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Life carries a multitude of challenges and surprises for everyone. While there are certain situations we can plan for in advance, some uncertainties of life cannot be predicted. During such challenging times, your financial stability can also take a hit. In order to brace yourself against such unpredictable emergencies and secure yourself financially, you need to take some precautionary measures; this is where Personal Loans can come to the rescue.
A Personal Loan is an unsecured loan that can be utilized to meet various kinds of financial needs. These financial needs can include emergencies, educational pursuits, home renovation, buying resources for business purposes, vacation expenses, debt consolidation and so on. Features such as fast processing, minimal document requirements, and flexibility of the loan’s application make Personal Loans a desirable method for taking the burden off your finances.
Salaried individuals and business professionals are considered eligible for a Personal Loan. Since it is an unsecured loan, there is no collateral involved. Applicants should meet the eligibility criteria on the provider, such as earning a minimum income, or being within a certain age bracket. Additionally, providers will ask for the applicants credit history; a higher credit score indicating a good financial history can give you a better chance of approval as well as for negotiating benefits.
You can get a Personal Loan from a number of banks, financial institutions and other providers. For example, you can avail a Bajaj Finance Personal Loan of up to Rs. 25 Lakhs, available on Finserv MARKETS at an affordable interest rate.
Generally, Personal Loans are repaid through periodic payment over the course of a specific tenure. Instead, Pre-closure or foreclosure occurs when a Personal Loan is repaid in full in one single instalment, before the due date. Generally, a Personal Loan has a lock-in period of one year after which the customer can settle the loan amount. Foreclosure can be carried out by the lender or the borrower; the former undertakes foreclosure if the borrower is considered incapable of repaying the loan and is defaulting on EMI.
Borrowers can foreclose their account to reduce their debt and build a strong credit score. The lender may levy a foreclosure charge which generally falls between 3-6% of the principal amount yet to be paid. For example, Bajaj Finserv pre-closure charges stand at 4% plus applicable taxes and cess on the total withdrawable amount depending on the term of the Personal Loan.
Since it is an unsecured loan, the applicant does not have to list assets such as their car or house as collateral. The loan is offered based on their credit history; if the credit history is good and repayments have been consistent, the applicant is considered a low-risk borrower. However, Personal Loan interest rates may vary given that the loan is unsecured, with a lot depending on the credit score and repayment ability of the borrower, tenure and other criteria. For example, the Bajaj Finserv Personal Loan interest rate starts at 12.99%.
You can customize the tenure of your Personal Loan according to your preference. The repayment period can span from 12 to 60 months. However, you should keep in mind that interest rates do differ across tenures.
You can get the Bajaj Finance Personal Loan in just 24 hours.
In some cases, such as making a down payment for a house or home renovation, Personal Loans can also help you avail tax deduction of up to Rs. 2 Lakhs on the interest payment as per Section 24B of the Income Tax Act.
There are a few key points you should remember while applying for a Personal Loan. You should factor in associated charges like late payment penalties, prepayment fees and documentation charges. Don’t forget to double-check your credit score, payment charges, repayment period, documentation, and terms and conditions carefully. Additionally, note that interest rates, processing fees and pre-closure charges differ from provider to provider, and thus it is crucial to assess all your options in the market and shortlist a few before finalizing a loan. Finserv MARKETS offers you a range of options from several providers in India, from which you can easily review and compare Personal Loans and choose the one that suits your requirements the best. A good option is the Bajaj Finance Personal Loan, which comes with a flexible tenure over 12-60 months and interest rates starting at only 12.99% per annum. Whichever Personal Loan you choose, you can easily apply for a loan online with the hassle-free facility offered by Finserv MARKETS.