What is a Personal Loan?
Personal Loan is an unsecured loan that is generally used for a personal purpose. This type of loan could be used for paying off debts, going on vacations, buying appliances and latest gadgets, home improvement, unexpected medical expenses, and so forth. The banks calculate the eligibility of the borrower before approving the loan application. A Personal Loan is offered based on the credibility and repaying capacity of the borrower. The funds from a Personal Loan could be used for any type of expense as per the convenience and requirement of the borrower. As a Personal Loan does not require any security or collateral, the rate of interest charged is comparatively higher than other types of loans. Unlike the high rate of interest, the loan tenure is shorter than the other types of secured loans and can be used for any personal need.
Key Facts About Personal Loan
|Personal Loan Interest Rate||MCLR linked rate of interest starting at 10.99%|
|Loan Amount|| |
|Loan Tenure||Ranges between 12 months to 60 months|
|Nature of Personal Loan||Unsecured Loan (No security or collateral is required)|
|Loan Turnaround Time||Loan disbursement within 7 working days from the date of submission of loan application|
|Processing Fee||Ranges between 1% to 2% of loan amount|
|Prepayment||Ranges between 1% to 2% of loan amount|
Different Types of Personal Loan
There are different types of Personal Loans based on need - for example:
|Festival Loans||Loans offered during festival season at discounted interest rates for a shorter period of time.|
|Consumer Durable Loans||Small loans offered to purchase durable consumer products including televisions, ACs, etc.|
|Marriage Loan||Loan offered for marriage expenses|
|Vacation Loan||Loan taken for travel (Domestic and International)|
|Home Renovation||Loan for renovating/ upgrading your home|
Personal Loan Eligibility Factors and Key Documents:
A Personal Loan is offered based on certain factors that determine the eligibility of the borrower. Some of these are enumerated below.
|Credit Score|| |
|Type of Company|| |
|Repayment Capability of the borrower|| |
|Age||Varies from bank to bank but normally 21 years and above is required|
Who can apply?
The above factors help in the calculation of the eligibility that affects the EMI also. To know the amount of EMI, you can use mymoneymantra's Personal Loan EMI Calculator.
Key Documents for Personal Loan
Following documents are required to apply for a Personal Loan:
|Age proof|| |
Any one of the following:
|Address proof|| |
Any one of the following:
|Income documents|| |
Self-Employed Professionals/ Business Owners
|Other documents|| |
Why Take a Personal Loan via mymoneymantra and How Do We Help?
mymoneymantra is a leading financial services marketplace with experience of more than three decades. The mymoneymantra team consists of experienced and service-oriented professionals who will help you choose the best loan offer, suitable to meet your specific requirement. They will analyze your financial needs, and then help you throughout the loan process beginning from the submission of loan application till the loan disbursal into your account and follow-up for any service requirement.
Contact our loan experts anytime and obtain the best loan offers.
Note on part prepayment
Amount - How much do you want to part prepay?
Month - When do you want to prepay? If you availed your loan in Jan’16 and want to part pay in Jan’17, then please enter 12 months.