Personal Loan

Personal Loan

• A personal loan is a financial instrument that helps you avail funds for a multitude of uses. Like any regular loan; when opting for a Personal Loan you are advanced a specific amount of funds at a set interest rate and can clear it via fixed repayment tenure.
• However, a few aspects of a personal loan may prove more advantageous than other loans lie such as:

1. It does not lock in any of the applicant's assets. As opposed to a Home or Car Loan which locks in the asset against which the loan is sought; Personal Loans provide advances for your needs without any collateral.
2. Unrestricted usage: much like the name states. A personal loan is to be availed in case one needs a financial lump-sum for any personal use. Be it due to a medical/social event, lifestyle needs such as home repairs/renovation, or even to consolidate existing loans.

How to Improve Personal Loan Eligibility?

• Build a good CIBIL score: Try to manage a CIBIL score of more than 750.
• Do away with past debts: Pay off any existing liabilities, loans, or pending credit card bills, on time. Try to maintain a spotless repayment history by avoiding defaulting on payments.
• Try not to avail various loans simultaneously: Always apply for a business loan that is best suited to your financial requirements. Filing multiple loan applications affects your creditworthiness.
• Opt for longer loan repayment tenure: Choose longer loan tenure. It will enable you to repay comfortably over an extended period. Higher repayment tenure also reduces your EMI amounts.

Eligibility Criteria for Personal Loan for Individuals:

• Age Limit : 18 to 65 Years
• Minimum Income : Rs 1,00,000/-
• Nationality : Indian/NRI
• Minimum Cibil Score : 750 or More