- July 14, 2020
- Posted by: asmaenterprise
About Personal Loan
A personal loan is usually of a smaller amount than a mortgage and used for personal purposes, instead of commercial/business needs. It includes loans for reasons like going on vacation, wedding, buying of new furniture and various other needs that arise for an individual.
Characteristic of Personal Loan
- Personal loans are usually “Unsecured Loans”, which means they are offered without any collateral in return. Such loans are mainly based on the credit history of the customer who hasn’t defaulted on his/her credit card payments.
- The interest rates of Personal Loan are allotted based on the salary of the customer, amount being borrowed and credit history, amongst others
- A short-tenure loan, the repayment period are usually of the time period of 1-5 years
- Requires the least bit of paper-work and is usually approved within 48 hours of application submission
- Additional to the processing fee, charges for late payment penalty, pre-payment fee, administration charges and cheque bounce charges are also included in the personal loan
Eligibility Criteria of Personal Loan
- Any Indian citizen in good standing who is salaried, self-employed or business person with regular source of income can apply for a personal loan.
- The applicant should be above the age of 24 years
- Should be currently employed with existing organization or been involved in your business for a specific number of years.
- Professional stability and savings history play a major role in approval of the loan, especially minimum required monthly salary and repaying capacity
- Bad credit history would prove to be a put-off, especially anytime within 3 months prior to applying for personal loan.