<h2><strong>Credit Card Loan vs Personal Loan: Which one is Better for You?</strong></h2><p>A personal loan and a credit card loan offer an approach to acquire funds and have a significant number of similar standard credit arrangements when in need. Hence, these have become a convenient financial tool in the market today.&nbsp;</p><p>In both types of loans, you will normally discover funds offered from a loan specialist at a predefined interest rate, regularly scheduled instalments for repayment, late fees, guaranteeing necessities, and many more. Misusing either kind of credit can subvert your CIBIL score, causing issues with other unsecured loans, applications for house loans, and other such benefits.</p><p>However, to further understand what differentiates the two types of loans in the subject, let us further dissect their features, benefits, interest rates, market benefits, and the strategic financial management that they aid to. Towards the end of this article, you’ll have sufficient insight on the subject of credit card loan vs personal loan<strong> </strong>for your informed acquisition of either of these.</p><h2><strong>What is a Credit Card Loan?</strong></h2><p>A credit card loan falls in the category of revolving credit. How a revolving credit works are, the borrower commonly has continuous admittance to the predefined finances as long as their record stays on favourable terms. Here the interest rates are comparatively on a larger scale than personal loans.</p><p>A credit card works uniquely in contrast to a personal loan. Borrowers can get access to a predetermined sum, yet they don't get that sum in full. Here, the borrowers can take finances from the banks at their caution whenever they need, limiting to the maximum principal amount that was agreed at the time of acquisition of your credit card. As a credit cardholder, you’ll be required to compensate for the interest on the funds you use in due time to keep the balance of the cycle of continuous receiving and giving.</p><p>By and large, each kind of credit card will have its unique way of collecting interest, so it is imperative to peruse all the details before opting ahead. In contrast to personal loans, where your repayment amount in scheduled instalments remains fixed in regular EMIs, a credit card bill will fluctuate every month.</p><h3><strong>Benefits of Credit Card Loan</strong></h3><p>Some of the most renowned benefits of credit card loans are as follows:</p><ul><li><strong>Seamless and convenient approvals</strong></li></ul><p>Credit card loans are unsecured, and they all fall under the category of pre-approved loans. There is no stringent documentation required to acquire a credit card in your name. The only thing to take care of is a good record of repayment, a good CIBIL score, and a clean track record of your previous cards, if any.</p><ul><li><strong>Simple repayment</strong></li></ul><p>Your credit card monthly bills can be paid through multiple offline and online modes of payment. As a card user, you have a wide array of options, including payment through net banking, mobile banking, or offline methods such as OTC or cheque payments, at the ATM, or even using your BHIM/UPI apps. You can also opt for an auto-debit facility for the payment of the bill wherein the monthly bill will auto deduct from your savings account without you taking the stress of missing the deadlines.</p><ul><li><strong>Smooth and flexible</strong></li></ul><p>When you opt for a credit card, your funds are instantly made available. There are no delays in terms of application ques, processing time, or other such hassles in cases of other conventional loans. You may even get an option to make a purchase and pay the amount later in EMIs, making the entire process completely customisable as per your preference.&nbsp;</p><ul><li><strong>No guarantor&nbsp;</strong></li></ul><p>Credit card loans fall under the category of unsecured loans, which simply means that there is no need to provide collateral or provide a guarantor at the time of application.&nbsp;</p><ul><li><strong>Added boost – Balance transfer</strong></li></ul><p>Most of the banks in the market today also give you a choice to move the outstanding balance from different cards to one single card and pay the bill in EMIs on your Loan on Credit Card. You don't need to stress over taking care of scattered loans on various records along these lines. Utilising this service, you can merge every one of your loans in a solo record and pay them off in EMIs.</p><h2><strong>What is a Personal Loan?</strong></h2><p>A personal loan is a specific amount of cash you can get to use for an assortment of purposes. For example, you may utilise a personal loan to meet your pending financial obligations, pay for home redesigns, or plan a fantasy wedding. These loans today can be offered by banks, financial associations, or online loan specialists. The cash you acquire needs to be reimbursed over the long run in fixed EMIs or premiums.&nbsp;</p><p>A personal loan assists you in acquiring cash to pay for your specific day to day needs, helping in quick resolutions of immediate dues that can later be repaid in smaller amounts over a fixed time duration. Unlike credit cards, when you opt for a personal loan, you get a lump sum amount at the time of application as a single acquisition and not a continuous cycle of acquiring funds over the duration of time.</p><h3><strong>Benefits of Personal Loan</strong></h3><p>Some of the most renowned benefits of a personal loan are as follows:</p><ul><li><strong>Stress-free process</strong></li></ul><p>To apply for a personal loan, you can visit the net banking portal of your bank and get the loan instantly. You can go to your bank’s nearest branch or ATM and get the loan with a quick process and minimal documentation requirements.&nbsp;</p><ul><li><strong>On-the-spot acquisition</strong></li></ul><p>Personal loans can be pre-approved, wherein it takes a maximum of 10 seconds for the funds to reflect in your account once the application has been submitted and accepted.&nbsp;</p><ul><li><strong>A wide array of uses</strong></li></ul><p>Unlike other types of loans specified to be used for a particular purpose, the most advantageous feature of a personal loan is that it can be used for any personal reason. From a vacation to a home renovation or to plan your dream wedding, the possibilities are endless.</p><ul><li><strong>Simplified documentation</strong></li></ul><p>The desk work and the processing time needed for a Personal Loan are much lower than most of the other categories of loans. You can get a credit with the accompanying reports: ID confirmation, address verification and income evidence. On the off chance that you are pre-approved for a Personal Loan, you may not have to present any document at all.</p><ul><li><strong>Pocket-friendly repayment</strong></li></ul><p>You can take care of your Personal Loan in simple portions or EMIs. The instalment terms are generally adaptable, and you can pick a tenure that permits you to dispose of the funds monthly as per your convenience and capacity.&nbsp;</p><h3><strong>Credit Card Loan vs Personal Loan</strong></h3><p>Now that we have understood both the loans at an individual premise let’s answer the big question of credit card loan vs personal loan.</p><ul><li><strong>Documentation:</strong></li></ul><p>Documents needed for personal loans are ID proof, address proof, and income statement and evidence.&nbsp;</p><p>There is no document required in the case of a credit card.</p><ul><li><strong>Credit card loan vs personal loan interest:</strong></li></ul><p>This is the main highlight to be put under consideration while taking any sort of loan. For the most part, personal loans are offered at a 13-22% interest rate, while card credits offer a 10-18% loan fee.</p><p>However, also take a note that in the case of credit card loans, they can be availed at flat interest rates, while personal loans are available with reducing balance rates.</p><ul><li><strong>Unsecured Loan:&nbsp;</strong></li></ul><p>Both these loans fall under the category of unsecured loans with no requirement of guarantor or collateral.&nbsp;</p><ul><li><strong>Tenure:&nbsp;</strong></li></ul><p>Credit card loans are opted for lower tenures, with the billing cycle usually ranging from 28-45 days after utilising the funds.</p><p>Personal loans are usually fixed over a longer tenure for easy EMIs.</p><ul><li><strong>Loan Amount:</strong></li></ul><p>A credit card loan is your go-to choice when your requirement is of smaller funds from time to time.&nbsp;</p><p>With personal loans, you should opt for this facility if a more significant sum is required.</p><p>After comparing the two credits, you can settle on a decision depending on your monetary need, the time period for which you need the advance and how soon you need it. When you yourself have clarity about your prerequisite, it is simpler for you to settle on the right decision.</p><h2><strong>When Should You Choose a Credit Card Loan?</strong></h2><p>This category of loan is suitable for you if you find yourself in need of a smaller amount of finances. Ideal for a short period of tenure, credit cards can help you in your regular purchases with the worry to pay them off sometime next month.</p><h3><strong>When Should You Choose a Personal Loan?</strong></h3><p>You should choose a personal loan in case of the following:</p><ul><li>You don’t have a credit card, or you couldn’t qualify for one due for any reason</li><li>You need a more significant sum but without any collateral to offer</li><li>If you need the lump sum amount for a predefined short period, let’s say 2 to 3 years only. Personal loans typically run from 12-60 months.</li></ul><h3><strong>FAQs</strong></h3><h4><strong>Q1 What is better for a credit score, personal loan or credit card?</strong></h4><p>Both personal and credit card loans can assist you with further developing your CIBIL score whenever paid ideally and in due time. In any case, a personal loan has a more drawn out reimbursement tenure and can be viewed as a superior decision for building a CIBIL score.</p><h4><strong>Q2 Is a loan on a credit card considered a term loan?</strong></h4><p>A credit card loan comes under the category of an unsecured loan. It is very similar to a term loan,, like acquiring cash for a shorter period of time to pay for the day to day requirements.&nbsp;</p><h4><strong>Q3 Should I take out a personal loan to pay off credit cards?</strong></h4><p>This can be done when you cannot pay off the balances of your overdue credit cards. In fact, it is considered a good option to go for a personal loan plan with lower interest rates and use the same amount you’ll receive instantly to pay off the overhead liabilities.&nbsp;</p>

Credit Card Loan vs Personal Loan: Which one is Better for You?

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Personal Loan or a Credit Card Loan? Find out few comparisons between these two unsecured kind of loans and decide which will suit you better.

<p>Finance Writer: Expert in Loans &amp; Credit Cards</p>

Priyanka Jain

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<p>Omni Channel Content Specialist| enthusiastic personal finance writer | Top50 CM professional by WMC, CMO</p>

<p>Personal Loan or a Credit Card Loan? Find out few comparisons between these two unsecured kind of loans and decide which will suit you better.</p>

<p>One's joy knows no bounds when a pre-approved personal loan offer flashes in the inbox. Or a call from a telemarketing agent is offering the loan and enlisting the numerous benefits and features they offer, that too at minimal or no documentation at all. When you are cash strapped, such offers feel like a gift from the heavens above.&nbsp;</p><p>But how do pre-approved personal loans work? Are they actually a boon for the borrower or bait that leads to a debt trap? Let's find out!</p><h2><strong>What is a Pre Approved Personal Loan?</strong></h2><p>A pre-approved personal loan is an instant cash loan given to select existing customers of the bank. A pre-approved personal loan is offered to customers with a good credit score as it is an unsecured loan without collateral or security. The customer's creditworthiness is evaluated using their repayment history, financial liabilities and quantum of cash inflows in their bank account.</p><h2><strong>Benefits of Pre Approved Personal Loan</strong></h2><h3><strong>No documentation:&nbsp;</strong></h3><p>True to its name, pre-approved personal loans are pre-approved, and therefore, they have no documentation. The bank considers the KYC details and income details from its database before proposing a pre-approved personal loan.</p><h3><strong>Paperless Application:</strong></h3><p>Pre-approved personal loans are applied online through the bank's website or mobile app. It is completely paperless and can be applied and availed by filling up and submitting an online application form. If required, soft copies of the necessary documents are uploaded in the required format.</p><h3><strong>Quick disbursal:</strong></h3><p>&nbsp;Pre-approved personal loans are offered to select customers. Therefore, the eligibility conditions are already met. Thus the loan, once applied, is quickly disbursed. For instance, ICICI pre-approved personal loans<strong> </strong>are disbursed in only 3 seconds!</p><h3><strong>Variable loan limits:</strong></h3><p>&nbsp;The loan limit approved may differ for different customers and is directly linked to their financial actions and relationship with the bank. The borrower may avail the entire limit or a part of it depending upon the personal requirement.</p><h3><strong>Preferential rate of interest:</strong></h3><p>Being eligible for a pre-approved personal loan indicates that you are a privileged customer of the bank. As you do not fall under the credit-risk category, you will be offered a preferential rate of interest.&nbsp;&nbsp;</p><h3><strong>Flexible loan tenure:</strong></h3><p>A pre-approved personal loan comes with flexible loan tenure. It usually ranges between 12 and 60 months, and the borrower has the option to choose the loan tenure considering one's repayment capability.</p><h3><strong>Special discounts:</strong></h3><p>A pre-approved personal loan is offered to customers who are financially disciplined and are extremely creditworthy. The banks foresee almost no risk of default. Thus, special benefits like processing fee waivers, preferential interest rates, EMI holidays, etc., are offered to lure the customer. These perks bring down the cost of the loan.</p><h2><strong>Top Banks Providing Pre Approved Personal Loans in India</strong></h2><p>Numerous banks and non-banking financial companies offer Pre-approved personal loans. The top banks providing pre-approved personal loans in India are:</p><figure class="table"><table><tbody><tr><td><strong>S.No.</strong></td><td><strong>Name of Bank</strong></td><td><strong>Rate of Interest</strong></td><td><strong>Maximum Loan Amount</strong></td><td><strong>Maximum Loan Tenure</strong></td><td><strong>Processing Fee</strong></td></tr><tr><td>1</td><td>ICICI Bank</td><td>11.25% per annum</td><td>Rs. 10 lakh</td><td>60 months</td><td>1.25% of the principal amount + GST</td></tr><tr><td>2</td><td>HDFC Bank</td><td>Starting 10.75% per annum</td><td>Rs. 15 lakh</td><td>60 months</td><td>2.5% of loan amount not more than Rs. 25000 per loan application + GST&nbsp;</td></tr><tr><td>3</td><td>State Bank Of India</td><td>Starting 9.60% per annum</td><td>Bank’s discretion</td><td>Bank’s discretion</td><td>Nil</td></tr><tr><td>4</td><td>Bank of Baroda</td><td>16% per annum</td><td>Rs. 50,000</td><td>18 months</td><td>NIl</td></tr><tr><td>5</td><td>IndusInd Bank</td><td>Starting 10.49% per annum</td><td>Rs. 15 lakhs</td><td>60 months</td><td>2.5% of loan amount + GST</td></tr><tr><td>6</td><td>IDFC First Bank</td><td>Starting 10.49% per annum</td><td>Rs. 40 lakh</td><td>60 months</td><td>2.5% of loan amount + GST</td></tr><tr><td>7</td><td>Axis Bank</td><td>Starting 12% per annum</td><td>Rs. 15 lakhs</td><td>60 months</td><td>1.5% - 2% of loan amount + GST</td></tr><tr><td>8</td><td>Yes Bank</td><td>Starting 10.99% per annum</td><td>Rs. 40 lakh</td><td>60 months</td><td>2.5% per annum subject to minimum of Rs 999 + GST</td></tr></tbody></table></figure><h2><strong>Top Non-Banking Financial Companies Providing Pre Approved Personal Loans in India</strong></h2><figure class="table"><table><tbody><tr><td><strong>S.NO.</strong></td><td><strong>Name of Bank</strong></td><td><strong>Rate of Interest</strong></td><td><strong>Maximum Loan Amount</strong></td><td><strong>Maximum Loan Tenure</strong></td><td><strong>Processing Fee</strong></td></tr><tr><td>1</td><td>Tata Capital</td><td>Starting 10.99% per annum</td><td>Rs. 25 Lakh</td><td>72 months</td><td>Up to 2.75% of the loan amount + GST</td></tr><tr><td>2</td><td>Bajaj FinServ</td><td>Starting 12.99% per annum</td><td>Rs. 25 lakh</td><td>60 months</td><td>2.25% to 3% of the loan amount + GST</td></tr><tr><td>3</td><td>Aditya Birla</td><td>Starting 14% per annum</td><td>Rs. 15 lakh</td><td>36 months</td><td>2% of the loan amount + GST</td></tr><tr><td>4</td><td>FullertonIndia</td><td>Starting 11.99% per annum</td><td>Rs. 25 lakh</td><td>60 months</td><td>Up to 6% of loan amount + GST</td></tr><tr><td>5.</td><td>IndiaBulls Dhani</td><td>Starting 13.99% per annum</td><td>Rs. 15 lakh</td><td>24 months</td><td>Minimum 1% of the loan amount + GST</td></tr></tbody></table></figure><h2><strong>Eligibility Criteria For Pre Approved Personal Loans in India</strong></h2><p>Banks and non-banking financial companies offer pre-approved personal loans to select customers. The eligibility check is conducted at the back-end. The criterion includes:</p><ul><li><strong>Credit Score:</strong> If you have a good credit score and have a default-free credit history, you are eligible for a pre-approved loan offer.</li><li><strong>Your assets and liabilities with the bank: </strong>The bank will consolidate your assets in the form of bank balance, fixed deposits, mutual funds, etc., with the bank. It will also evaluate your loan profile for a credit card, short-term loans and long-term loans. This gives a fair idea of the financial standing and repayment capacity of a pre-approved loan.</li><li><strong>Check for penalties:</strong> The bank will closely assess your savings and current bank account to take note of the number of times penalties have been imposed. These can be related to late payment charges, cheque bounce due to insufficient account balance, minimum account balance charges, etc. If your account is clean from any such charges, you are eligible for a pre-approved personal loan.</li><li><strong>Regular income:</strong> If you have your salary account with the bank and maintain a good debt-income ratio, you are eligible for a pre-approved personal loan<strong> </strong>offer.</li><li><strong>Overall financial health: </strong>In case you have a slightly less than optimal credit score, but have a good regular flow of income, bank balance above the minimum balance in your account and no ongoing loans, the bank may consider you for a pre-approved personal loan offer.</li></ul><h2>&nbsp;</h2><h2><strong>Documents Required For Pre Approved Personal Loans in India</strong></h2><p>Pre-approved personal loans are widely propagated as no-documentation loans. This is primarily because they are offered to existing customers. According to banking regulations in India, KYC (Know Your Customer) is mandatory for any financial activity like account opening, creating a fixed deposit, applying for a mutual fund or a loan, etc. As KYC documents are already updated in the bank's database, a pre-approved personal loan can be taken without any documentation.</p><p>The KYC documents required by the lending company include:</p><ul><li>PAN Card</li><li><strong>Address Proof</strong>: Image of any one document to be uploaded as address proof.<ul><li>Aadhaar Card</li><li>Driving License</li><li>Utility Bills</li><li>Voter ID Card</li><li>Passport</li></ul></li><li><strong>Identity Proof</strong>: Image of any one document to be uploaded as identity proof<ul><li>Aadhaar Card</li><li>Voter ID Card</li><li>Driving License</li><li>Passport</li></ul></li><li><strong>Income Proof:&nbsp;</strong><ul><li><strong>Self-Employed Individuals:</strong><ul><li>3 Year ITR</li><li>One year bank account statement</li></ul></li><li><strong>Salaried Individuals:</strong><ul><li>Latest salary slip</li><li>One year bank account statement</li></ul></li></ul></li></ul><h2><strong>How to Apply Pre Approved Personal Loans in 2021?</strong></h2><p>As pre-approved personal loans are offered by your existing banking partner, applying for the same is easy and hassle-free. It is important to note that before you proceed with the below-mentioned steps, the customer should have a net banking login ID and must be registered for online banking with the bank.</p><p>The steps to apply for Pre Approved Personal Loans:</p><p><strong>Step 1: </strong>Fill the application form: Log in through the mobile app on your Smartphone</p><p>· Log into the bank's official website</p><p><strong>Step 2:</strong> Select your required loan amount: Enter the required loan amount</p><p><strong>Step 3:</strong> Select the required loan tenure: Enter the required loan tenure. The EMI corresponding to the selected tenure will flash automatically. You can change the loan tenure to reach the desired EMI amount.</p><p><strong>Step 4: </strong>Disbursement of loan: Amount will be credited to your account instantly.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p><h2><strong>Tips to Avail Pre Approved Personal Loans</strong></h2><p>Pre-approved personal loans are actually an 'invitation to apply for a loan. They are offered to select customers who have a healthy banking history and a good relationship with their bankers. Thus, to avail of a pre-approved personal loan, one should keep the following points into consideration:</p><ul><li>Maintain a high credit score<ul><li>Do not default on credit card payments or ongoing loans.</li><li>Ensure that you have a stable source of income</li><li>Maintain a good debt-income ratio</li><li>Have substantial quantum of savings with the bank</li></ul></li><li>Maintain a good track record with your banker.</li><li>Pre-approved loan offers are valid only for the specified period. So, check with the lender for the available offers.</li><li>Although a pre-approved personal loan will be offered at a preferential rate of interest given your low credit-risk profile, it is important to go through the terms and conditions of the offered loan before closing the deal. Read through the applicable fees and charges clearly.</li><li>If you have more than one banking partner, compare the features and interest rates of the loan and pick the one that is cost-effective and best suits your needs.</li></ul><h2><strong>Frequently Asked Questions</strong></h2><h4><strong>✅Do pre-approved personal loans have income tax implications?</strong></h4><p>A personal loan is not an income. So the borrower will not be required to pay income tax on the loan proceeds received as credit in the account. Furthermore, unlike home loans, no rebates or deductions can be availed as benefits during the repayment of a personal loan.</p><h4><strong>✅ What is the rate of interest on an SBI pre-approved personal loan?</strong></h4><p>SBI pre-approved personal loan rate of interest starts at 9.60% per annum.</p><h4><strong>✅What is the maximum loan limit for HDFC pre-approved personal loans?</strong></h4><p>The maximum loan limit for HDFC pre-approved personal loans is Rs. 15 lakh.</p><h4><strong>✅What is the processing fee charged on ICICI pre-approved personal loan?</strong></h4><p>The processing fee charged on ICICI pre-approved personal loan is 1.25% of the principal amount + GST.</p><h4><strong>✅What are the features of Bank of Baroda pre-approved personal loan?</strong></h4><p>Bank of Baroda pre-approved personal loan is available at a rate of interest starting from 16% per annum. Borrowers can apply for a maximum of Rs. 50,000. The maximum repayment term is 18 months. Bank of Baroda does not charge a loan processing fee on pre-approved personal loans.</p><h4><strong>✅What is the processing fee charged on HDFC pre-approved personal loans?</strong></h4><p>The processing fee charged on HDFC pre-approved personal loan is 2.5% of the loan amount subject to a maximum of Rs. 25000 per loan application + applicable GST.</p><h4><strong>✅What are the features of Bajaj finance pre-approved personal loans?</strong></h4><p>Bajaj FinServ or Bajaj Finance pre-approved personal loan has a maximum loan limit of Rs. 25 lakh to be repaid within a maximum loan term of 60 months. The rate of interest starting at 12.99% per annum is charged on Bajaj Finance pre-approved personal loan. The lender charges a processing fee between 2.25% to 3% of the loan amount + GST.</p><h4><strong>✅What is the maximum loan amount available on a pre-approved personal loan by IndusInd bank?</strong></h4><p>The maximum loan amount available on a pre-approved personal loan by IndusInd bank is Rs. 15 lakh, to be repaid within 60 months. The processing fee levied is 2.5% of the loan amount + GST, and the rate of interest starts from 10.49% per annum.</p><h4><strong>✅What are the features of IndiaBulls Dhani pre-approved personal loan?</strong></h4><p>Pre-approved personal loan by IndiaBulls Dhani has a maximum loan amount of Rs. 15 lakh to be repaid within 24 months. The processing fee charged starts at 1% of the loan amount + GST, and the rate of interest starts from 13.99% per annum.</p><h4><strong>✅What are the features of FullertonIndia pre-approved personal loan?</strong></h4><p>Fullerton India pre-approved personal loan can be availed at a rate of interest starting at 11.99% per annum. The maximum loan amount available is Rs. 25 lakh. The borrower must repay the loan within 60 months. The processing fee is charged up to 6% of the loan amount + GST.</p><h4><strong>✅ How to apply for pre-approved personal loans in 2021?</strong></h4><p>Pre-approved personal loans are offered to existing customers. To apply for the same, the borrower must be authorized for online banking with the bank and must have a net banking login ID and password. Alternatively, the borrower must have the respective bank's mobile app installed on the Smartphone.</p><p>The steps to apply for Pre Approved Personal Loans are</p><p>Step 1: Fill the application form:</p><ul><li>Through the mobile app on the Smartphone</li><li>By logging into the bank's official website</li></ul><p>Step 2: Select the required loan amount</p><p>Step 3: Select the required loan tenure</p><p>Step 4: Receive loan credit</p><h4><strong>✅What is the processing fee for Tata Capital pre-approved personal loan?</strong></h4><p>The processing fee on Tata Capital pre-approved personal loan is up to 2.75% of the loan amount + GST. The borrower can avail up to Rs. 25 lakh at the rate of interest starting 10.99% per annum. The maximum loan term is 72 months (6 years).</p><h4><strong>✅What is the rate of interest charged on ICICI pre-approved personal loans?</strong></h4><p>The rate of interest charged on ICICI pre-approved personal loan starts at 11.25% per annum.</p><h4><strong>✅What is the maximum loan amount available on SBI pre-approved personal loan?</strong></h4><p>Pre-approved personal loans are offered to select customers. The maximum loan amount offered to a customer under SBI pre-approved personal loan offer is at the bank's discretion. It depends upon the income, age, credit score, ongoing liabilities, relationship with the bank, etc.</p><h4><strong>✅ How to apply for ICICI pre-approved personal loan?</strong></h4><p>Step 1: To apply for ICICI pre-approved personal loan, login to the official website<a href="http://www.icicibank.com/"> www.icicibank.com</a> and click on the 'login' link on the top right corner. Ensure that you have online banking activated for your account.</p><p>Alternatively, log into the iMobile app and click on the 'Apply now' link from the drop-down menu.</p><p>Step 2: Select the required loan amount</p><p>Step 3: Select the required loan tenure</p><p>Step 4: Receive loan credit</p>

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Thinking what is a pre-approved personal loan? Visit the page for pre-approved personal loans In India: All You Need to Know

Pre Approved Personal Loans In India: All You Need to Know - MyMoneyMantra

Reshma Rawat

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<p>Thinking what is a pre-approved personal loan? Here</p>

<h1><strong>Instant Loan Without Documents - A Perfect Guide</strong></h1><p>The need for cash may arise anytime. While we all save a penny or two for the future, sometimes it might just not be enough. Personal loans come up as the ideal solution at such times. Available without collateral and no end-use clause, personal loans can help you sail through the cash crunch moments easily. The instant loans without documents further add to convenience as one can avail the loan without getting into the cumbersome and lengthy process of loan documentation.</p><h2><strong>What is an Instant Loan?</strong></h2><p>Instant loans are primarily pre-approved loans that do not require much documentation, as is the case with traditional bank loans. They are approved really quickly without any collateral or guarantor. They are typically applied online and therefore require no written application or subsequent paperwork. Applicants who meet the eligibility conditions receive the loan credit in their accounts within minutes, hence the name instant loan or a quick loan.</p><h2><strong>Benefits of Instant Loan without Documents</strong></h2><p>Unlike earlier times when availing of a loan was troublesome, an instant loan without documents has changed the entire scenario. In addition to the No-Documentation clause, other features and benefits that attract borrowers are:</p><ul><li><strong>Short Term Loan</strong>: An instant loan without documents are short term loans that are typically repaid in flexible tenures, maximum up to 5 years.</li><li><strong>Low Principal Value</strong>: Instant loans are low principal value loans. One can borrow a principal amount of up to Rs. 5 lakh.</li><li><strong>Convenient</strong>: The process to avail of an instant loan without documents online is fast and easy.</li><li><strong>Quick Disbursal</strong>: Borrower can get an instant cash loan in 1 hour without documents.</li><li><strong>Completely Digital</strong>: The process to avail of an instant loan without documents is completely digital and can be applied from anywhere and anytime.</li><li>&nbsp;</li><li><strong>Paperless</strong>: An instant loan without documents is a paperless loan and requires no loan application and supporting documents.</li><li><strong>Hassle-free</strong>: Applying for an instant loan without documents online cuts down on the hassles involved in visiting the lender personally to complete the loan application process.</li><li><strong>No collateral</strong>: An instant loan without documents is a type of personal loan. It is an unsecured loan and therefore does not require collateral or guarantor.</li><li><strong>No end-use clause</strong>: The proceeds of an instant loan can be used to fund any event. The borrower does not need to submit an end-use certificate.</li></ul><h2><strong>Different Ways To Avail Instant Personal Loan Without Documents In India?</strong></h2><p>It pays to have a good track. Documents validating identity, address and income are vital for all loan credits. Without these checks, the chances of loan defaults may increase manifold. However, if the borrower’s credit history and financial track record are good, one can easily avail of an instant loan without documents.</p><p>The different ways to avail of an instant personal loan without documents in India are:</p><h3><strong>Choose your existing banker</strong></h3><p>Loyalty is preferred in every domain. Customers who have a good and long relationship with their bank are the preferred ones for an instant personal loan without documents. Furthermore, as the KYC formalities are already complete with the banker, one can receive an instant cash loan in 1 hour without documents.</p><h3><strong>Choose from pre-approved offers&nbsp;</strong></h3><p>Pre-approved offers are usually floated for existing customers who meet the eligibility conditions set by the lender. These offers are made depending upon your credit score and financial profile. So, taking advantage of these pre-approved loan offers will save you from submitting additional documents or initiating the loan process from scratch.</p><h3><strong>Choose the lender who offers instant loan approvals&nbsp;</strong></h3><p>Some lending institutions promise instant loan approvals. They ask for minimal documentation like PAN cards, salary slips and credit scores and approve loans quickly. In case a new lender is offering better loan terms than your existing banker, it’s time to change.</p><h3><strong>Maintain a high credit score</strong></h3><p>By paying bills and EMIs on time, the customer enjoys a near guarantee to avail another loan that too at favourable terms and conditions. Personal loans are unsecured loans. Thus, lending institutions rely heavily on the borrower’s credit score. A high credit score depicts the borrower’s responsible financial behaviour and increases the chances of getting an instant cash loan in 1 hour without documents.</p><h1><strong>How to Apply Instant Loan without Documents?</strong></h1><p>The benefits of availing of an instant personal loan are far too many. One only has to follow a well-structured process to enjoy these benefits.</p><p>To begin the process of loan application, one has to decide the lender beforehand. In addition to prominent banks and lending institutions, online digital wallets like LazyPay, Credy, ZestMoney are also into the business of offering an instant loan without documents.&nbsp;</p><p>Borrowers must be aware of the features and rate of interest applicable to the selected instant loan lender.</p><p>Here are five simple steps for applying for an instant loan without documents:</p><h3><strong>Step 1: Download App:</strong></h3><p>As the name suggests, instant loans are approved instantly. This is possible only through technological advancements. Thus, the process of instant loan application primarily operates through Apps. Download the application of the lender from which you plan to take a loan. The application is to be downloaded on the Smartphone via Google PlayStore for Android phones and AppStore for iOS phones.</p><h3><strong>Step 2: Setup App:</strong></h3><p>To install the App on the Smartphone, use the App navigation process. Registration on online digital wallets is completed using social media profiles.</p><h3><strong>Step 3: Set Credit Limit:</strong></h3><p>Once the App setup is complete, it will ask you to enter the instant loan amount you wish to take.</p><h3><strong>Step 4: Set Loan Tenure:</strong></h3><p>Select the loan period for which you wish to take the loan. The EMI corresponding to the entered figures will appear on the screen. Depending upon your repayment capacity, you can make amendments to the loan term or principal amount to reach the desired EMI value.</p><h3><strong>Step 5: Upload Documents:&nbsp;</strong></h3><p>For existing bank customers who have a good credit score, the loan will be credited into the account. Others will be required to upload the images of the required documents like PAN card and latest salary slip through the online App itself. If eligibility conditions are met, the loan will be disbursed into the savings bank account linked to the App or App wallet itself within minutes.</p><h1><strong>What is the Eligibility Criteria for Instant Loan in India?</strong></h1><p>A few eligibility conditions are a must to avail of an instant loan without documents in India. &nbsp; These include:</p><p><strong>For Lending From Banks and Non-Banking Financial Companies</strong></p><ul><li>The age of the borrower must be between 18 and 65 years</li><li>The borrower must be an Indian citizen</li><li>They can be salaried or self-employed</li><li>The borrower must have a credit score above 700</li></ul><p><strong>For Lending From Online Mobile Wallets</strong></p><ul><li>The borrower must be a resident of Tier I and Tier II cities</li><li>The borrower must be a salaried individual</li><li>The monthly take-home salary should be at least Rs. 15000</li><li>The profile check will be completed through a social networking website</li></ul><h2><strong>What to Keep in Mind While Applying for Instant Loans Without Documents?</strong></h2><p>The process of applying for an instant loan without documents is possible only for borrowers who choose their existing banking partner for their loan. If you are new to the lending company, minimal documentation is mandatory before your loan is approved and disbursed.</p><p>Thus, the following points must be kept in mind while applying for an instant loan without documents:</p><h3><strong>&nbsp;Watch your credit score:&nbsp;</strong></h3><p>Even a single instance of delayed payment will impact your credit score. Thus, diligently paying off bills, credit card dues and EMI instalments will help you maintain a healthy credit score. The current credit score is taken into consideration for extending loans to both existing customers and new borrowers.</p><h3><strong>Requirement of essential documentation</strong></h3><p>Basic documentation is required for every loan. In the case of existing customers, the KYC is already done. Therefore it is not needed again. But for new customers, identity, address and income proof are mandatory even for instant loans.</p><h3><strong>Rate of Interest:&nbsp;</strong></h3><p>Some lenders may offer an <strong>instant loan without documents</strong> at a very high rate of interest. Be aware of the interest rate charged as it is the cost of the loan. If you have all your documents for identity, address, and income in place and have a good credit score, negotiate for a lower interest rate.</p><h2><strong>Frequently Asked Questions</strong></h2><h4><strong>✅Can I get an instant loan without proof of employment?</strong></h4><p>Yes, you can qualify for an instant loan despite being unemployed. However, this is based on certain conditions. You’ll have to submit bank account statements that reflect a healthy bank balance and also show regular income inflows like rental income. If the lender is convinced about your repayment capacity, you’ll be eligible for an instant loan.</p><h4><strong>✅Can I get a loan with no proof of income?</strong></h4><p>In case you do not have income proof to submit, try applying for it with a co-applicant or guarantor. But ensure that your co-applicant has a good credit score.</p><h4><strong>✅Can I get an instant loan without documents on a bad credit score?</strong></h4><p>Your current credit score will reflect your financial behaviour and actions over the last 36 months. But if you have got a promotion or received a salary hike recently, you can convince the lender about your current upgraded income. If the lender is convinced with your improved repayment capacity, he may approve your instant loan even on a bad credit score.</p><h4><strong>✅What are the features and benefits of instant loans without documents?</strong></h4><ul><li>Short term loan typically repaid within five years</li><li>Low principal value loans up to Rs. 5 lakh.</li><li>Convenient and easy to apply online</li><li>Quick disbursal within 1 hour</li><li>Completely digital and, therefore, can be applied from anywhere and anytime.</li><li>Primarily operated through Smartphone applications, it is entirely paperless.</li><li>Hassle-free as there is no need to visit the lender personally to complete the loan application formalities.</li><li>Collateral free loan and does not even require a co-applicant or guarantor.</li><li>No end-use clause is associated with the loan.&nbsp;</li></ul><h4><strong>✅How soon can I get my instant loan credit?</strong></h4><p>Instant loans are quickly approved and disbursed. For instance, ICICI Bank disburses instant loans to its existing customers with a good track record in 3 seconds! Other lending companies also approve instant loans within minutes and have a same day disbursal.</p><h4><strong>✅Are instant loans paperless?</strong></h4><p>The instant loan application and subsequent interaction between the lender and borrower happen through digital platforms. The application form is paperless. Also, the images of documents required are uploaded on the system. A KYC (video KYC), if required, is conducted to complete the process. Thus, instant loans are absolutely paperless.</p><h4><strong>✅What is the maximum loan limit for an instant loan without documents?</strong></h4><p>Different lending institutions have other maximum loan limits. However, for most lenders, it is capped at five lakhs.</p><h4><strong>✅Do instant loans without documents have a processing fee?</strong></h4><p>Yes, lenders charge a processing fee to approve an instant loan without documents. It is levied as a percentage of the principal amount.</p><h4><strong>✅What is the minimum rate of interest at which instant loans without documents can be availed?</strong></h4><p>State Bank of India charges the lowest rate of interest on instant loans without documents starting at 9.60% p.a.</p><h4><strong>✅Who is eligible for instant loans?</strong></h4><p>Banks and Non-Banking Financial Companies offer instant loans to applicants aged between 18 and 65 years who are Indian citizens. They can be salaried or self-employed and must have a credit score above 700.</p><p>Online Mobile Wallets approve instant loans for salaried individuals who reside in Tier I and Tier-II cities. They check the applicant's profile through social networking websites. The amount of loan they can apply for is linked to their monthly take-home salary.</p>

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planning to get a personal loan without documents like income proof? Read this article to know the steps to avail of a personal loan without any documentation.

Instant Loan Without Documents - A Perfect Guide

<p>planning to get a personal loan without documents like income proof? Read this article to know the steps to avail of a personal loan without any documentation.</p>

<p>CIBIL score is a vital aspect of lending. Calculated by CIBIL (Credit Information Bureau India Limited), it is a three-digit number ranging between 300 and 900. It quantifies creditworthiness and helps gauge the repayment ability of an individual. It is therefore also known as the credit score. No wonder lending institutions hesitate to approve instant loans without CIBIL<strong> </strong>or with a low credit score.</p><h2><strong>Reasons for Low Credit Score</strong></h2><p>A CIBIL score above 750 is considered a good credit score when applying for a loan. However, some lending companies have set 650 as their lowest acceptable credit score for loan eligibility. But anything below the credit score of 650 hinders the person’s chance of availing a loan.</p><p>While we all know that inability to pay back debt is a reason for a low credit score, it is not the only one. Numerous other factors lead to a drop in CIBIL scores. These include:</p><h3><strong>Delay in credit card bill payments:</strong></h3><p>Defaulting on credit card payments is the main reason for a low credit score. It is important to note that the entire outstanding amount is paid either before or on the due date to avoid a low credit score. Credit card users prefer to pay only the minimum amount due, a practice that should be avoided to maintain a good credit score.</p><h3><strong>Reaching credit limit quickly and regularly</strong></h3><p>Every credit card has a fixed credit limit. If the credit card user uses the credit limit quickly and regularly, it gives an impression of excessive spending habits. Lending companies do not appreciate this behaviour, and therefore, it negatively impacts the credit score.</p><h3><strong>Too many ongoing loans:</strong></h3><p>While the applicant may be disciplined and pay back all liabilities without defaults, too many ongoing EMIs at the same time may raise red flags for creditors. It is presumed that too many liabilities at the same time may push the borrower into default, which reflects in the form of a low credit score.</p><h3><strong>Unbalanced loan mix:</strong></h3><p>The borrower must strike the right balance between secured and unsecured loans in his kitty. Secured loans are against collateral. This gives the lender legal rights to sell off the asset to recover losses in case of loan defaults. On the other hand, unsecured loans do not have any collateral or guarantor. There is no asset on which the lender can fall in case of default. So, in case your loan profile has too many unsecured loans, your credit rating lowers significantly.</p><h3><strong>No credit history:</strong></h3><p>Just like too many debt obligations at the same time has a negative impact on the credit score, having no credit history is equally bothersome. A lender may not be able to gauge your creditworthiness and, therefore, can decline your loan application. This lowers your credit score. It is important to start your credit history with a secured loan that is issued against collateral. Alternatively, if you have a good account balance and regular income, you may apply for a credit card.</p><h2><strong>How to Avail Instant Loan without CIBIL Score or low CIBIL Score?</strong></h2><p>Not many lenders approve an instant loan without CIBIL. In fact, in India, where credit cards are still gaining traction, applicants find themselves caught in the vicious circle - no credit card – no CIBIL score – no loan. A low CIBIL score is equally a deterrent.&nbsp; While this does impact your loan taking ability, there are certain measures one can take to get an instant loan without CIBIL or despite a low CIBIL score. These include:</p><h3><strong>Provide Income Proofs</strong></h3><p>If you are new to the process of personal loans and applying for loans for the first time, simply prove your creditworthiness to get your loan approved. An<strong> </strong>Instant Loan without CIBIL can be possible if you provide sufficient income proof and assure the lender of your ability to pay back the loan amount without defaults.</p><h3><strong>Go in for a low principal amount</strong></h3><p>As personal loans are without collateral, starting with a low principal amount loan and a shorter repayment term can help you get an instant loan without CIBIL or a low credit score. Avoid applying for a very high amount as the lender may not be willing to sanction it. A rejection letter will further reduce your odds of getting an<strong> </strong>instant loan without CIBIL.&nbsp;</p><h3><strong>Opt for a secured loan</strong></h3><p>To avail of an instant loan without CIBIL or a loan despite a low credit score, go in for a secured loan to begin with. A secured personal loan can be taken against gold, fixed deposit, PPF account or any other valuable asset. Timely repayment will build creditworthiness and improve subsequent chances of a loan.</p><h3><strong>Apply with a co-applicant</strong></h3><p>Applying for a loan with a co-applicant or a guarantor increases the chances of getting an instant loan without CIBIL score. The co-applicant must have a steady job with a regular income. Co-applicant must fulfil the lender’s KYC requirements and should have a good credit score.</p><h3><strong>Request lender in case of NH or NA in the credit report</strong></h3><p>Loan applicants can have NH (No History) or NA (History Not Available) marks on their credit report. This usually happens if there is no credit activity for the past 36 months. Loan applicants can discuss his/her credit report with the bank representative. In case the representative is convinced with the credit inactivity and is satisfied with the applicant’s income status, he may approve the instant loan without a CIBIL score at a slightly higher rate of interest.</p><h3><strong>Ensure credit report reflects latest updates</strong></h3><p>A credit report can be erroneous if it does not reflect the latest information against your banking records. This can affect your credibility and market standing. Therefore it is important to keep checking your credit score regularly. In case you come across such mistakes, you can file a dispute with CIBIL to get the matter sorted.</p><h2><strong>Check Your Credit Report</strong></h2><p>Checking your credit report regularly will keep you posted about your credit score. It helps you understand your financial position and also be aware of your financial actions. By being aware of what brings down your credit score, you’ll be able to avoid repeating those mistakes. Thus, you’ll be in a better position to negotiate good deals on personal loans, car loans, home loans, etc., in times of need.</p><p>A regular check of the credit report also highlights any inaccurate, incomplete or erroneous entries.&nbsp; These mistakes should be corrected at the earliest as they have a serious impact on your market standing and creditworthiness.</p><p>As a rule of thumb, credit reports must be checked one to three times a year. It can be checked for free online through any credit bureau website like the official CIBIL website<a href="https://www.cibil.com/"> https://www.cibil.com/</a>.</p><h3><strong>Frequently Asked Questions</strong></h3><h4><strong>✅What is the highest possible credit score?</strong></h4><p>A credit score of 850 is considered exceptional.</p><h4><strong>✅ What is the quickest way to improve credit score?</strong></h4><p>The quickest way to improve credit score is to pay bills on time and avoid high utilisation of the credit limit. As a rule of thumb, maintain a spending limit of 50% of the card limit. Do not avail revolving credit facility on a credit card.</p><h4><strong>✅Can I boost my credit score overnight?</strong></h4><p>Yes, you can boost your credit score overnight simply by disputing all negatives on your credit report.</p><h4><strong>✅How can I check my credit score on CIBIL for free?</strong></h4><p>To check your credit score on CIBIL, follow the following steps:</p><p>Step 1 – Go to the official CIBIL website<a href="https://www.cibil.com/"> https://www.cibil.com/</a></p><p>Step 2: Scroll down on the home page to click on the link ‘Get Free Annual CIBIL score’.</p><p>Step 3: Click on ‘Free Annual CIBIL Score’ to check the free score online.</p><p>Step 4: Enter the requisite details and provide your Identity proof.</p><p>Step 5: Click on ‘Accept and Continue’.</p><p>Step 6: You will receive OTP on your registered mobile number.</p><p>Step 7: Type in the OTP and continue.</p><p>Post successful registration, you’ll be directed to the website www.myscore.cibil.com, and you’ll be able to view your credit score on the screen.</p><h4><strong>✅ How often can I check my CIBIL score?</strong></h4><p>Credit reports must be checked regularly, about one to three times a year.</p><h4><strong>✅Would my CIBIL score be affected if I check my credit score regularly?</strong></h4><p>When an individual checks his credit score, it is considered as a ‘soft enquiry’.&nbsp; Repetitive soft enquiries do not impact the credit score. On the other hand, every time you apply for a loan, the bank or financial institution will check your credit report. This is counted as a ‘hard inquiry.’</p><p>Multiple hard enquiries initiated within a short period indicate the applicant’s ‘credit hungry behaviour’. This is rated as unfavourable and affects the credit score considerably.</p><h4><strong>✅What is the minimum credit score to apply for a personal loan?</strong></h4><p>Banks do not approve personal loans for applicants who have a credit score lower than 650 points.</p><h4><strong>✅Can I get an instant loan without CIBIL?</strong></h4><p>Yes, one can avail of an instant loan without CIBIL. To approve a loan without CIBIL, banks will require adequate income proof to believe that your income can support EMI payments. Alternatively, you can apply for a secured loan.</p><h4><strong>✅What do high and low credit scores determine?</strong></h4><p>A credit score is rated on a scale of 300-900. A score of 300 is the lowest or the most flawed credit score. It indicates a high probability of default on loan repayment. On the other hand, a credit score of 900 is considered the best credit score. It indicates the high creditworthiness of the applicant.</p><h4><strong>✅&nbsp;How do personal loans affect my credit score?</strong></h4><p>Having several personal loans affects the credit score negatively. This is because personal loans are unsecured loans.</p><h4><strong>✅How can you raise a dispute on your credit report?</strong></h4><p>In case a bank rejects your credit card application or loan application citing poor credit score as a reason, you can ask for the control number of your credit report. You can subsequently contact CIBIL at info@cibil.com and raise a dispute to get the errors corrected.</p><h4><strong>✅ What is the control number in the CIBIL report?</strong></h4><p>A control number is a nine-digit number that is unique for every enquiry. It is generated when a bank or lending institution accesses your credit report.&nbsp; With the help of a control number, CIBIL can track your credit report.&nbsp;</p><h4><strong>✅What is the difference between a credit report and a credit score?</strong></h4><p>A credit report will provide your detailed financial history. It will give in-depth information about your total debts, several accounts, bill payment history, etc. it is used to generate a credit score.</p><p>A credit score — a three-digit number, indicates the financial creditworthiness of the user. It can be calculated based on the information in the credit report.</p><h4><strong>✅What are the factors affecting my credit score?</strong></h4><p>The main factors that affect credit score are payment track record, high credit utilisation, short credit history, unbalanced credit mix, a large number of new credit enquiries and number of ongoing loans.</p><h4><strong>✅ Will cash advances on credit cards affect my credit score?</strong></h4><p>Cash withdrawal on credit cards can affect the credit score negatively. While the cash advance does not show up separately in the credit report, it affects the credit utilisation ratio. Furthermore, high charges associated with cash withdrawals on credit cards may lead to subsequent defaults in timely repayment, reducing credit score sign<br>&nbsp;</p>

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Get a loan without CIBIL score- Get an instant loan- Bad or low CIBIL score- Know More

Need Instant Loan Without CIBIL? Know How

<p>Get a loan without CIBIL score- Get an instant loan- Bad or low CIBIL score- Know More</p>

<p>Unpaid grocery bills, WiFi charges, utility bills piling up? Medical emergencies, unavoidable house repairs, child’s education, need to pay off existing debt, a rather quick wedding on cards; cash crises can arise anytime. Thanks to instant cash loans in India that can fund cash crises for almost anything and everything. True to its name, one can apply for an instant cash loan 24X7 in India. With quick approval and disbursal, you can enjoy the credit of an instant cash loan in 1 hour in your account.</p><h2><strong>Features And Benefits of Instant Cash Loan in 1 Hour</strong></h2><h3><strong>Short term loans with flexible repayment tenure:&nbsp;</strong></h3><p>Instant cash loans are short term loans. They have a flexible repayment term. The maximum repayment tenure is capped at five years.</p><h3><strong>Low principal amount:</strong></h3><p>Instant cash loans are designed to address small urgent cash needs. Borrowers can avail credit of principal amount up to Rs. 5 lakh.</p><h3><strong>Unsecured loan:</strong></h3><p>Instant cash loans are collateral-free loans. They can be availed without mortgaging an asset.</p><h3><strong>No end-use restriction:&nbsp;</strong></h3><p>Instant cash loans can be used for any purpose without submitting an end-use certificate.</p><h3><strong>Convenience:&nbsp;</strong></h3><p>One can apply for instant cash loans 24X7 in India. This makes the loan application process convenient.</p><h3><strong>Same day disbursal:&nbsp;</strong></h3><p>Instant cash loans are approved and disbursed quickly. Some lenders disburse an instant cash loan in 1 hour.</p><h3><strong>Completely Digital:&nbsp;</strong></h3><p>Apply for instant cash loans online through the completely digital loan application process.</p><h3><strong>Paperless:&nbsp;</strong></h3><p>As the process to avail of an instant loan is wholly digitalised, it is paperless, requiring no loan application and supporting documents.</p><h3><strong>Saves time:&nbsp;</strong></h3><p>Apply for <strong>instant cash loans online</strong> and save time spent on visiting the lender personally.</p><h2><strong>Eligibility Criteria for Instant Cash Loan in 1 Hour</strong></h2><p>As <strong>instant cash loans </strong>are unsecured loans, borrowers must meet the eligibility conditions to avail of the credit.&nbsp; The eligibility conditions include:</p><ul><li>The borrower must be 18 and 65 years of age</li><li>Indian citizen</li><li>Salaried individual</li><li>Minimum take home salary above Rs. 15,000</li><li>Credit score above 700 points</li><li>Must be the resident of Tier I and Tier II cities</li><li>Active social media account (Facebook)</li></ul><h2><strong>Documents Required to Avail Instant Cash Loan in 1 Hour</strong></h2><p>Prospective borrowers who are eligible for<strong> </strong>instant cash loans must submit the following documents. The images of these documents are to be uploaded on the lender website or on the phone application. If required, the lender can ask for the original hard copy of the same before approving the loan. The documents include:</p><ul><li>PAN Card</li><li><strong>Address Proof</strong>: The image of any one document can be uploaded as address proof.<ul><li>Aadhaar Card</li><li>Voter ID Card</li><li>Utility Bills</li><li>Driving License</li><li>Passport</li></ul></li><li><strong>Identity Proof</strong>: Image of any one document can be uploaded as identity proof<ul><li>Aadhaar Card,</li><li>Voter ID Card,</li><li>Driving License,</li><li>Passport</li></ul></li><li><strong>Income Proof</strong>: Latest salary slip and one year bank account statement</li></ul><h2><strong>Fees and Charges for Instant Cash Loans</strong></h2><p>Like any other loan, an instant cash loan also attracts a few charges. While different lenders will levy different charges, the broadhead under which they are charged is the same for all lenders.</p><p>The applicable charges on the instant cash loan account will be mentioned in the loan agreement. It is important to read through the fine points to be aware of the quantum of charges under each head before you proceed with the loan.</p><p>The fees and charges for instant cash loans are:</p><p>1. <strong>Processing fee</strong>: This is the fee to process the loan. It is typically levied as a percentage of the principal amount. It usually ranges between 3-5% of the loan amount.</p><p>2. <strong>Interest Charges</strong>: This is the rate of interest at which the loan is available. It is the cost of the loan and impacts the EMI value directly. Therefore, it is important to choose a lender who charges a lower rate of interest. Interest rates on instant cash loans start from 10% p.a.</p><p>3. <strong>EMI bounce charges</strong>: This is the penalty fee charged on missing an EMI payment. This is an absolute amount ranging between Rs. 300-1000 charged for every EMI missed.</p><p>4. <strong>Penal interest</strong>: In addition to EMI bounce charges, a penal interest levied as a percentage is charged as a penal interest until the time the defaulted EMI instalment is repaid. It is typically charged at 2% per month but varies from lender to lender.</p><p>5. <strong>Online Convenience Fee</strong>:&nbsp; Some lenders may also charge an online convenience fee. This is charged for creating an online loan account with a unique login ID and password.</p><p>6. <strong>Foreclosure Charges</strong>: Borrowers have an option to foreclose their instant cash loan account before the loan term ends. Lenders may charge foreclosure charges for the same. It is usually a percentage of the outstanding principal amount.</p><p>7. <strong>Prepayment Charges</strong>: Borrowers also have the option to prepay a part of the loan. This reduces the outstanding principal amount and also leads to a dip in the interest cost. The EMI value is recalculated again with the balance outstanding. Lenders may levy prepayment charges to make these adjustments. It is usually a percentage of the prepaid principal amount.</p><p>8. <strong>Duplicate Statement Charges</strong>: While the borrower can download the loan statement from the lender App free of cost, to get a hard copy of the same, a fee for a duplicate statement is charged. This is invariably around Rs 250-300 per request.</p><h2><strong>How To Apply For An Instant Cash Loan?</strong></h2><p>Instant cash loans are easy to apply. Borrowers who wish to apply for an instant cash loan must follow the following steps:</p><h3><strong>Step 1: Choose the lender</strong></h3><p>Several online digital wallets and reputed banks, and non-banking financial companies offer instant cash loans. Choose the lender carefully. If you have a good relationship with your banker and also have a good credit score, opt for a loan from the existing banker by negotiating a better deal. Be aware of the rate of interest and other charges that the lender proposes to levy.</p><h3><strong>Step 2: Download App:</strong></h3><p>To apply for an instant cash loan online, download the mobile application relevant to the lender. The application is to be downloaded on the Smartphone through Google PlayStore for Android phones and AppStore for iOS phones.</p><h3><strong>Step 3: Complete Registration Process and Setup App:</strong></h3><p>Install the App on the Smartphone using the App navigation process. Complete the registration process and complete the application setup.</p><h3><strong>Step 4: Select Credit Limit:</strong></h3><p>Select the loan amount you wish to avail yourself of. Please note the available loan limit is linked to your monthly take-home salary.</p><h3><strong>Step 5: Set Loan Tenure:</strong></h3><p>Once the loan limit is approved on the basis of eligibility, you’ll be asked to select the loan period for which you wish to take the loan. The EMI value for the corresponding loan term will appear on the screen. You can make changes to your loan term or principal value until you reach the desirable EMI value.</p><h3><strong>Step 6: Upload Documents:&nbsp;</strong></h3><p>New borrowers will have to upload images of PAN card, address proof, ID proof, income proof. Those existing customers of the bank who have a good credit score are credited the loan amount instantly. For new borrowers, the lending company will evaluate the applicant profile. Once it is approved, the loan gets disbursed into the savings bank account linked to the App or App wallet itself within 1 hour.</p><h2><strong>Frequently Asked Questions:</strong></h2><h4><strong>✅What fees and charges are applicable on instant cash loans?</strong></h4><p>Fees and charges on instant cash loans are charged under the following heads.</p><ol><li>Processing fee:</li><li>Interest Charges:</li><li>EMI bounce charges:</li><li>Penal interest:</li><li>Online Convenience Fee:&nbsp;</li><li>Foreclosure Charges:</li><li>Prepayment Charges:</li><li>Duplicate Statement Charges:</li></ol><h4><strong>✅Who is eligible for an instant cash loan?</strong></h4><p>To qualify for an instant cash loan, the borrower must be:</p><ul><li>between 18 to 65 years of age</li><li>Indian citizen</li><li>salaried individual</li><li>have minimum take-home salary above Rs. 15,000</li><li>have a credit score above 700 points</li><li>reside in Tier I or Tier II city</li><li>have an active social media account (Facebook)</li></ul><h4><strong>✅Can I get an instant cash loan without documents?</strong></h4><p>Existing bank customers can get instant cash loans without documents. However, loans for new customers are approved after minimum documentation.</p><h4><strong>✅What are the documents required for an instant cash loan?</strong></h4><p>New customers are required to submit the following documents to get an instant cash loan. These include:</p><ul><li>PAN Card</li><li>Any one document as address proof, namely&nbsp; Aadhaar Card, Voter ID Card, Utility Bills, Driving License, Passport.</li><li>Any one document as identity proof, namely Aadhaar Card, Voter ID Card, Driving License, Passport.</li><li>Latest salary slip and one-year bank account statement as income proof</li></ul><h4><strong>✅ Do I have to upload the documents every time I apply for an instant cash loan?</strong></h4><p>No, documents are uploaded only the first time you apply for a loan. Once the user is registered and the documents have been verified, they will remain on record for subsequent loan requests.</p><p>However, if the borrower keeps applying for loans from different lenders, documents have to be uploaded for every loan request.&nbsp;</p><h4><strong>✅Will EMI bounce on instant cash loans taken from online mobile wallets affect my CIBIL score?</strong></h4><p>Like any other loan, a PAN card is mandatory for availing instant cash loan too. The PAN card number is unique for every tax-paying individual and is registered against your name in official government records. Every financial action initiated against your PAN card will have a bearing on your CIBIL score.</p><h4><strong>✅Can I share documents for instant cash loans through email?</strong></h4><p>No, you cannot share documents for an instant cash loan through email.<strong> </strong>Instant cash loans operate through Smartphone Applications. Therefore, the documents are to be uploaded on the respective links in the App itself.</p>

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Instant cash loans are the short- term unsecured personal loans that give you access to funds on the very same day of your loan application.

Instant Cash Loans in India: Solve Your Financial Needs

<p>Instant cash loans are the short- term unsecured personal loans that give you access to funds on the very same day of your loan application.</p>

<p>Emergencies can arise anytime. While one has to undertake numerous measures to thwart the problems arising out of such emergencies, thankfully, financial requirements can be taken care of through instant loans. But these loans are not just for the hard moments of lifelike medical emergencies. Fortunately, one can enjoy the benefits of instant loans and use these funds for a decent purchase, unplanned wedding or even a family vacation.</p><p>If you are wondering how to get instant loan, you will be happy to learn that instant loans do not involve a great deal of documentation and are approved without collateral. These are short term loans. They charge minimal processing fees and are available at competitive rates of interest. Rightfully, they get their name for quick approvals and immediate disbursement.</p><h2><strong>How to Get Instant Loan in India 2021?</strong></h2><p>While everyone wishes to enjoy the benefits of instant loans, not everyone is familiar with the process of how to get instant loan. Instant loans are heavily dependent on technological advancements and operate through Apps. Thus, every lending company has an <a href="https://www.mymoneymantra.com/best-instant-personal-loan-apps-in-india">online loan App</a> in India that can be downloaded on the Smartphone.</p><p>Here are five simple steps that will help you understand the process of how to get instant loan:</p><h3><strong>Step 1: Download App</strong></h3><p>Once you have closely and carefully assessed the best instant loan options available in India, download the application of the respective lender on your Smartphone through Google PlayStore for Android phones and AppStore for iOS phones.</p><h3><strong>Step 2: Setup App</strong></h3><p>Set up the Application on your Smartphone using the App navigation process. Register yourself using your social media profile.</p><h3><strong>Step 3: Set Credit Limit</strong></h3><p>Enter the amount of instant loan that you want. Different lending companies have different minimum and maximum credit limits fixed. These will be mentioned in the respective feature list. So choose the lending company as per your financial requirement.</p><h3><strong>Step 4: Set Loan Tenure</strong></h3><p>Like the minimum and maximum credit limit, minimum and maximum loan tenure are also mentioned in the online loan App. Select the tenure prudently. Once the loan tenure is set, the EMI value corresponding to the inputs will appear on the screen. Depending upon your repayment capability, you can either make changes in the loan tenure or proceed with the instant loan application process.</p><h3><strong>Step 5: Upload Documents</strong></h3><p>Upload the images of the required documents through the online loan App. Approved loans will be disbursed into the saving bank account or App wallet within minutes.</p><h2><strong>Best Instant Loan Options Available in India</strong></h2><p>Banks and non-banking financial companies are the leading players in the business. However, RBI approved online digital wallets have also joined the online loan operations. So once you are aware of how to get instant loan, choosing the best lending option becomes the next biggest challenge.</p><p>Listed below are Best Instant Loan Options Available in India:</p><h3><strong>Best Banks Offering Instant Loan Options Available in India</strong></h3><figure class="table"><table><tbody><tr><td><strong>Name of Bank</strong></td><td><strong>Principal Amount</strong></td><td><strong>Loan Tenure</strong></td><td><strong>Rate of Interest</strong></td><td><strong>Other Features</strong></td><td><strong>How To Get Instant Loan</strong></td></tr><tr><td>ICICI Bank Insta Loan</td><td>Up to 25 lakh</td><td>12-60 months</td><td>10.5% - 19% p.a</td><td><p>For the existing bank customers who have a good credit record</p><p>Loan disbursal in 3 seconds</p><p>No documentation</p></td><td><p>Apply through Net Banking Login</p><p>Apply Through iMobile App</p></td></tr><tr><td><p>HDFC Bank Instant Loan</p><p>&nbsp;</p></td><td>Loan up to Credit Card limit</td><td>12 – 48 months</td><td>1.25% per month</td><td><p>For existing credit card customers</p><p>No documentation</p><p>Pre-Approved</p><p>Loan disbursal in seconds</p></td><td><p>HDFC Net Banking</p><p>&nbsp;</p><p>HDFC Bank MobileBanking App</p><p>&nbsp;</p></td></tr><tr><td>SBI pre-Approved Personal Loan</td><td>Up to Rs. 15 Lakh</td><td>5 Years</td><td>Starting 9.60% p.a.</td><td><p>For the existing bank customers who have a good credit record</p><p>&nbsp;</p><p>No Documentation</p></td><td><p>SMS “PAPL&lt;space&gt; last four digits of SBI account Number&gt;” to 567676</p><p>SBI Bank Yono App</p></td></tr><tr><td>YES Bank Quick Loan</td><td>Up to credit card limit</td><td>6 -24 months</td><td>Starting 10% p.a.</td><td><p>For pre-approved salary account holders of YES Bank</p><p>Amount transferred to YES Bank saving account within three working days</p></td><td><p>Yes Bank net banking</p><p>YES Bank Mobile App</p></td></tr><tr><td>Kotak Digi Personal Loan</td><td>Rs. 50,000 – Rs. 20 Lakh</td><td>12-60 months</td><td>Starting 10.5% p.a.</td><td>For existing bank customers</td><td><p>Kotak Bank Net Banking</p><p>Kotak – 811 &amp; Mobile Banking App</p></td></tr></tbody></table></figure><p>&nbsp;<strong>Best Non-Banking Financial Companies Offering Instant Loan Options Available in India</strong></p><figure class="table"><table><tbody><tr><td><strong>Name of Lender</strong></td><td><strong>Principal Amount</strong></td><td><strong>Loan Tenure</strong></td><td><strong>Rate of Interest</strong></td><td><strong>Other Features</strong></td><td><strong>How To Get Instant Loan</strong></td></tr><tr><td>Tata Capital</td><td>25% of the PPF account balance</td><td>Three years</td><td><p>No interest on PPF balance in loan tenure</p><p>+ 1% charged by Tata Capital&nbsp;</p></td><td>Issued against PPF (Public Provident Fund) account that is at least three years old.</td><td><p>Apply online through the Tata Capital website</p><p>Visit the nearest branch</p></td></tr><tr><td>Bajaj Finserv</td><td>Up to Rs. 25 lakh</td><td>Up to 5 years</td><td>Starting 13% p.a.</td><td><p>Pre-approved offers for existing customers</p><p>Approval in 5 minutes, disbursal in 24 hours</p><p>Minimal documentation</p><p>CIBIL score above 750</p></td><td><p>Apply online through the Bajaj Finserv website</p><p>&nbsp;</p></td></tr><tr><td>Fullerton India</td><td>Up to Rs. 25 lakh</td><td>60 months</td><td>Starting 11.99% p.a.</td><td><p>100% paperless loan</p><p>&nbsp;</p><p>Disbursal in 30 minutes</p><p>&nbsp;</p><p>CIBIL score above 750</p></td><td><p>Apply online through the FullertonIndia website</p><p>&nbsp;</p></td></tr></tbody></table></figure><h3><strong>Best Online Wallets Offering Instant Loan Options Available in India</strong></h3><figure class="table"><table><tbody><tr><td><strong>Online Wallet</strong></td><td><strong>Principal Amount</strong></td><td><strong>Loan Tenure</strong></td><td><strong>Rate of Interest</strong></td><td><strong>Processing Fee</strong></td><td><strong>How To Get Instant Loan</strong></td></tr><tr><td><p>KreditBee</p><p>&nbsp;</p></td><td>Up to Rs. 2 lakh</td><td>Three months to 15 months</td><td>Starting 15% p.a.</td><td>Processing fee up to 6% of the loan</td><td><p>Through KreditBee</p><p>&nbsp;Mobile App</p></td></tr><tr><td>IndiaBulls Dhani</td><td><p>Rs. 1,000 to 15 Lakh</p><p>Up to Rs. 3 lakh for new customer</p></td><td>Three months to 20 months</td><td>Starting 13.99% p.a.</td><td>Processing fee 5% of the loan</td><td>Through IndiaBulls Dhani App</td></tr><tr><td>LazyPay</td><td>Up to Rs. 1 lakh</td><td>Three months&nbsp; to 24 months</td><td>Starting 18% p.a.</td><td>Processing fee 2% of the loan</td><td>Through LazyPay App</td></tr><tr><td>Credy</td><td>Up to Rs. 1 Lakh</td><td>Three months to 12 months</td><td>Starting 1% per month</td><td>Processing fee 3% of the loan</td><td>Through Credy App</td></tr><tr><td>MoneyTap</td><td>Up to Rs. 5 Lakh</td><td>Two months to 36 months</td><td>Starting 13% p.a.</td><td>Processing fee 2% of the loan</td><td>Through MoneyTap App</td></tr><tr><td>ZestMoney</td><td>Up to Rs. 1 Lakh</td><td>Nine months to 24 months</td><td><p>0% p.a.</p><p>100% cashback on EMI payments</p></td><td>No processing fee</td><td>Through ZestMoney App</td></tr><tr><td>MobiKwik</td><td>Up to Rs. 5 Lakh</td><td>Six months to 36 months</td><td>12% p.a.</td><td>Processing fee 2% of the loan</td><td>Through MobiKwik App</td></tr></tbody></table></figure><h2><strong>What is the Eligibility Criteria for Instant Loan in India?</strong></h2><p>To avail of an instant loan in India, the borrower must meet a few eligibility conditions. However, these conditions are almost the same as in the case of any other loan. This is because instant loans are primarily pre-approved loans offered to existing customers. Although these conditions are different for different lenders, they broadly fall under the following head.</p><h3><strong>For Banks and Non-Banking Financial Companies</strong></h3><ul><li>Age - Between 18 and 65 years</li><li>Occupation - Salaried or Self-employed</li><li>Credit Score - Above 700</li><li>Nationality - Indian citizen</li></ul><h3><strong>For Mobile Wallets</strong></h3><ul><li>A resident of Tier I and Tier II cities</li><li>Monthly take home</li><li>Employment Status – primarily salaried</li><li>Profile checked through Social Networking website.</li></ul><h2><strong>Documents Required for Instant Loan in India</strong></h2><p>To apply for an instant loan, you will need to upload the following documents:</p><ul><li><strong>Identity proof</strong>: Aadhar card, Pan Card, Voter ID Card, Driving License and Passport are accepted as identity proof. You can upload any one of these documents, like your identity proof.</li><li><strong>Address proof:</strong> Aadhar card, Driving License, Passport, Utility bills like electricity, water or phone bill can be used as address proof. Upload any one of these to validate your address.</li><li><strong>Photo</strong>: Upload the latest coloured picture of yourself.</li><li><strong>Income Proof</strong>: Upload an image of your last drawn salary or income proof for non-salaried individuals.</li><li><strong>Bank statement</strong>: Bank account number with IFSC Code</li></ul><p>&nbsp;However, some lending companies sanction instant loans without a documentation process. These are primarily for existing customers who have a good credit history. Such pre-approved loans are checked for credit score requirement, debt-to-income ratio and current relationship with the lender before approving an instant loan.</p><h2><strong>Conclusion</strong></h2><p>The quest for how to get an instant loan is now easy and hassle-free. Instant loans are appropriately designed and rightfully named. While banks and non-banking financial companies are established in the lending business, the entry of online payment wallets has eased the way people avail instant loans, especially the salaried class. The competitive rate of interest, attractive loan terms, and quick disbursement add to the convenience.</p><h2><strong>Frequently Asked Questions</strong></h2><h4><strong>✅How to get instant personal loans through online wallets?</strong></h4><p>Download the mobile app of the wallet on your Smartphone. Complete the registration process. Check eligibility. If eligible, provide the required documents like PAN card, employer details, address proof, etc. Link your salary account with the mobile wallet. New customers will have KYC documents picked up from their residence for verification. Existing customers enjoy instant loan credit into their salary account.</p><h4><strong>✅Salaried or self-employed, who has a better chance of getting an instant loan?</strong></h4><p>Both salaried and self-employed are eligible for an instant loan. While banks and non-banking financial companies approve loans to both, mobile wallets prefer salaried individuals to advance instant loans. Banks generally approve instant loans to existing customers or credit cardholders with no default history.</p><h4><strong>✅What is ‘no documentation’ for an instant loan?</strong></h4><p>‘No documentation’ instant loans are issued to existing customers. This is because the KYC (Know Your Customer)conditions are already met beforehand. However, when applying for an instant loan, lending institutions do check your credit score, debt-to-income ratio and current relationship with the lender before approving an instant loan.</p><h4><strong>✅What is a paperless loan?</strong></h4><p>Instant loans are applied through the net banking channel or via the mobile app of the lender. They are paperless because images of the documents are to be uploaded. Banks and online wallets may have a vKYC (video KYC) to complete the formalities. As no paperwork is involved, hence they are termed paperless loans.</p><h4><strong>✅How do I download a banking app on my phone?</strong></h4><p>To download a banking app on your phone.</p><p>For Android phone users, go to the Google Play store. Search for the requisite banking app and install it. For iOS users, go to Apple AppStore and follow the same.</p>

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Personal Loan can help you receive funds quickly with little or no documentation to fulfil your dreams. Know how to get a personal loan in 5 easy steps!

How to Get Instant Loan in 5 Easy Steps in India?

<p>Personal Loan can help you receive funds quickly with little or no documentation to fulfil your dreams. Know how to get a personal loan in 5 easy steps!</p>

<p>Marriage on cards, child’s education, plans to re-do your space, or simply want to head on to a dream vacation; the desires are endless. But thankfully, a personal loan of up to 20 lakhs can help finance any event. There’s more, using a 20 lakhs loan EMI calculator, you can fix your monthly installment payment and pay back the 20 lakh loan quickly over the years.</p><h2><strong>Features and Benefits of 20 Lakh Loan</strong></h2><p>The lack of funds is no longer a reason to hold back or cut short your plans. Personal loans up to 20 lakhs can address your immediate financial requirements without much hassle.&nbsp; The features and benefits of a 20 lakh loan are:</p><h3><strong>Without Collateral:&nbsp;</strong></h3><p>A personal loan up to 20 lakhs is an unsecured loan. There is no need to provide collateral security or have a guarantor in place to avail of a 20 lakh loan.</p><h3><strong>Quick Approval:&nbsp;</strong></h3><p>Personal loans up to 20 lakhs are mainly advanced to existing customers of the bank. Thus, they are pre-approved and therefore sanctioned in minutes.</p><h3><strong>Hassle-Free Application:&nbsp;</strong></h3><p>How to get a loan of 20 lakhs? Well, it’s simple and hassle-free. Simply apply online through the official website of the lender.</p><h3><strong>Minimal Documentation:&nbsp;</strong></h3><p>A personal loan up to 20 lakhs is quickly approved for individuals who have a stable job and regular income with a trustworthy credit history. Thus the need for documentation reduces.</p><h3><strong>Quick Disbursal:&nbsp;</strong></h3><p>Once approved, the credit for the personal loan up to 20 lakhs can reflect in your savings account in a matter of few minutes. Most lending companies complete the entire personal loan process in less than three days.</p><h3><strong>Competitive Rate of Interest:&nbsp;</strong></h3><p>Factors like pre-existing relationship with the lender, credit score, existing debt, debt-to-income ratio, income, age, etc. affect the rate of interest at which a 20 lakh loan can be sought. Borrowers can negotiate better and lower rates of interest based on these factors.</p><h3><strong>Variable Loan Term:&nbsp;</strong></h3><p>Personal loans up to 20 lakhs generally have loan tenure ranging between 1-5 years. The loan term can be decided by the borrower depending upon his repayment capacity.</p><h3><strong>Easy Eligibility:&nbsp;</strong></h3><p>All salaried employees with a stable job and decent income are eligible for a personal loan up to 20 lakhs. Self-employed individuals have slightly stringent eligibility checks. But existing customers under all categories are eligible for pre-approved personal loans based on current credit score.</p><h2><strong>Best Interest Rates For 20 Lakh Personal Loan</strong></h2><p>The loan has a direct impact due to the rate of interest. It is the cost of the loan. Listed below are the 10 best interest rates available for a personal loan up to 20 lakh in India.</p><figure class="table"><table><tbody><tr><td><strong>S.No</strong></td><td><strong>Name of Lender</strong></td><td><strong>Rate of Interest (p.a.)</strong></td></tr><tr><td>1</td><td>SBI Bank</td><td>Starting 9.60%</td></tr><tr><td>2</td><td>HDFC Bank</td><td>Starting 10.25%</td></tr><tr><td>3</td><td>IDFC First Bank</td><td>Starting 10.49%</td></tr><tr><td>4</td><td>ICICI Bank</td><td>Starting 10.5%</td></tr><tr><td>5</td><td>Kotak Mahindra Bank</td><td>Starting 10.75%</td></tr><tr><td>6</td><td>Yes Bank</td><td>Starting 10.99%</td></tr><tr><td>7</td><td>Tata Capital</td><td>Starting 10.99%</td></tr><tr><td>8</td><td>Standard Chartered Bank</td><td>Starting 11.49%</td></tr><tr><td>9</td><td>ET Money</td><td>Starting 12%</td></tr><tr><td>10</td><td>Bajaj Finserv</td><td>Starting 13%</td></tr></tbody></table></figure><h2><strong>How to Calculate 20 Lakh Personal Loan EMI?</strong></h2><p>Personal loan EMI is calculated using a mathematical formula.</p><p>EMI = [P x R x (1+R)^N] / [(1+R)^N-1]</p><p>Where;</p><p>P = Principal loan amount</p><p>R = Rate of interest</p><p>N = Loan tenure in months</p><p>One can check the 20 lakh personal loan EMI through an EMI calculator. An online EMI calculator gives instant results. One simply has to enter the values for the loan amount, interest rate, and loan tenure. Furthermore, you can calculate EMI on 20 lakh loan for different loan tenures and rates of interest to reach the ideal EMI.</p><figure class="table"><table><tbody><tr><td><strong>Name of Lender</strong></td><td><strong>ROI (%p.a.)</strong></td><td><strong>20 Lakh Loan EMI for one year</strong></td><td><strong>20 Lakh Loan EMI for three years</strong></td><td><strong>20 Lakh Loan EMI for 5 Years</strong></td></tr><tr><td>SBI Bank</td><td>Starting 9.60%</td><td>Rs. 1,75,460</td><td>Rs. 64,159</td><td>Rs. 42,102</td></tr><tr><td>HDFC Bank</td><td>Starting 10.25%</td><td>Rs. 1,76,064</td><td>Rs, 64,769</td><td>Rs. 42,741</td></tr><tr><td>IDFC First Bank</td><td>Starting 10.49%</td><td>Rs. 1,76, 288</td><td>Rs. 64,995</td><td>Rs. 42,978</td></tr><tr><td>ICICI Bank</td><td>Starting 10.5%</td><td>Rs. 1,76,297</td><td>Rs. 65,005</td><td>Rs. 42,988</td></tr><tr><td>Kotak Mahindra Bank</td><td>Starting 10.75%</td><td>Rs. 1,76,530</td><td>Rs, 65,241</td><td>Rs. 43,236</td></tr></tbody></table></figure><h2><strong>Charges Associated With 20 Lakh Personal Loan</strong></h2><figure class="table"><table><tbody><tr><td><strong>Name of Lender</strong></td><td><strong>Processing Fee</strong></td><td><strong>Pre-Closure Charge</strong></td></tr><tr><td>SBI Bank</td><td>1.5% of the loan amount plus GST (minimum of Rs. 1000 to a maximum of Rs. 15,000</td><td>3% on principal outstanding plus GST</td></tr><tr><td>HDFC Bank</td><td>Min Rs. 999 + GST to Max. Rs. 4719</td><td>Nil if pre-closed after 12 months or between 1% - 4% is pre-closed before 12 months</td></tr><tr><td>IDFC First Bank</td><td>Up to 2.50% of loan amount plus GST</td><td>Up to 5% of loan amount plus GST</td></tr><tr><td>ICICI Bank</td><td>Up to 2.50% of loan amount plus GST</td><td>5% on principal outstanding plus GST</td></tr><tr><td>Kotak Mahindra Bank</td><td>Up to 2.50% of loan amount plus GST</td><td><p>5% on principal outstanding plus GST after 12 months</p><p>4% on principal outstanding plus GST after 24 months</p><p>3% on principal outstanding plus GST after 36 months</p><p>&nbsp;</p></td></tr></tbody></table></figure><h2><strong>Eligibility Criteria Of 20 Lakh Personal Loan</strong></h2><p>To be eligible for a 20 lakh loan, the borrower has to meet the following eligibility conditions:</p><figure class="table"><table><tbody><tr><td><strong>Eligibility</strong></td><td colspan="2"><strong>Criteria</strong></td></tr><tr><td>Age</td><td colspan="2">Between 18-65 years</td></tr><tr><td>Nationality</td><td colspan="2">Indian</td></tr><tr><td>Credit Score</td><td colspan="2">Above 650</td></tr><tr><td>Income</td><td>Salaried Individuals to have a monthly take-home salary not less than Rs. 15,000</td><td>Self-employed to have an annual gross income above Rs. 5 lakhs</td></tr><tr><td>Debt-to-Income Ratio</td><td colspan="2">Between 21% and 35%. Lower the ratio better it is</td></tr><tr><td>Work Experience</td><td colspan="2"><p>Government sector employees are preferred over private-sector employees.</p><p>Borrowers must have at least three years of work experience with at least one year with the same employer.</p></td></tr></tbody></table></figure><h2><strong>Documents Required For Rs. 20 Lakh Personal Loan</strong></h2><p>The bank or non-banking lending company will approve the personal loan up to 20 lakh only after the borrower meets the eligibility criteria. Subsequently, documents are verified and found to be authentic. The documents required for the Rs. 20 Lakh Personal Loan are:</p><h3><strong>Common Documents for Salaried and Self-employed</strong></h3><ul><li>&nbsp;Two latest coloured Passport size photo of the applicant</li><li>For Identity proof&nbsp; - Voter ID Card, Passport, Driving License, Aadhaar Card, PAN Card (any one)</li><li>For Address Proof - Ration Card, Voter ID Card, Passport, Driving License, Bank Account Statement, Aadhaar Card, Utility Bill (any one)</li></ul><h3><strong>Income Documents for Salaried Employees</strong></h3><ul><li>One-year bank statement in which salary is credited.</li><li>One year bank statement of account from which existing loan EMIs are debited</li><li>Two year Income Tax Returns</li><li>Two year Form 16</li><li>Latest Salary slip</li><li>Appointment letter</li></ul><h3><strong>Income Documents for Self-employed individuals</strong></h3><ul><li>One year bank statement of Saving Account and Current Account</li><li>One year bank statement of account from which existing loan EMIs are debited</li><li>Two year Income Tax Returns</li><li>Two year Annual Financial Statements like Balance Sheet and Profit and Loss Account</li><li>Latest Financial records</li></ul><h3><strong>Personal Loan Without Documentation</strong></h3><p>Lending institutions offer personal loans without documentation. These are pre-approved loans that are sanctioned only to existing customers after checking their current credit score and relationship with the bank. Thus, pre-approved loans are usually disbursed within minutes. Loyal customers with a good credit history also get the advantage of the lower rate of interest and reduced loan processing charges.</p><p>New customers, however, have to deposit the required documents to prove their income and job stability. Their credit score is thus important for loan advancement. Thanks to a well-structured loan application system, new customers also enjoy the personal loan credit in their bank account within three days.&nbsp;</p><h2><strong>How To Apply For 20 Lakh Personal Loan In India?</strong></h2><p>The personal loan application process to avail of a 20 lakh loan in India is well-structured and easy to understand. The steps involved are:&nbsp;</p><p><strong>Step 1</strong>: Visit the official website of MyMoneyMantra<a href="http://www.mymoneymantra.com/"> www.mymoneymantra.com</a> or download the app on your Smartphone.</p><p><strong>Step 2</strong>: Have yourself registered on the portal by providing the requisite details like name, address, income, amount of ongoing loans (if any).</p><p><strong>Step 3</strong>: Compare and contrast the available loan rates and associated processing charges of different lenders. Shortlist the lending company after having carefully read the features of their Rs.20 lakh loan.&nbsp;</p><p><strong>Step 4</strong>: Calculate the EMI using the inputs of the principal amount, rate of interest, and loan term to reach the ideal EMI amount that you can comfortably pay every month.</p><p><strong>Step 5</strong>: Apply for a personal loan up to 20 lakhs for the selected lender through the MyMoneyMantra website. A representative from MyMoneyMantra can assist you in the task.</p><p>Step 6: The representative from the bank where you have applied for the personal loan up to 20 lakhs will get in touch with you to process the loan application. Documents will be picked up and verified at this stage. Your credit score will be checked.</p><p><strong>Step 7</strong>: Once approved, a sanction letter will be issued. This will enlist the terms and conditions of the loan. The loan will be disbursed to your bank account.&nbsp;</p><h2><strong>How Can Mymoneymantra Assist You to Avail a 20 Lakh Personal loan?</strong></h2><p>Given the intricacies of the loan application process, it is best handled by a pro. MyMoneyMantra is a leader in the field. The online portal collates the information of varied financial products offered by different lending institutions. MyMoneyMantra also offers expert assistance to understand fine points, compare products and pick the best-suited loan deal.</p><p>Here are ways in which MyMoneyMantra can help you to apply for a personal loan up to 20 lakh<strong> </strong>and get approval in a hassle-free manner:</p><h3><strong>Best collation of information:&nbsp;</strong></h3><p>The borrower is no longer required to visit different websites or bank branches. MyMoneyMantra brings together the most comprehensive information about varied financial products offered by different lending institutions, all in one portal.</p><h3><strong>Easy availability of financial tools:&nbsp;</strong></h3><p>Financial tools make loan search easy. Prospective borrowers can take an eligibility check or use an inbuilt EMI calculator to calculate 20 lakh personal loan EMI to get a fair idea of monthly financial outflows. This helps in proper budgeting and reduces the risk of defaults.</p><h3><strong>Best financial advisors:</strong></h3><p>The in-house team at MyMoneyMantra staffs efficient and knowledgeable financial advisors. They are fully updated with the changing market scenario and thus offer the latest and best financial advice.</p><h3><strong>Customised solutions:&nbsp;</strong></h3><p>The suggestions and recommendations offered by the representatives of MyMoneyMantra are focused on addressing individual needs. Rest assured, the borrower will get the best personal loan deal as per budget and requirement.</p><h3><strong>No cost involved:</strong></h3><p>&nbsp;MyMoneyMantra is a free portal. No fee is charged for using and availing of its services.&nbsp;</p><h2><strong>Frequently Asked Questions</strong></h2><h4><strong>✅Can I avail Rs. 20 lakh personal loan without documentation?</strong></h4><p>Yes, Rs. 20 lakh personal loans can be availed without documentation. But this facility is available only to existing bank customers. The bank will, however check your current credit score before advancing the loan.</p><h4><strong>✅What is the minimum income of a salaried employee to be eligible for a personal loan up to 20 lakh?</strong></h4><p>Salaried individuals must have a monthly take-home salary of more than Rs. 15,000.</p><h4><strong>✅ What is the minimum income of a self-employed person to be eligible for a personal loan up to 20 lakh?</strong></h4><p>Self-employed individuals must have a gross annual income of more than Rs. 5 lakh.</p><h4><strong>✅Is a credit score required for a personal loan?</strong></h4><p>Yes, a credit score is important for a personal loan. It helps the lender gauge the creditworthiness of the applicant. It is measured on a scale of 300 to 900. The higher the credit score, the better it is.</p><h4><strong>✅What is the minimum credit score required for a personal loan?</strong></h4><p>Lenders take a minimum credit score of 650 points to approve a personal loan.</p><h4><strong>✅What are the income documents of salaried individuals to get personal loans up to 20 lakh?</strong></h4><p>Existing customers can avail the advantage of pre-approved loans. Hence, no documentation is required apart from a current credit score.</p><p>New customers will be required to provide a 1-year bank statement in which salary is credited, 1-year bank statement of account from which existing loan EMIs are debited, 2-year Income Tax Returns, 2 years Form 16, Latest Salary slip, and appointment letter.</p><h4><strong>✅Will personal loans up to 20 lakh require collateral security?</strong></h4><p>No, <strong>p</strong>ersonal loans up to 20 lakh do not require collateral security. Personal loans are unsecured loans. No collateral or guarantor is required to avail a personal loan up to 20 lakh. But the applicants must fulfill the eligibility criteria and have a good credit history.</p><h4><strong>✅How to calculate 20 lakh personal loan EMI?</strong></h4><p>Personal loan EMI is calculated using the mathematical formula</p><p>EMI = [P x R x (1+R)^N] / [(1+R)^N-1]</p><p>(P = Principal loan amount, R = Rate of interest, N = Loan tenure in months). Applicants can use a personal loan EMI calculator available online to find the EMI value corresponding to the input values.</p><h4><strong>✅What is the EMI for a 20 lakh personal loan?</strong></h4><p>Different lending institutions offer different rates for personal loans. Also, the EMI is dependent on the selected loan term.&nbsp; Five best 20 lakh loan EMI for five years</p><figure class="table"><table><tbody><tr><td><strong>Name of Lender</strong></td><td><p><strong>Rate of Interest</strong></p><p><strong>&nbsp;</strong></p></td><td><strong>20 Lakh Loan EMI for 5 Years</strong></td></tr><tr><td>SBI Bank</td><td>9.60% p.a.</td><td>Rs. 42,102</td></tr><tr><td>HDFC Bank</td><td>10.25% p.a.</td><td>Rs. 42,741</td></tr><tr><td>IDFC First Bank</td><td>10.49% p.a.</td><td>Rs. 42,978</td></tr><tr><td>ICICI Bank</td><td>10.50% p.a.</td><td>Rs. 42,988</td></tr><tr><td>Kotak Mahindra Bank</td><td>10.75% p.a.</td><td>Rs. 43,236</td></tr></tbody></table></figure><h4><strong>✅ How much will a 20 lakh personal loan cost?</strong></h4><p>Personal loans are repaid in EMIs (equated monthly installments). The lower the EMI value, the lower the cost of the loan.</p><figure class="table"><table><tbody><tr><td><strong>Name of Lender</strong></td><td><strong>Monthly EMI for 5-year loan term</strong></td><td><strong>Total Cost of Loan (Interest Component)</strong></td></tr><tr><td>SBI Bank</td><td>Rs. 42,102</td><td>Rs 5,26,120</td></tr><tr><td>HDFC Bank</td><td>Rs. 42,741</td><td>Rs. 5,64,460</td></tr><tr><td>IDFC First Bank</td><td>Rs. 42,978</td><td>Rs. 5,78,680</td></tr><tr><td>ICICI Bank</td><td>Rs. 42,988</td><td>Rs. 5,79,280</td></tr><tr><td>Kotak Mahindra Bank</td><td>Rs. 43,236</td><td>Rs. 5,94,160</td></tr></tbody></table></figure><h4><strong>✅How much personal loan can I get if my salary is Rs.15,000 per month?</strong></h4><p>You are eligible for a personal loan up to 20 lakh from your existing bank in which you receive your monthly salary credit.</p>

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Know about eligibility criteria, interest rates for 20 lakh personal loan, documents required, loan EMI & How to Apply.

20 Lakh Personal Loan in India 2021 - All you need to Know

<p>Know about eligibility criteria, interest rates for 20 lakh personal loan, documents required, loan EMI &amp; How to Apply.</p>

<p>A personal loan is quite possibly the most common and preferred acquiring choice for people looking for quick solutions to meet their monetary requirements. Given that this falls under the category of unsecured loan, it is a risk taken by the lender, and hence, there is bound to be some significant factor to base the loan upon for the banks to guarantee a hassle-free flow of credit.&nbsp;</p><p>In this case, one of the principal things that the banks or other lending firms take a thorough glance at is the CIBIL rating of the individual looking for the fund. With TransUnion CIBIL being seemingly the most well-known source of this assessment in India, the significance of a decent CIBIL score (750 and higher) for getting a personal loan can't be overemphasized. In any case, maintaining a decent CIBIL score for personal loan<strong> </strong>is a must-have in the checklist.&nbsp;</p><h2><strong>What is the Eligibility Criteria for Availing Personal Loan in India?</strong></h2><h3><strong>People on jobs (Salaried individuals)</strong></h3><ul><li><strong>Age</strong> - 21+ and below 60 at the time of maturity of the loan</li><li><strong>Employment tenure - </strong>To be a minimum of 2 years overall and one year at the current organization.&nbsp;</li><li><strong>Income bracket - </strong>A minimum bracket to be maintained between INR 7,500/- to INR 15,000/-.</li></ul><h3><strong>Entrepreneurs or Self-employed</strong></h3><ul><li><strong>Age</strong> - 25+ and below 65 at the time of maturity of the loan</li><li><strong>Startup/Business - </strong>To be in practice for a minimum of 3 years</li><li><strong>Annual income - </strong>A minimum annual bracket to be maintained up to INR 1,00,000/-</li></ul><h2><strong>What is CIBIL Score &amp; its Importance?</strong></h2><p>Set up in 2000, TransUnion CIBIL Limited (once known as Credit Information Bureau (India) Limited) is India's first Credit Information Company. It gathers and keeps up with credit-related data of people and corporations, including loans and credits. The agency then utilizes the data to make credit reports and issue CIBIL scores for each individual.&nbsp;</p><p>This score information of each individual is transferred to the banks to keep track of the financial track record of an individual while applying for unsecured loans, especially since the same is credited with no other guarantee but the credibility of the borrower.</p><p>The credit rating given by TransUnion CIBIL as a component of a person's CIBIL report is regularly alluded to as the CIBIL score. It's anything but a 3-digit number somewhere in the range of 300 and 900 that is determined dependent on your record of loan repayment. A score of 750 or above is viewed as a decent score, and by a similar rationale, a score like 300 is viewed as a poor CIBIL score.&nbsp;</p><p>A decent CIBIL score demonstrates higher credit value based on your past credit conduct and track record of your reimbursement history. Having no record or a bad rating puts your credibility on the questionable end as the bank either can't measure the danger or believe the candidate to be a higher danger borrower. HENCE, the CIBIL score for personal loan covers a vital part of the Indian monetary framework and is considered a certificate of the borrower's financial trustworthiness before the banks lend them the required sum.</p><h2><strong>How to Avail Personal Loan with Low Credit Score?</strong></h2><p>Since you are examined through the lenses of your past records, getting <strong>a personal loan for low CIBIL score</strong> becomes a challenge for the banks to approve or take a guarantee of your repayment. However, here are some common solutions to deal with such scenarios:</p><ul><li><strong>Present the records of a stable income</strong></li></ul><p>If yours is a stable income and you provide proof for the same, then despite a low credit rating, you might be able to get a favourable response from the lender. THings like a salary hike or an extra income source always help the case, just like the evidence of having a secure job. All these factors increase the chances of getting loan approval; however, there is an off-chance that you get it at a high rate of interest.&nbsp;</p><ul><li><strong>Start with a lower amount</strong></li></ul><p>Given your bad record/score, the bank is sceptical about your repayment and may perceive you as a serious danger for the loan. Considering the scenario from the lender's perspective, the probability of you meeting the deadlines of repayment are bleak. Hence, it is advised to start with applying for a lower amount for the lender to be inclined to take the risk. Even so, your rate of interest will also be considerably higher, making the repayment of a lower amount more doable.&nbsp;</p><ul><li><strong>Back yourself with a Guarantor</strong></li></ul><p>In the majority of cases, if you are standing on a lower CIBIL score, it is suggested to get a co-applicant, apply for a joint loan, or get a guarantor with a decent score to add credibility to yourself. On getting a guarantor on board, the banks look into some regular KYC formalities, and you end up getting a better deal.</p><ul><li><strong>Immediate actions on the score</strong></li></ul><p>It gets troublesome to back yourself a loan with a low CIBIL score. While the next step to take, without a doubt, is working towards improving it at your level, you can also apply for a re-check or reassessment. In some cases, there's a possibility that your data might not have been refreshed duly.</p><ul><li><strong>Request a case with an NA or NH in Your Credit Report</strong></li></ul><p>If you have an idle credit period lasting over three years, the same is marked by an NA or NH in your credit report. This translates as having no CIBIL score, which is better than having a bad score in the eyes of the lender. You need to explain the reason for inactivity to your representative. This might increase your chances of getting the loan approved, even if it is at a higher interest rate.</p><h2><strong>Can You Avail Personal Loan for CIBIL Score of 550?</strong></h2><p>At the point when you are trying to apply for a <strong>personal loan for a CIBIL score of 550</strong>, it sure is bound to get more challenging. However, regardless of your low score, numerous banks will be prepared to offer credits to you; with a definite higher rate of interest. Follow the above-mentioned steps in case you<strong> need personal loan with bad CIBIL score</strong> or take a look at the list of many new emerging Fintech platforms that are considering the applicants with a lower CIBIL score:</p><ul><li>Credit Sudhaar Finance</li><li>Loanbaba</li><li>Lendbox</li><li>Vintage Finance</li><li>Home Credit</li></ul><p>However, do not depend on the available market resources and ensure you improve your CIBIL score timely.&nbsp;</p><h2><strong>Factors Responsible for Low Credit Score</strong></h2><p>Consider the following factors and keep a check to determine your CIBIL score:</p><ul><li><strong>Personal loans</strong> - Taking too many personal loans reflects poorly on your financial management and tends to your liability, resulting in a poor score.</li><li><strong>Default in repayments -</strong> Credit rating definitely suffers if you fail to meet your monthly instalments on existing loans and are a direct certificate of your defective financial planning.</li><li><strong>Being on the edge of the credit card limit</strong>- Most common cause of a fall in your score is the carelessness towards maintaining the budget in your credit card and keeping it on the edge of its limit for a longer duration.</li><li><strong>Recharging credit cards at the bare minimum -</strong> Any outstanding balance in your records affects your CIBIL score directly. So even if it does not seem like a concern for the banks, if you are repaying only a certain amount of your outstanding balances, it still reflects a long-standing payable amount on your name. This, in turn, surely reflects on the scoring you have.&nbsp;&nbsp;</li><li><strong>No credit history - </strong>It does sound like a euphoric scenario where you haven't been in a situation of needing a loan or credit of any kind. It still is a factor to face when you go in for the loan for the first time. It simply implies that you have no back record, with a 0 CIBIL score for the bank to base their guarantee on.</li></ul><h2><strong>Tips to Improve CIBIL Score in India 2021</strong></h2><p>It is a challenge to deal with a bad score. However, here are some things to do to make up for the challenges you might have faced so far:</p><ul><li>Payback all the outstanding credit card bills at the earliest possible</li><li>Try to keep the borrowing limit to a minimum before recovering from your existing debts and balances.</li><li>In case you have paid all your dues on the credit card and plan to give it up, don't. The track record of a good financial balance on the credit card is a primary factor affecting your CIBIL score. Giving it up entirely will be of no help.</li><li>In case you have no credit record and wish to apply, go in for a secured loan first of a smaller amount, even if it's a vehicle loan. It is the first step to kicking off with a good start.</li><li>Check if there are any errors made in your CIBIL score and ensure timely updation of your records.</li><li>Give it a conscious thought to not reach the close limits of your credit cards too often. Else the same will end up lowering your score even further.</li><li>In case your credit card or loan applications are getting rejected, do not constantly keep on applying to other banks. Give your existing application some time and understand the challenges being faced instead of registering more rejected applications under your name.</li></ul><h2><strong>FAQs</strong></h2><h4><strong>✅What is the fastest way to build my CIBIL score for a personal loan?</strong></h4><p>A good way to build your credit score is through a credit card that is secured. You can also get a secured loan and make sure you have a co-signer. However, nothing beats practising good credit habits. Keep a check on your credit report and scores to take timely remedial action.&nbsp;</p><h4><strong>✅What are the documents needed to apply for a personal loan?</strong></h4><p>The documentation needed to apply for a personal loan are very basic, including proof of your age, address, and employment and income statement.</p><h4><strong>✅What is the minimum CIBIL score to apply for a personal loan?</strong></h4><p>Ideally, it is important to maintain a minimum score of 750 or above.</p><h4><strong>✅Can Credit Scores or CIBIL Scores be reset?</strong></h4><p>No, it is not possible to reset your credit scores as they are based on credit history that helps lenders decide your creditworthiness.&nbsp;</p><h4><strong>✅What is the time period involved in clearing credit history?</strong></h4><p>As long as you have an active account, it is not possible to clear your credit history. However, if your loan account is closed then your credit history will remain available for two years, after which it may be cleared.</p>

Can I Get A Loan With A Credit Score Of 550?

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Know how you can get a loan with a credit score of 550? ✓ what is the best Credit Score to get a personal loan ✓ To know more visit mymoneymantra.com

<p>Know how you can get a loan with a credit score of 550? ✓ what is the best Credit Score to get a personal loan ✓ To know more visit mymoneymantra.com</p>

<p>Taking loans has become as regular as going shopping for a new wardrobe, sometimes without even you realizing it. Simple phenomena of opting for postpaid bills on Ola, or your pay later credit stores are in one way or the other your indulgence in the entire system. The next purchase on EMI via Amazon or Flipkart, or opting for postpaid mobile balances, you are in the constant loop of taking and paying off loans. Having made you familiar with the concept, in this write up, we will talk about a rather severe and advanced theoretical and practical application of taking loans.&nbsp;</p><p>Categorically, loans today are divided into two major types - <strong>secured loans and unsecured loans. </strong>To simply differentiate the two with a one-liner, a secured loan requires you to put any of your valuable assets as collateral while taking the loan, while there is no such requirement while opting for an unsecured loan.&nbsp;</p><p>While it may sound like an easy point of differentiation and a deal-breaker of your understanding of the subject, the nitty-gritty in both scenarios makes a stark difference. There is a lot more ground to be covered on the subject - the <strong>difference between secured and unsecured loans,</strong> before making a final decision of going ahead with your selection.&nbsp;</p><h2><strong>What is a secured loan?&nbsp;</strong></h2><p>In layman's language, a secured loan is credit given to you by a lender who in turn holds back one of your valuable assets as collateral that can be used for a down payment in case of payment default caused from your end. When you take a secured loan, the sum acquired is usually high and needs specific backing up for release by the lender. Hence, assets like your house, your gold, shares, or mutual fund, etc., are taken under the possession of the bank/lender to use as a sense of security for the amount given for your immediate benefit.&nbsp;</p><h2><strong>Advantages of Secured loan</strong></h2><ul><li>Greater value for money</li><li>A higher range of credit</li><li>Lower rate of interest</li><li>Longer pay-off duration</li><li>Credibility for the lender</li><li>Resourceful in case of higher sum requirement</li></ul><h2><strong>Types of Secured loan</strong></h2><ul><li><strong>Mortgage loan:</strong></li></ul><p>A house loan is taken against your newly purchased property which can be both personal or for your business. The lease of the purchased land is not entirely released in your name until the entire payment has been made to the lender, in this case, the bank. An approximate 20% of the total value has to be paid right then to get this loan, and the rest of the amount is distributed over a period of time.&nbsp;</p><ul><li><strong>Loan on Vehicles:</strong></li></ul><p>While purchasing any automobile such as a car or a two-wheeler, you can opt for a secured loan and instead of exhausting your savings in one go, pay the smaller amount in a defined duration and on the final pay off, claim the full ownership of the papers of the vehicle.</p><ul><li><strong>Loan against gold:</strong></li></ul><p>Since gold is an elite and premium possession in our society, your acquired gold is often used as collateral at the time of applying for the loan, making you eligible for a certain percentage of credit of the overall value of the gold deposited.</p><ul><li><strong>Loan against shares and funds:</strong></li></ul><p>On the lines of the loan against gold, your mutual funds work as a tool of your secure investment that can be held as an asset for collateral when opting for a secured loan. As for the shares and the funds, when put as collaterals, the financial organizations measure the creditable value, keeping in mind the market scales of those shares and also the predictable ups and downs in the value. An approx of 60-70% of the value of these shares can be accepted upon as the credit value for your loan.</p><ul><li><strong>Loan against life insurance:</strong></li></ul><p>In some cases, your life insurance policy can also be used to back your secured loan up, with the creditable value being a percentage of the sum insured in the policy.</p><h2><strong>What is an unsecured loan?</strong></h2><p>Unsecured loans don't include any insurance from the borrower's end. Here, the solitary assurance that the lender has that you will reimburse the obligation is your reliability and your assertion. Hence, unsecured loans are viewed as a greater danger for loan specialists. You'll, by and large, need a solid record as a consumer and a higher credit score to fit the bill for an unsecured loan.&nbsp;</p><p>These loans regularly accompany higher interest rates naturally, keeping the above stated in mind. Think of the contrast between the regular home loan rate and what you may pay yearly on a Visa. Balancing the portion of the additional risk taken by the lender with the exorbitant interest obligation is more challenging to pay off.</p><h2><strong>Advantages of Unsecured loans</strong></h2><ul><li>No assets required&nbsp;</li><li>The application process is much quicker</li><li>Suitable for ongoing expenses of lower order.</li></ul><h2><strong>Types of Unsecured loan</strong></h2><ul><li><strong>Credit Cards:</strong></li></ul><p>The most commonly used unsecured loans are credit cards. Today, almost all working individuals prefer to have one at their disposal. It is a revolving loan that carries a specific spend limit putting a bracket on the amount that can be withdrawn at one given period of time, the duly reimbursements of which largely hamper your credit score in the longer run. It provides the flexibility to manage more straightforward expenses and smoothly sail through the month.</p><ul><li><strong>Student Loans:</strong></li></ul><p>Available through both - the Department of Education and private financial giants, a student loan is again a common category that takes off an immediate burden of the education of a child, which can then be repaid slowly. This, although an unsecured loan, has tax rebate benefits as well.</p><ul><li><strong>Term Loan:</strong></li></ul><p>A term loan or a personal loan will demand your signatures at the bottom of the sheet and will make a lump sum amount available at your disposal for a short term duration. This category of loans generally has a fixed rate of interest.</p><p>To sum up, the above-stated pointers, let's map out the <strong>difference between secured and unsecured loan.</strong></p><figure class="table"><table><tbody><tr><td><strong>Loan type</strong></td><td>Credit Value</td><td>Interest rate</td><td>Loaned against</td><td>Appropriate for</td></tr><tr><td><strong>Secured Loan</strong></td><td>Higher credit value with the pledged security</td><td><p>Lower rate because of the asset involved, and longer duration of reimbursement</p><p><br>&nbsp;</p></td><td>Personal assets - Home, land, car, gold, etc.</td><td>Long term investments in land, automobiles, equipment, etc.</td></tr><tr><td><strong>Unsecured loan</strong></td><td>Lower credit value as the credibility depends on the person</td><td>Higher interest rate to involve with legible customers only</td><td>Credit history of the individual</td><td>Personal loans for smaller expenses</td></tr></tbody></table></figure><p>Both <strong>secured loan and unsecured loan</strong> carry their shares of pros and cons that can be profoundly used for your better quality of life if applied for with a well-thought plan and usability. Together, they're the keys to homeownership, vehicle acquisitions, readily available credit card usage, financing your schooling, and helping you balance out your expenses adequately. However, always make sure to go ahead with your loan plan only when you 'have' to and not just for an added 'benefit'. These decisions play a significant role in your financial credibility as an individual and hence need critical balancing of scales before opted for.</p><h3><strong>FAQs</strong></h3><h4><strong>✅ What is my eligibility criteria for an unsecured loan and secured loan?</strong></h4><p>SECURED LOAN:</p><ul><li>You need to be 18+</li><li>You must be a resident of India</li><li>Most financial firms put a limit of an annual income of up to INR 3 lakhs&nbsp;</li><li>For business loans, the business must be running and show a profit for three consecutive years.</li><li>The assets must be of a greater value than the applied amount.</li></ul><p><br>&nbsp;</p><p>UNSECURED LOAN</p><ul><li>The age bracket of 21-68 years</li><li>You need to be employed/in business for 2-5 years</li><li>Minimum monthly income to be above INR 5000/-</li><li>CIBIL score needs to above 750</li></ul><h4><strong>✅ What documents do I need for opting for secured loans?</strong></h4><p>Common documents needed:</p><ul><li>ID Proof</li><li>Age Proof</li><li>Income Proof</li><li>Original Asset documents</li><li>Bank statements of the previous six months</li></ul><h4><strong>✅ Can I apply for both the loans at the same duration of time?</strong></h4><p>Mostly it is not advised to opt for two loans at a single point in time, and it also causes troubles while presenting the documents to the lender.</p>

Difference Between Secured and Unsecured Loans

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Most loans are either secured or unsecured. Here are detailed definitions of both loan types to help you choose the best option for you.

Difference Between Secured and Unsecured Loans - MyMoneyMantra

<p>Most loans are either secured or unsecured. Here are detailed definitions of both loan types to help you choose the best option for you.</p>

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