What is Personal Loan?
When someone borrows a fixed amount of money for personal purpose then it is known as a personal loan. You can get a personal loan from a bank or online lender. Personal loans can either be secured or unsecured, however, secured personal loan requires some type of collateral.
Types of personal loan:-
This type of loan offers you to take care of your festive expenses, it is usually a small amount of money, so that unavailability of required money does not spoil your festive mood. These types of loans have a low limit of borrowing so you can borrow a small amount according to your need and they also offer you a lower interest rate and the low processing fee.
This loan intention is to help couples and their families to deal with the pressure of wedding expenses. It can be used in major expenses like catering and decoration, hotel bookings, jewellery shopping, etc. During the wedding season interest rates for this loan are usually higher than the offseason interest rate.
This loan is intention is that if you have already taken a personal loan and you need more money due to some other financial emergency, then you can take this type of loan. This loan is given after 6- 12 months and has a lower interest rate and a features tax benefit is an easy way to handle difficult times.
If you want to travel without affecting your monthly budget or savings then you should go for this type of loan. The credit cards can also do this task but a holiday loan can make the funds easily available for your travel plan with a lower interest rate, however, the loan amount depends upon your credit score and the destination where you want to travel.
This loan is especially for helping them in many types of agricultural activities like crop cultivation or buying agricultural machines and tools, animal husbandry. The interest rate for this loan is very low.
In case of an urgent medical expenditure, if you do not have insurance, apply for a medical emergency loan. With instant approval and low personal loan interest rates, this loan can be of great help.
How do Personal Loans work?
The personal loan works the same way as most of the other loans. Firstly you have to apply for a loan then submit the document then the bank will check your creditworthiness and the document then they will give you a loan offer, if you accept the offer then the bank will transfer the funds into your account. The banks give the borrower a CIBIL score which defines your record of paying credit card bills and loan repayments on time.
- The candidate should have self-employed or salaried or professionals like Doctors, CA, CS, Architects.
- The candidate age should have 21 to 60.
- The candidate should have minimum Rs.5,000 Net Monthly Income.
How to apply for a Personal Loan?
There are two ways to apply for a personal loan
- First of all decide type of personal loan and the amount how much you need.
- Go to the https://www.bankagent.in or bank site by which you want to take a loan.
- Choose by which bank you want to borrow money by comparing on https://www.bankagent.in
- Fill in your personal, financial, and employment details.
- Select the loan amount and tenor that you require.
- Submit the required documents with our representative, and after that, our representative will get in touch with you.
- After verification of your document bank will deposit a loan amount in your bank account.
- First of all, decide how much money you need.
- Find the right type of loan on bankagent.in .
- Decide the right bank by comparing on bankagent.in .
- Go to the bank by which you want to take a loan.
- Fill the form with all the information which is required in the form.
- Submit all your documents which is required.
- After all this process you will get approved for the loan.
Documents Required for Personal Loans:-
- Identity proof:- Anyone from Aadhar card/ PAN card/ voter id card
- Address proof:- Passport/utility bills
- If salaried:- Last 3 months Bank Statement.
- If self-employee:- Audited financials for the last two years, Last 6 months Bank statement, Proof of office ownership and Office address proof.
Benefits of personal loan:-
- A fixed-rate of interest
- No Collateral Required
- Simple Documentation Process
- Unlike a home loan, it can be used for any purpose
- No guarantor required
- All your information remains safe and secure
- You can manage your personal loan online by using the application.
Top banks with a lower interest rate for a personal loan:-
|Banks||Personal Loan Interest Rates|
|SBI (State bank of India)Personal Loan||12.50%|
|HDFC Bank Personal Loan||11.25%|
|ICICI Bank Personal Loan||11.25%|
What CIBIL /Credit score do you need to be eligible for a personal loan?
Generally, you should have at least 750 or above to get approval from banks for a loan, the higher your score, the better are your chances of being approved. A credit score of 750 denotes the record of making timely repayments over a substantial period of time. By good CIBIL it easy to get approved in comparison to low CIBIL score.
Some important tips about a personal loan:-
- Always Choose Loan Amount as per Your Repayment Ability
- Always Submit Loan Related Document Carefully. You should read carefully all printed terms and condition
- Always fix your EMI as per your loan amount before finalizing your personal loan
- Every bank charge processing fees against the availing amount, customer should compare applicable fees of other banks.
- Customers should always Compare Multiple Personal Loans interest rate and other charges.
How to avoid personal loan rejection?
Loan approval entirely dependents upon lenders, so there is no full-proof formula to get your loan approved, but you can follow these steps to prevent from all possible reasons of rejection:
- Ensure you meet the bank or NBFCs eligibility criteria.
- Check your credit report for any incorrect information.
- Avoid multiple loan applications at once keep your credit utilization ratio below 40%.
- Verify information which is mentioned in the loan application form.
- Bring down your leverage levels by trying to pay off some of your debt.
Pre-approved personal loan:-
Banks generally offer a pre-approved personal loan to customers who have a good credit history. It generally offers a lower interest rate. If you don’t have good credit score it doesn’t mean that bank will not pre-approve you, some lenders pre-approve a loan to their clients depending on parameters such as earnings and investment record.
HDFC Bank key highlights:-
- The HDFC personal loan is best for self-employed.
- It gives an attractive interest rate on personal loans for a self-employed.
- There is a flexible tenure of 5 years.
Citibank key highlights:-
- Low-interest rates for both employed and self-employed candidates
- The loan amount will be sent within 48 hours in your bank account
- Minimum paperwork for current Citibank clients and quick approval.
ICICI Bank key highlights:-
- The ICICI bank is best for NRI’s
- Bank offers to the NRI’s collateral-free loan and tenure up to 36 months.
- Minimum paperwork plus easy method for instant disbursement.
Standard Chartered Bank key highlights:-
- The standard chartered bank personal loan is best for short term requirements.
- The standard chartered bank offers to the customer attractive interest rate
- You will get quick personal loan online approval by applying online
- Repayment tenure up to 60 months
Tata Capital Bank key highlights:-
- Fast and easy borrowing at low-interest rates
- There is a flexible EMI option
Kotak Mahindra Bank key highlights:-
- There is minimal paperwork and faster process
- Low-interest rate and easy repayment options
- Easy and quick loan approval
SBI (State bank of India) key highlights:-
- Competitive interest rate
- The loan can be availed by both self-employed and salaried
- Loan tenure offered by the bank is 6 to 48 months
Bajaj Finserv key highlights:-
- There is minimal paperwork and faster process
- Competitive interest rate
- The loan can be availed by both self-employed and salaried
- Processing Fees is Starting from 1.50%, Up to 3%
PNB key highlights:-
- Loan tenure offered by the bank is 12 to 60 months
- The interest rate ranges from 12.00% to 15.00%.
- Processing Fees is 8% + taxes.
How to Get Approved for a Personal Loan with Low CIBIL Score?
There are some tips to get a personal loan with a low CIBIL score.
- If your CIBIL score is low you can apply for a secured loan.
- Check with your partner or your family member’s credit score if they have a good credit score then you can take a joint loan.
- By providing a guarantor you can avail a personal loan. If you manage to get a guarantor who has a good CIBIL score there is a high chance of getting a personal loan approved.
- There are some lenders which agree to give a loan with low credit score, however, they usually charge higher interest rates.
How to choose the right personal loan?
- Usually, borrower approaches the bank in which their savings account is, so don’t do this and always compares personal loan interest rate in all banks and look which bank gives the lowest interest rate. After comparing the interest rate choose the personal loan with a minimum interest rate.
- Interest rates are not the only thing to check when selecting the right personal loan. You should also look at the bank’s different charges.
- Always look at the pre-payment charges. Most of the banks charge pre-payment charges this means that if you want to pay off your debts before the tenure ends, you will have to pay a small fee. There are some banks which don’t charge for prepayment so try to choose those banks.
- You must be sure that you can make regular repayments to close the loan on time and without penalties so always find out how much your EMI is going to be.
What factors can affect your CIBIL score?
- If you don’t pay your credit card bills before the deadline, they can also have a negative impact on your credit history.
- You may think it’s enough to pay just the minimum due on the card or slightly more than that to keep things on track but it’s not this act can affect your CIBIL score in a negative way.
- It may sound like a good thing that applicants don’t have any loans or credit cards at all but it is not because if you have never taken any loan or credit card it means your CIBIL score is zero. With the zero CIBIL score, there is a lot of chances to get rejected for a loan.
- Because personal loans are unsecured loans, taking too many personal loans may lower your credit score.
- If you miss an instalment of your loan, it may be considered bad financial management, which implies your credit score will decrease.
- If you reach your credit limit too often it considers as you can not manage money wisely and your CIBIL score will reduce.
- If you apply for a loan or credit card and your application is rejected, then you will apply again and being rejected very often will reduce your credit score.
Instant Personal Loan
Instant personal loan is a personal loan that is immediately approved by the customer. The instant personal loan takes about 1 hour to 24 hours to get approved. This is an unsecured loan, so you don’t have to give any collateral. It has a flexible repayment that makes it easy to pay off the borrowed amount.
List Of Applications By which you can apply for an instant personal loan:-
- Money View
- Flex Salary
Benefits of instant personal loan:-
- In this loan, you have to submit all your documents online, which makes the process fast and you are quickly approved for the loan.
- Its biggest advantage is that you do not have to pledge anything for getting approval for the loan because this is an unsecured loan.
- Most banks give approval for a loan in 2 to 3 minutes, due to which customers don’t have to wait for getting approved and meet their needs
- This is processed online, so you do not need to go to the banks and you can get approval for the loan in 2 to 3 minutes from sitting at your home
- It has a flexible tenure so customer don’t face difficulty in repayment of the loan
- Those who have good credit scores get this loan at a low-interest rate.
How to Apply for Instant Personal Loan?
- Go to the https://www.bankagent.in/ or install any above application and open it
- Now search for instant personal loan option and click on that
- Now a form will be open fill that forms
- Submit the form and documents
- Your loan amount will be credited in your bank account within 24 hours
Document Required For Instant Personal loan:-
- Identity proof like Aadhar card, Driving licence or voter id card
- Address proof like Aadhar card, or voter id card or utility bill
- PAN card
- Salary slip or bank statement.
- Passport size photograph.
No Credit Check Loan
No credit check loan is a type of loan which can be availed with bad credit score. In this loan lenders doesn’t check borrower credit score but the interest offered by the lenders is quite high. Generally, banks offers this loan to those who have a good history in credit card bill repayment.
Types of no credit check loan:-
- Car loan
- Home loan
- Education loan
- Business loan
- Mortgage loan
How to apply for no credit check loan?
- Visit the website https://www.bankagent.in/
- Click on the loan tab
- Now search for No Credit Check Loan
- Click on apply now
- Fill the form with the required information
- Submit the form with the documents
Advantages of no credit check loan:-
- The biggest advantage of this loan is that anyone who has a low credit history can also apply for this loan.
- Its process is hassle-free and it does not require many documents to apply.
- Most banks offer a higher amount on this loan.
- The tenure period is flexible so that people have no difficulty in repayment
- Fixed interest rates
Some points you should remember while availing a no credit check loan:-
- The borrower should read all the papers and documents thoroughly before taking a loan and if there is any confusion, it should be cleared so that borrower doesn’t have to face any type of problem later.
- In case of secured loan, the borrower has to pledge any asset for the loan approval so always remember that if you fail to pay off the borrowed amount then this may lead to the loss of the asset.
- Getting approval for the loan is feels like getting free money but it is not you have to pay back the amount after some time, so always apply for the loan that you can payback.
- Some banks charges processing fee and forecloser charges so always choose the bank wisely.
Top Up Personal Loan
When a person has already taken a personal loan and he needs some more money, in such a situation he can take a top-up personal loan. Nowadays almost all banks have started providing the top up personal loan.
Banks which provide top-up personal loan:-
- State Bank Of India
- Bank Of Baroda
- Kotak Mahindra
- ICICI Bank
- HDFC Bank
Eligibility criteria for a top-up personal loan:-
- The candidate’s personal loan must be active
- Candidates personal repayment should be done timely.
Documents required for a top-up personal loan:-
- Identity proof
- Residential proof
- Salary slip of last three months
- Income details
- passport size photographs
How to apply for a top-up personal loan?
- Go to the https://www.bankagent.in/
- Search for top-up personal loan
- Click on the apply now button on the bank by which you have taken a personal loan
- Fill the form and submit it along with the documents
Interest rates of personal loan:-
|State Bank Of India||12.75% per annum|
|Bank Of Baroda||11.70% per annum|
|Kotak Mahindra||22% per annum|
|ICICI Bank||15% per annum|
|HDFC Bank||21% per annum|