Apply For Personal Loan in Delhi

Get Persona Loan and fullfill all your multiple needs.

Apply For Personal Loan in Delhi

"Get Persona Loan and fullfill all your multiple needs"

For your different personal financial needs the most appropriate way of generating liquidity is a Personal Loan which is easy to pay through EMIs (Equated Monthly Installments) at an affordable rate of interest (ROI). Personal loan can be used to either fulfil or bridge any shortage of fund for any emergency, weddings, family purchases, white goods purchase during festivals, medical exigency, house purchase, car purchase, child education, special travel requirements, down payments, renovation, repairs etc. etc.

Read on to know more-

What is the definition of a Personal Loan?

Basically it’s a loan taken by a person from a financial institution like bank or non banking financial institute to fulfill any fund requirement.

A personal loan is not given against any collateral or asset. Means in other loans there is always securing of loan against another asset for understanding in case of home loan property is kept on mortgage, in case of car loan the vehicle is on hypothecation and in case of loan against gold some jewelry is pledged. That is why if you compare with these loans against other assets (secured loans) you will find interest rates higher in personal loans but remember you are not pledging or blocking any of your assets to take a personal loan, which gives you more freedom and flexibility. The purpose of loan and utilization of funds can be at your own discretion whereas if you take a secured loan it is for a specific purpose like buying home or car and you can’t use funds for anything else.

The financial institute will ascertain the loan amount and duration based on an individual’s credit worthiness keeping his source of income like salary, employer details, credit repayment history, assets and residential status.

But one thing is common for all loans whether secured or unsecured that is if you take a loan you must make sure that you pay all EMIs and pay the debt back as per schedule. If you will default on EMIs or payments your credit score / credit rating will be adversely affected and that will make it difficult for you to get new loans or credit cards. However if you pay EMIs and pay the loan back your credit score will increase and it will be easier to get bigger loans and more credit limit on credit cards from more institutions in future.

For what objectives & reasons one can take Personal Loans?

Personal loan can be used to either fulfill or bridge any shortage of fund for anything like new car purchase, home renovation, new house purchase, marriage in family, honeymoon travel, electronic goods purchase, foreign travel, medical emergency, festival shopping, higher education expenses, business expansion, new business investments, support to family and many more you can think of based on your need. You can decide your own need and purpose the bank or financial institute has no objection to it that’s why it’s called a ‘Personal’ loan. Bank will not be checking on your spends from loan amount.

For what period can I take loan?

The duration of loan can be from 12 months to 60 months i.e. 1 year to 5 years period. The period is fixed accordingly based on banks policy and approval on your loan application.

Who is eligible for a Personal Loan?

The criteria for granting loans is different from bank to bank but some key factors that are commonly considered are age group, residence address, source of income, assets owned, loan repayment capacity, company you are employed in and past credit history. You should have steady regular source of income to avail a loan as personal loan are paid back in EMIs and that can only be paid by individuals who have recurring income source.

How much time will it take for disbursal of my loan?

Bank will disburse your loan amount within 7 working days of receiving the loan application. After completion of paper formalities and approval you will receive direct electronic credit in your bank account or in some case through a cheque or demand draft.

What is the minimum salary one should have to apply for personal loan?

An individual’s minimum monthly salary should be Rs30, 000/- to be eligible for considering a personal loan application.

What is the maximum loan amount I can get?

Your loan amount eligibility depends on your current credit standing. Your existing loan amounts and EMIs are also considered while processing any new loan application. The basic criteria followed by most financial institutes is that total loan amount is divided in to EMIs with interest component and the EMI should not be more than 50% of your monthly income. In case you are a self employed individual your Business P&L statement will be evaluated to determine your profit earnings and that will also be offset against any business liabilities you may have.

What is the minimum amount that one can apply for?

The lowest principal loan amount in case of a personal loan is Rs 50,000/-

What are the criteria of deciding an individual’s maximum loan eligibility?

All financial institutes will try to ascertain that whether or not you will be able to pay back the loan taken and for that the maximum loan amount becomes very important. The criteria for maximum loan amount eligibility is different from bank to bank but some key factors that are commonly considered are as follow- Current Credit Score, Current Loans and liabilities status, credit history, credit card dues status. If your current liabilities are higher than your assets and income sources you will be eligible for a lower maximum loan amount. If you have less liabilities and higher income sources with good repayment track you will be eligible for a bigger maximum loan amount.

What is the rate of interest on Personal Loan?

Since a personal loan is not given against any collateral or asset you will find interest rates higher in personal loans but remember you are not pledging or blocking any of your assets to take a personal loan, which gives you more freedom and flexibility. Interest rate in a personal loan still will vary from 10.99 to 20 % based on individual’s credit worthiness and other criteria like Current Credit Score, Current Loans and liabilities status, credit history, credit card dues status.

What Charges do I pay?

There are processing fee charges payable to lender (Bank or NBFC) by the loan seeker. This fee varies from 1% to 2.5% of principal amount approved for loan disbursal.

Can I take a loan with co-applicant?

Your co-applicant for loan can be a family member like parent or spouse. This means that the credit rating of both the applicants is utilized to calculate loan eligibility and if the co applicant has good credit score the loan amount sanction will be higher, However if the co applicant credit score is not favorable then you will have adverse impact on your loan application.

How will the Loan be repaid?

The loan repayment is through EMIs (Equated Monthly Installments). You can give an ECS mandate to your bank in favour of lender or make payments through cheque. This is dependent on bank policy while disbursal of your loan.

What are different Interest Rate Types?

Interest rates can be fixed or floating. In case of a fixed interest rate the EMI remain same unchanged throughout the loan tenure but in floating rate interest may change on 6 months or 12 months basis based on change in base lending rate. The EMIs reduce as it follows the reducing balance method of calculating interest payout.

Interest Rates can further be on Reducing Basis or Flat Basis- In Reducing Basis the borrower only has to pay interest on outstanding principal amount i.e. the paid principal amount in EMIs is reduced from the total due. In Flat rate of interest there is no reduction in interest component even after continuous EMIs payment. The borrower will be paying same interest through EMIs on entire loan balance.

Can I make prepayment of loan?

Prepayment of loan is not advisable in case of personal loans as the penal charges are heavy. Instead you should plan your loan amount and tenure while applying for loan so that you make most out of your disbursed loan amount. However banks do allow prepayment after six months but there is little benefit in that option.

What happens if I make Loan Payment Default?

If you take a loan you must make sure that you pay all EMIs and pay the debt back as per schedule. Bank will pursue recovery of debt as per the legal agreement you signed while seeking loan. Further if you will default on EMIs or payments your credit score / credit rating will be adversely affected and that will make it difficult for you to get new loans or credit cards. However if you pay EMIs and pay the loan back your credit score will increase and it will be easier to get bigger loans and more credit limit on credit cards from more institutions in future.

Can I transfer my loan from existing to new lender?

Yes, this option is offered by select banks and NBFCs. The present lender is paid off by the amount from new lender and the remaining loan amount is then transferred to new lender. This option is availed in case the borrower is getting lower rate of interest and processing fee from the new lender. However transfer fee and prepayment charges are to be borne by the borrower while availing this option. This option needs to be evaluated before availing as the saving needs to be worth transferring the loan from one lender to the other.

What is the CIBIL Rating?

CIBIL Report is also known as CIR -Credit Information Report. It is numeric expression of your credit worthiness, the credit score range is from numeric 300 to 900. The closer you are to 900 numbers in CIR the better it is, this means you have better capability to repay the loan you take and credit institutions will be at lesser risk with their loan investment ion you. However if you have lower numeric rating then the risk for financial institute increases and so interest rate they may charge will be higher and loan amount they will offer will be lesser. Some key factors that affect your CIBIL rating are as follow- age group, residence address, source of income, assets owned, loan repayment capacity, company you are employed in, past credit history Current Credit Score, Current Loans and liabilities status, credit card dues status. If your current liabilities are higher than your assets and income sources you will be eligible for a lower maximum loan amount. If you have less liabilities and higher income sources with good repayment track you will be eligible for a bigger maximum loan amount.

FAQ’s

What is a Personal Loan?
Simply put, it is an unsecured loan taken by individuals from a bank or a non-banking financial company (NBFC) to meet their personal needs. It is provided on the basis of key criteria such as income level, credit and employment history, repayment capacity, etc.

Unlike a home or a car loan, a personal loan is not secured against any asset. As it is unsecured and the borrower does not put up collateral like gold or property to avail it, the lender, in case of a default, cannot auction anything you own. The interest rates on personal loans are higher than those on home, car or gold loans because of the greater perceived risk when sanctioning them.

However, like any other loan, defaulting on a personal loan is not good as it would reflect in your credit report and cause problems when you apply for credit cards or other loans in future.

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