time. However, that’s not all. An instant personal loan can even help you during emergencies as well as to renovate your home. In a nutshell, this loan can assist you whenever you are in an urgent need of capital.
If you too are looking for a personal loan, then the Bajaj Finserv Personal Loan available on Finserv MARKETS might just be what you need. It offers a great range of benefits that include:
Instant personal loans up to Rs 25 lakh
Tailor-made personal loans to suit individuals’ needs
It is an unsecured loan, and hence, does not require a guarantor or a security
Flexible repayment tenure ranging from one to five years
How to apply for a personal loan?
At Finserv MARKETS, you can follow the below steps to apply for a personal loan:
Visit the website and provide your personal and employment details
Provide your requirement amount
Select a tenure for loan repayment
Wait for the money to be directly transferred into your account once approved
Are you looking for a personal loan? If yes, then with the reduction in risk weightage for consumer credit, the right time to apply is now! With Finserv MARKETS, benefit from quick disbursement, low EMI, minimal documentation, and a host of other features. What’s more? Your online personal loan application can be approved under just 3 minutes with the loan amount being credited to your bank account within 24 hours!. Also read what are the tax benefit of personal loan only at Finserv MARKETS.
“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App”.