Whether you are planning a wedding, furnishing a new home or looking forward to a vacation, a personal loan can help you achieve these dreams and much more. Personal loan is one way through which you can gain financial assistance and support for your personal desires, without having to dip into your hard earned savings. It is easy to get a personal loan sanctioned in a matter of few days and being unsecured, you need not have any assets to get approved for it. The amount which is sanctioned to you will depend on a few key factors such as your take-home salary. The loan amount can vary from as little as Rs. 20,000 to as much as Rs. 25 lakhs. Let’s consider the following example of how a personal loan could work out:
Rajat Malhotra is a senior software engineer working with a multinational tech firm. His father, a retired government employee, plans to buy a residential plot in his hometown, Kanpur. The land costs around Rs.10 lakhs but Rajat’s father is short by Rs. 3 lakhs. As Rajat knew that he could easily afford a personal loan of 3 lakhs with an annual salary of Rs. 8 lakhs, he asked his father to proceed with the purchase. At an interest rate of 14% Rajat planned to repay the loan amount in a span of 3 years with an EMI of Rs. 10,250 approximately. With this personal loan, Rajat could help his father purchase his dream land, the first step towards building a family home.