There comes a time in almost everyone’s life when the need for having access to more money than they have arises. Most people do consider taking a loan, but that’s not to... Read more »
The rise of investments in the personal lending industry led to rapid digitisation, encouraging the growth and development of the personal loaning industry. This in turn gave rise to a new breed... Read more »
Not everyone is fortunate enough to have enough funds to meet financial needs. Many people, at some stage of their life apply for personal loans to finance certain events such as medical emergencies,... Read more »
Mr. Rohan took a home loan to purchase a new house property and started paying EMI’s of the same. After five years his daughter’s marriage got fixed and he could not manage... Read more »
Personal loan is a type of loan which provides finance for various financial purposes without any security. Lender sanctions personal loan based on the ability of the borrower to repay the loan.... Read more »
A personal loan is an unsecured loan.
It is a loan type that does not need collateral and a financial institution offers this loan with minimal documentation. It helps to meet your current financial needs. There is no bar on the end use of a personal loan.
You can use it to fund a holiday, pay for unforeseen medical expenses, buy a car, pay for your child’s higher education, and renovate your home. A personal loan can be paid back in equal monthly instalments (EMI’s).
Banks and other financial institutions offering personal loans only look at whether or not you match the eligibility criteria in terms of your age, income, occupation, capacity to pay back the loan, and place of residence.
Usually, banks restrict your loan amount in a manner that it does not exceed 40-50% of your monthly income. However, since personal loans are unsecured loans, they come at comparatively higher interest rates.
You can also jointly avail this loan with a family member such as your spouse.