Personal Loans, advantage and disadvantage
Get a personal loan easily, know pros and cons of personal loan, documents, processing etc, Read full article.
Personal loans are fuel to our needs which we can not fulfil from our regular earnings. Many of the people who are in jobs, avail personal loans to cater their needs like buying a vehicle, house, purchasing mobile phones, travelling to tourist, marriages and many more.
People in business better understand the value of money which is available at a low interest rate and white label.
Know all personal loan charges
Personal loan Types
There are two types of personal loans –
- Secured personal loan
- Unsecured personal loan
Secured Personal loans are those loans where a person has to deposit/ mortgage or provide security to avail a loan. For example loans against property, Gold, FD, LI etc.
Unsecured personal loans are those loans against which we don’t have to provide any security, like loans to salaried people, pension loans etc. There are many banks and private companies which provide unsecured personal loans. Personal loan without guarantee is provided on the basis of savings account maintenance with them and good credit score.
Read about impact of Instant Personal Loan on CIBIL Score
Role of credit Score like CIBIL, Equifax etc.
To avail a personal loan Credit Score plays a very important role. Good credit score can fetch you good offers like lower interest rate, higher loan amount, quick processing. A good credit score can be maintained by repaying existing loans timely. If a person has a bad credit score or low CIBIL Score, he/she can try calling a credit score provider company like CIBIL to get a solution to the problem.
If your credit history is showing details like PAN, ADHAR, Voter ID of some other person or details are incorrect, one should contact the company who has generated the report. For example if you have generated a CIBIL report which is showing wrong details then you can call on the contact number published by them or email them. Here are some contact numbers which can be reached.
- CIBIL Contact Number – 022-61404300
- Equifax Contact Number – 1800 209 3247
- CRIF Contact Number – +91-22-7171 2900
- Experian Contact Number – 022 6641 9000
- (Call from 10:00 AM to 6:00 PM are general timings for all companies)
Read What are the personal loan rejection reasons
Shall I avail private bank personal loan or government bank personal loan?
Customers can avail personal loans from various sources like, from Private banks, Public sector Banks (Govt Banks), Non Banking Financial Companies (NBFC). Nowadays, various fintech startups like PayTM, BharatPe, PhonePe etc. are also providing personal loans.
Personal loan amount
A salaried person can avail a personal loan on his salary, a pensioner can avail on pension (regular or family pension). The Govt Banks are generally restricting the loan quantum to 10-15 times of the gross salary, however the amount provided by private banks is higher in comparison to Govt banks. Some Non Financial Companies are providing higher loan amounts by charging higher interest rates.
A business person can avail personal loan by maintaining the current account of business well. Banks also provide business loan by mortgaging security against loan. Private companies and banks generally have pre approved loans which one can avail without providing any security and hassle free.
Get HDFC Credit Card and read everything about HDFC Credit Cards
One can avail personal loans against Fixed Deposits, Life Insurance Bond, Jewelry, KVPs and post office deposits. However, You can avail loan against FD or Loan against valuable asset up to 90-95% of the deposit.
Calculate Personal loan EMI
The personal loan is generally provided for a shorter period, which can be from 3 months to 5 years. You can calculate personal loan from the BankWire EMI Calculator.
Most preferred personal loan banks in India
SBI Personal Loan, HDFC Personal Loan, BOB Digital Personal loan, Canara Personal loan, Axis Personal loan
To conclude, personal loans are one of the loans which are instantly provided by some companies. Instant personal loan can help you in many ways as Lenders do not check end use of loan. The personal loan market has grown very rapidly in India and there are a lot more opportunities in the segment.
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