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Personal Loan Funds to Meet all Personal Needs

There are various types of loans that cater to the different requirements of a person. There are various people who do not possess any collateral and therefore does not get qualified for secured loans. For such people, a loan scheme has been designed that does not require any asset to pledge. This loan is known as -Personal Loan-. It is a convenient option for the people who do not want to risk their valuable assets.

A Personal Loan is tailored to meet the personal requirements of the people. It is an all purpose loan that can be availed to meet a variety of personal works. Usually a person applies for this loan for the following purposes:

Going for an expensive and luxurious occasion.

Wedding in the family.

Paying medical bills or electricity bills.

Purchasing a new vehicle.

Home renovations or improvements.

Higher studies.

Expanding the existing business and many more.

There are many financial firms that offer personal loan to the people at an attractive rate of interest. The major banks in India that provide unsecured loan are HDFC, SBI, PNB, Fullerton, Citibank and so on. So, there are various options that come up to a person. The person should have a good plan to get the best Loan in the market. One should check and compare the various deals and make a wise decision.

As a personal loan is unsecured in nature, the lender has nothing to authenticate in case of non repayment of the loan. Therefore, it is offered at a high rate of interest as compared to secured loans. In case, the person does not refund the loan in time the lender can easily avail the money through interest rates. But, it is a better opportunity for the people who are unable to provide collateral.

The basic requirements to apply for a personal loan are income and credit score of the person. The loan is sanctioned on the basis of the repayment capability of the person. A person with poor credit and low income cannot apply for this loan. The minimum credit rating required to avail this loan is 650. The tenure of the loan ranges from 5 to 10 years. This tenure can be extended by some lenders in case of a big loan amount. The person should always go through the details of the loan before applying for it. This is because it is the person who has to pay the loan in the future.

The concept of personal loans in India

Personal loans are there to fulfil personal needs – not just any needs but financial needs which keep arising from time to time. The concept of personal loans in India was never given much importance before because of the rates of interest used to be so high that people could hardly afford to take them. As things have changed now and banks have lowered their interest rates to suit the public’s interest, more and more people make use of personal loans to fulfil all their financial requirements.

Personal loans – what are they used for?

Personal loans are used for different reasons. This depends entirely on the wants and needs of the person who is borrowing the money. Some people put it to some kind of productive use while others just use it to pay off previous dues or to celebrate lavish festivals. Aspiring business persons are usually the only ones who make use of personal loans for productive purposes. This basically means that they use if for a purposes which helps them to eventually earn it back along with something in return.

Even people who take personal loans to purchase consumer durable goods aren’t actually using the money for unproductive purposes. This is so because they invest in goods which bring them some degree of satisfaction. When it comes to utilizing the money for festivals and marriages, it comes under the category of unproductive use of funds. Besides these, there are many other purposes for which personal loans are used; all of which the bank is not really concerned about. What matters to the bank is whether the borrower is in a financial state to pay back the loan or not.

Personal loans – How can you apply for a personal loan?

Applying for a personal loan is quite easy. The best thing to do would be to first make sure of the loan schemes offered by your bank and also find out the terms and conditions which need to be adhered to in order to be eligible for the loan. This can be done in two ways: either personally or online. The personal approach of visiting a bank and finding out about the various deals available on personal loans is now in the background. Now, people prefer to do mostly everything online. Since banks have realised this too, they make things easier for the customers by providing details regarding their services through the internet.

Another way, in which you can look into the various options and deals currently available from a particular bank or financial institution, is by conveniently checking online for detailed information. Once you are sure of what you want you can apply for the personal loan directly to the bank. This will be much easier once you know the entire procedure and documents required (from the information you seek online).

Features And Documentation In Personal Loan

State Bank of India is the foremost and most trusted banks in India. SBI along with its combine branches has a distribution more than 16,000 branches, which is the largest in any network of banking. BNP Paribas, Euro Zones leading Bank and is the oldest foreign bank having an existence in India. BNP Paribas Assurance has a chief presence in Latin America, Europe and Asia and is among the top15 insurance company in Europe. The company has other joint venture in Asia in countries like Vietnam, Taiwan, Thailand and South Korea.

SBI Personal Loan is the best options for individuals who require the urgent money. SBI also provides the attractive rates and easy flexible repayment options. Below are the various features, eligibility criteria and documentation required for the loan approval.

Features: People can avail SBI Personal Loan for various different purposes or events in life such as domestic or foreign travel, medical emergencies, marriage, education, paying the bills, consolidates the debt, dream vacations, small business establishment and home renovation. The bank provides the minimum loan amount up to Rs. 24,000 in metro cities and Rs. 10,000 in semi urban or rural cities. The maximum amount is 12 times net monthly salary for pensioners and salaried person and the maximum loan amount is up to 10 Lacs.

There is no need to give any security or collateral to the person for availing Personal loan. The maximum repayment period is up to 4 years.

Eligibility: The salaried person who has two years experience from any reputed company is eligible for SBI Personal Loan. The self-employed individual with 2 years of experience is eligible for the personal loan.

Charges: The banks charge the processing fee from 2 to 3 percent of the loan amount. The banks also charge the prepayment charges up to 1% of the loan amount if the borrower repays the loan before 6 months of the loan period.

Documents Required: The documents required by the banks for salaried individual are Application form with recent two passport size photographs, latest salary slip, residence proof, ID proof and bank statement for last three months.

Self employed individual have to give the documents like the application form with 2 photographs, Income Tax Returns (ITR) for last two years, proof of Residence, identity proof and bank statement for last six months.

People can get the instant approval for SBI Personal Loan if they are eligible and provide all the required documentation to the bank.