We all have specific financial goals for our future. It could be buying a new phone, funding our child’s education, or going debt-free. In any case, we need to have enough funds to fulfil these desires. But given our monetary responsibilities, it becomes challenging to save up funds and achieve these aspirations.
This is when a Bank Personal Loan serves as a viable option. It is an amount of money lent to you by the bank that can be used for a host of personal reasons. The repayment structure of this Loan depends on various factors, like the Loan amount, interest rates, tenure, etc. However, it is relatively easy to follow through if you choose a reliable lender. Here is what you need to know about this Loan:
Eligibility criteria
Like other debit products, a Personal Loan also mandates you to meet specific requirements. These differ from bank to bank. However, here are the basic ones for your understanding:
- You should be between 21-60 years of age
- Your income needs to be at least Rs. 20,000
- Your Loan amount should at least be Rs. 5,000 or above
- The Loan term should be at least one to three years & above
- Your CIBIL score should be 750 or more
To learn more about your eligibility status, refer to your lender’s website or Banking app. It should have a list of criteria for the Loan.
Personal Loan interest rate
In exchange for lending the desired amount, you should repay the same in Equated Monthly Instalments within the specified tenure. You must pay this along with the Personal Loan interest rate, an additional component added to your EMIs each month. The interest rate value depends on various factors:
- Credit scores
- Income
- Loan amount
- Loan Type
- Loan provider’s policies
- Tenure
It is wise to assess these factors to gauge the Personal Loan interest rate. That way, you can plan out your finances better.
Benefits
Availing yourself of a Personal Loan has its benefits, some of which include:
- Instant disbursal of the amount
Reliable banks disburse the Loan amount to your online Bank Account within 24 hours of successful verification.
- Hassle-free processing
If you follow the specified steps and submit the necessary documents, the Loan processing should not take much time. Besides, online platforms make the application process relatively seamless. You also have the option of seeking instant customer support.
- No collateral needed
The best part about a Personal Loan is that you do not have to present any collateral. You simply need to meet the eligibility criteria to apply.
- No interference in Loan utilisation
You can use the borrowed amount as you want. Whether for your personal needs or immediate financing, there is no imposition on how you use the money. You also need not specify about it.