What is a Personal Loan?
Personal Loan is a type of unsecured loan that is usually used for various general and important purposes. This type of loan could be used for paying off debts, going on vacations, buying appliances and latest gadgets, home improvement, unexpected medical expenses, etc. †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 personal loan does not require any security or collateral, the rate of interest charged is comparatively higher than the other loans. Unlike the high rate of interest, the loan tenor is shorter than the other types of secured loans, but a personal loan 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 Tenor||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 the type of need. Some of them are following:
|Festival Loans||Loans offered during festival season at discounted interest rates for a shorter period of time.†|
|Consumer Durable Loans||Less amount of loan offered to purchase durable consumer products including television, ACs, etc.†|
|Marriage Loan||Loan offered for marriage expenses†|
|Vacations Loan||Loan taken for vacations (Domestic and International)|
|Home Renovation||Loan is taken for renovating/ upgrading your home|
Personal Loan Eligibility Factors and Key Documents:
Personal Loan is offered based on certain factors that determine the eligibility of the borrower. Following are the important factors:
|Credit Score/ CIBIL 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:
Anyone of the following:
Anyone of the following:
† Salaried Employee
† Self-Employed Professionals/ Business Man
Why take a Personal Loan via mymoneymantra and how do we help?
Mymoneymantra is a leading financial services marketplace with an 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 keenly 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 even afterwards for any service requirement.
You can get in touch with 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.