What is a personal loan and how does it work?
How do personal loans work? Personal loans are a type of installment loan. That means you borrow a fixed amount of money and pay it back with interest in monthly payments over the life of the loan — which typically ranges from 12 to 84 months. Once you’ve paid your loan in full, your account is closed.
What is meant by personal loan?
A personal loan is a loan that does not require collateral or security and is offered with minimal documentation. You can use the funds from this loan for any legitimate financial need. Like any other loan, you must repay it accordance to the agreed terms with the bank.
What is included as a personal loan?
A personal loan is money you borrow for just about any purpose, including debt consolidation, an unexpected medical bill, a new appliance, a vacation, or even a student loan.
What can you use a personal loan for?
- Consolidate debt to pay off bills. Consolidating debt is one major reason to borrow a personal loan.
- Cover unplanned emergency expenses.
- Make necessary home repairs.
- Finance funeral expenses.
- Help cover moving costs.
- Make a large purchase.
What is the best place to get a personal loan from?
Where to get a personal loan. When you need a personal loan, there are three primary ways to find them: banks, credit unions and online lenders. Banks are for-profit financial institutions that offer personal loans and other products, and they may be the first place that comes to mind.
Which bank is best for personal loan?
Comparison of Best Personal Loan Providers in India
| Name of the Lender | Loan Amount | Interest Rate (p.a.) |
|---|---|---|
| State Bank of India (SBI) | Up to Rs. 20 lakh. | 9.60% onwards |
| HDFC Bank | Up to Rs. 40 lakh. | 10.50% onwards |
| ICICI Bank | Up to Rs. 25 lakh. | 10.50% onwards |
| Axis Bank | Up to Rs. 15 lakh. | 11% onwards |
Which bank gives cheapest personal loan?
Current Interest Rate on Personal Loans
| Bank | Interest Rate (p.a.) | Processing Fee |
|---|---|---|
| State Bank of India | 9.60% p.a. – 15.65% p.a. | Up to 1.50% |
| ICICI Bank | 11.25% p.a. – 21% p.a. | Up to 2.25% |
| HDFC Bank | 10.75% p.a. – 21.30% p.a. | Up to 2.50% |
| Yes Bank | 13.99% p.a. – 16.99% p.a. | Up to 2.50% |
How can I get a 20000 personal loan?
How To Apply For Personal Loan With Salary Less Than Rs. 20,000
- Share your phone number.
- Enter your email id.
- Specify your personal loan amount.
- Check the ‘I authorize’ tick-box.
- Click on ‘Apply Now’.
- Have our customer care representative get in touch with your offer details.
What is the minimum salary required for personal loan?
Personal Loan Eligibility Criteria The minimum salary for a personal loan for salaried individuals is INR 25,000 per Month (for residents of Mumbai and Delhi) or INR 20,000 per Month (for all other locations).
How many personal loan can I take?
However, most banks and NBFCs limit a personal loan at Rs. 25 lakh to an individual. Lenders evaluate the monthly income of loan applicants and the potential growth in it before approving a loan. In most of the cases, individuals are eligible for a personal loan amount of up to 30 times of their monthly income.