Secured Loans

The applicant must be at least 18 years of age and a resident of India. They should have a minimum salary income as prescribed by the bank. If they have their own business, then the business should be operational for at least 3 years. The loan amount cannot exceed the value of the asset. Salaried, non-salaried and self-employed individuals can apply for a secured loan.

Equated Monthly Instalments (EMIs) are monthly payments that the applicant pays in order to foreclose their loan. The EMI amount is calculated based on the principal amount, rate of interest and the loan tenure. The EMI calculator is an online tool that can be used to ascertain the EMI amount. Once the EMI amount is known, the applicant can plan their expenditures accordingly. You can use the Paisabazaar EMI tool to understand better how much loan you should take and the EMIs that you will have to pay, among others.

In a fixed rate of interest, the EMI amount remains the same. However, in a variable rate of interest regime, the EMI amount fluctuates as the rate of interest keeps changing. This makes this rate of interest comparatively unpredictable.

Borrowers can use secured loans for different reasons. People who need a home, for instance, can take a home loan while those who need a larger sum for business or other personal reasons can use a loan against property. In most cases, except for loan against property that can be used for multiple reasons, the end use of the secured loan is defined by its type. For example, you cannot use a car loan for anything else other than purchasing a car.