If you are in need of cash but do not have any asset to pledge to obtain the loan, then you can consider availing a personal loan. It is unsecured in nature with minimal documentation and less paperwork. It can get approved with 48 hours.
To get a personal loan the first thing is proper planning. Know what you need to do with the loan amount, how will you repay the loan amount, what will be the EMI amount, what will be the interest rate given to you, whether the rate of interest will be fixed all through or floating, etc. generally, a personal loan amount ranges from 50,000 to 20 lacs. It depends upon your monthly income or salary as to what should be your EMI. EMIs can be calculated with the personal loan EMI calculator or with professional EMI calculators given by the banks or financial institutions. This will help you to know the exact figure you need to save every month in order to clear payments.
Some advantages/ benefits for personal loans:
A loan with no collateral security
Personal loans are generally having no collateral security; it plays the role of a secured loan. Here, when the bank provides you with a loan of your required amount, it doesn’t ask you to pledge any asset or property or any valuable item against the money.
Easy documentation
Personal loans don’t require heavy and lengthy paperwork. The procedures of application and sanctioning personal loans can be completed with minimal paperwork. In secured loans, this is the best advantage.
No limitation on end-use of loan
All that the bank or creditors are concerned with is whether you are able to repay and whether you are repaying the borrowed money on time. They see whether you pay the amount with the given interest rate according to the terms and conditions already stated and disclosed by the bank. The banks want you to follow the procedures, therefore they verify all about your salary, business or employment, your location, etc.
Loan amount
The loan amount can range from 50,000 to 30 lacs. You can select any amount that is required for you to fulfil your personal needs, not denying the fact of paying the amount back with complete capacity and amount present with you.
Comparing personal loans
Comparing personal loan interest rates with other banks or institutions is mandatory so that you easily save money and can know the market rate of such interest provided to you. Personal loan interest rates should be compared on the basis of your loaned amount and salary, income, profession, the etc personal interest rate is generally granted from 12% to 25%.
Apart from comparing interest rates, you also need to look in for the other fee or charges that are applicable along with the interest rates. The prepayment fee, documentation fee, service charges, etc can shell out your pocket, so be careful and make the most effective and affordable deal.
Whenever you are presented with lots of options and different company’s personal loans with different interest amounts, tenure, etc you should not immediately nod your head towards the most attractive package. Think a while, compare these plans with the most reputed bank deals and offers, see whether you are getting an option that matches all your needs, whether you will be able to handle the loan amount you have accepted, and then move on with it.
Read Other Related Articles:
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| When To Take A Personal Loan? | |
| Consider these 4 things before taking a Personal Loan | Personal Loan myths |
| When Not to Get a Personal Loan? |
