A few decades ago, borrowing a loan was not only difficult to get but was also considered an awkward social norm. People would shy away from loans because of the complicated process involved. But technological revolution in the financial world and how we can use loans to meet our immediate financial requirements has made people embrace loans like never before. Among the different types of loans there in the market, personal loans are one of the most simple and easy way to get immediate cash, as most types of needs are considered suitable for this loan. Be it a wedding, a medical emergency or world travel; personal loans is here to cover it all.

Personal Loans are unsecured loans, as generally there is no collateral required for them and is considered a risk loan type. While on the plus side it is remarkably easy to get this loan, the higher rate of interest may be one of the downside of personal loan.

Basic Requirements For A Personal Loan

☞ Good Credit History – One of the top requirements to be eligible for a personal loan is to have a good credit history with no defaults. Since personal loan is an unsecured loan that requires no collateral to be submitted, banks are essentially giving you the loan at a high risk. Therefore, to ensure that the bank is convinced of your repayment capability, your credit score is checked.

☞ The Better The Credit Score, the Better Chance Of A Low Interest Rate – If you have been paying your monthly EMIs on other loans and credit cards on time and have never defaulted, you have a chance of a much higher credit score. One of the most important factors to determine a lower interest rate offered to you is your credit score. The higher the credit score, the lower interest rate can be offered to you.

☞ Income and Stability –Your income should be sufficient to be able to meet the minimum requirement. Depending on the personal loan amount that you wish to take, your income will be matched. Other factors such as the stability in your job, the number of employment years will also determine your loan approval.

☞Each bank has its own age limit criteria however; most banks provide personal loans to people falling under the 21-65 years of age bracket.

☞ Identity Proofs are required and submission of a PAN card copy is mandatory.

Features of Personal Loans

Personal loans are highly flexible in nature and can be taken for variety of personal needs. They are approved much quicker than other loan types and do not require a guarantor or a collateral. They, however, come with a much higher rate of interest than other loan types with some rates being as high as 25% per annum. While it is easier to obtain these loans with a quick disbursal, the eligibility criteria is strict and makes it difficult for low income groups to be easily qualified. The personal loan amount totally depends on your current income, your spending and savings, credit score, age factor, professional, educational qualification. Personal loans offer a flexible repayment term that can be anywhere around one to five years and some banks also offer prepayment with no additional costs.

Personal Loan Tips

Each application has a different scenario and the terms can be subject to negotiation. If you have a solid repayment history and a good credit score, you can negotiate on personal loan interest rates, waiver of processing fees and other charges. Be careful and read the fine print at the time of application and go through the terms and conditions of your loan thoroughly. Ask the bank representative if you have any doubts and ensure that your negotiations are written on the agreement letter before you sign it.

Personal Loans @ Letzbank

Letzbank provides you with the best loan offers from all top banks in India. Through its direct collaboration with banks, Letzbank lets you compare your loan eligibility and also apply for the personal loan on our website.

[button class="btn-primary" link = "https://www.letzbank.com/bank-search/personal-loan"]Check Your Eligibility[/button]

: