WHAT IS PERSONAL LOAN?
Personal loan is an unsecured consumer loan which can be used by you for any purpose such as holiday trip, buying furniture, renovating house and medical emergency.You are free to
Benefits of personal loan
- No limitation on end use: – The first and the most important benefit of personal loan is that unlike home loan it can be used for any purpose. There are no limitations on the end use of the personal loan. You have any urgent requirement of funds; personal loan can be one of the easiest ways to get cash.
- Quick disbursal: – If you meet the eligibility criteria and have a good credit score, you can get personal loan in 72 hours time. Infact some of the banks provide the facility of online approval of personal loans for existing customers.
- No collateral required: – You don’t have to arrange for any collateral. It is an unsecured loan. Therefore, it is easy to get it.
- Flexibility to choose the tenure: – The tenure of the loan goes up to 7 years therefore you have the flexibility to choose a tenure which suits you best. Longer tenure means lower EMI and vice versa. Therefore you can decide you can decide tenure after calculating the EMI. Use our EMI Calculator to calculate the EMI.
- Fixed rate of interest: – Personal loan is generally available on fixed rate of interest. So the equated monthly installments will remain fixed for the entire loan tenure. Therefore you don’t have to worry about the interest rate changes.
- Tax benefit: – If you use the personal loan for the construction, renovation of house or making down payment for the house, you can avail the tax deduction of up to Rs 2 lakh under Section 24B for the interest part in a financial year. But remember that you will have to provide enough documents to prove that the money has been utilized for that purpose only.
PERSONAL LOAN ELIGIBILITY CRITERIA
Banks give personal loan to individual, self-employed professionals and non-professionals, Different banks have different criteria for giving personal loan. Following are the most commonly used criteria by banks for individuals
Minimum age: – 21 years
Maximum age: – 60 years
Minimum monthly income: – Rs 15,000 (banks may have a higher minimum income requirement)
Total years of job: – at least 2 years
Year of current residence: – 1 year
How much loan can I get?
Use our Personal Loan Eligibility Calculator to know how much loan you can avail.