Personal loan offers comes with many attractive features and benefits to make it easier for a wide range of customers to borrow with ease. These are as follows:
1. Loan Amount
The minimum and maximum loan amount offered by banks and NBFCs under personal loan schemes varies from Rs. 10, 000/- to Rs. 100 Lakh. The loan amount a lender sanctions to a borrower depends on repayment capability, repayment history on loans & credit cards and stability of income of the borrower. Your loan eligibility may vary with between different lenders based on risk-taking appetite of the lender.
✔ Tips for Higher Personal Loan Eligibility
If you are looking for a higher loan eligibility you should go with higher tenure loan, Banks and NBFCs offer a tenure up to 5 years. You can also pay off your shorter-term loans and credit card outstanding’s before applying with a personal loan for a higher loan eligibility.
2. Personal Loan Interest Rate
The minimum interest rate banks offer for a personal loan is 10. 25% percent and it goes up to as high as 32-36 percent. The rate of interest a Bank or NBFC offers to a particular borrower depends on overall profile of the borrower including - category of the company a borrower is employed with, net take home salary, repayment history on existing loans and CIBIL score (Credit bureau score).
✔ Tips to Get a Better Interest Rate
To get a lower interest rate from a Bank for your personal loan, you should maintain a good repayment track on all your loans and credit cards. Compare interest rates of banks at vservfinancial.com, to get the best interest rate offer on your loan.
3. Loan Tenure
Financers are offering flexible tenures for PL offers, depending upon a loan applicants age at the time of applying for the loan and income. Banks & NBFCs offer a tenure from 12 months to 60 months.
✔ Tips to get a Higher Tenure for your Personal Loan
If you want to keep the EMI of your loan lower, than you should opt for a higher tenure loan and if you want to minimize the interest outflow on loan in that case take a smaller tenure loan. compare tenure of personal loan offer at vservfinancial.com
4. Quick Processing and Turn Around time
Turnaround time or processing period for a personal loan varies from 2 to 5 working days based on availability of your documents and your overall profile.
✔ Instant personal loan at quickest possible time
you can get a quickest loan by applying online with vservfinancial.com and submitting all the required documents as soon as you apply for the loan, your loan can get approved the same day and the disbursal can come into your account in 1- 2 working days.
5. Personal Loan Processing Fees
Processing fees ranges from 1% to 3% of the loan amount plus GST as applicable. The processing fees a lender offers you on your personal loan depends on the employer you work with, your income bracket and your overall credit profile.
✔ Tips to Get Lowest Processing for your personal loan
Before Apply for a personal loan compare personal offers from all the top lenders with processing fess offers. Apply online at vservfinancial to get the lowest processing fees.
6. Foreclosure charges on Personal Loan
Financial institutes charge an early closure fees/penalty in the rage of 2% to 4%, depending on the numbers of EMIs you have paid after taking disbursal of the loan and before you apply for the foreclosure of the loan.
✔ Tip To get Minimum or No Foreclosure Charges
Before taking disbursal of your loan check with your lender if there are any foreclosure charges on loan or the same can be waived off. There are very few lenders like Axis Bank which does not charge any pre-payment penalty on your personal loan after you have paid a specific number of EMIs.
7. Flexibility to use the loan take as personal loan
A financial institute gives you complete flexibility & freedom to use the funds raised by taking a personal loan. Funds can be used for multiple purposes.
✔ End use of Personal Loan
Family wedding - Funds borrowed as personal loan can be used for wedding of a family member or friend or self.
Purchase of consumer goods - loans can be taken for the purchases of consumer durable goods like TV, fridge and other household gadgets etc.
Higher Education of a family member
Home renovation, construction of new house, plot purchase (where home loan may be not available)
Medical emergency in family
Family holiday in Europe or US or other exotic location.
Using personal loan to buy a car or an imported bike, either because of cheaper interest rate and flexible repayment period in personal loan than a car or bike loan.
Using personal loan to buy a car or an imported bike, either because of cheaper interest rate and flexible repayment period in personal loan than a car or bike loan.
Debt consolidation - closing your multiple loans and or credit card outstanding’s which may be running with higher interest rates than the personal loan rate of interest.
Paying off loans taken from taken from friends and family and others.
8. No Collateral Security Required
A personal loan is unsecured in nature; it simply means a lender offers it to a borrower without keeping any fixed or movable asset as collateral/security. It is sanctioned only on the basis of financial statements and repayment capacity of the of a loan applicant along with repayment track on loans/cards.
9. Personal Loan Repayment
Since a personal loan is offered for a fixed term (tenure) it’s also called as a term loan. Term of the loan is fixed at the time of sanction of the loan and it is in the range of 1 year to 5 years. The loan is repaid using EMIs (Equated monthly installments). An EMI consists of two components: one is principal amount and the other is interest charged on current outstanding amount. Initially, when you start repaying your loan, the interest component of the EMI is higher and principle component is lower. As the loan matures, the interest component keeps reducing and the principle component increases.
10. Personal Loan EMI
Higher EMI : If tenure is short, the EMI amount is higher
Lower EMI :If tenure of loan is long then the EMI is lower
Interest Rate: Lower the interest rate, lower will be the installment
