Personal loan is such a loan that a person takes when he needs money immediately for some work, this need can be anything like expenses like shopping, medical, travel, marriage, or education. A personal loan comes under the category of an unsecured loan due to which your personal assets cannot be attached by finance companies and banks.
Personal loans are given to customers at a fixed interest rate, whose EMI repayment period can be up to 5 years. Personal loan interest rates and loan repayment tenure can vary depending on the financial profile of the borrower. If your financial profile is very good, then you can get a loan at a very low-interest rate.
You can use both offline and online methods to avail of a personal loan. Nowadays there are many websites and loan apps available for taking personal loans online. Apart from taking a loan through the app, you can get the loan amount in your bank account very quickly, as well as the documentation is also done through digital means, as per the policy of finance companies, extra charges are levied for delays in personal loan installments.
Types of Personal Loan
1. Education Loan
Education loan helps in providing funds for pursuing graduate, postgraduate and higher education studies. These loans generally help in meeting tuition fees, house rent, books, internet and other related expenses.
2. Home Renovation
Home renovation loan can opt for home repairs. This loan helps in covering expenses like painting, flooring and kitchen or bathroom remodeling.
3. Wedding Loan
This loan especially helps in meeting the expenses of weddings. In there are many expenses related to marriage including catering and decoration etc.
4. Travel Loan
Travel loan is another type of personal loan that covers expenses related to domestic or international travel for holidays or other purposes. By taking this loan, you can meet the expenses of a plane ticket, hotel room rent, restaurant etc.
5. Business Loan
You can take a personal loan to invest money in a new business. Through this loan, you can pay for expenses like inventory, equipment and marketing.
6. Medical Loan
You can also opt for a loan for medical to cover medical expenses. These loans can be used to meet the cost of medicines, surgery or hospitalization.
7. Personal Line of Credit
A personal line of credit is a type of revolving credit that can be used to meet expenses. The borrower can withdraw the required amount from the credit limit and pay interest only on the withdrawn amount.
8. Debt Consolidation Loan
This loan can be used to ease loan repayments and EMIs of your old loans. It is a single loan that helps you meet all your outstanding credit card bills and other loan repayments.
If you are applying for a personal loan, then you can get the best personal loan offer from SBI, Bank of Maharashtra, Union Bank, IDBI Bank. The interest rates of all these banks are low. But before applying for the loan, the offer of the bank giving the loan should be well known because the loan offers of all the financial organizations keep changing. Before taking a loan, you should carefully check the information related to low interest rate, better loan amount and loan repayment time etc.
If you want to take a personal loan easily, then you can get it by using the online loan app. There are many such apps on Google Play Store and App Store which provide loans to their users. You can get a loan within 10 minutes by using these applications just by uploading some details and your documents.
Personal Loan is such a loan that a person takes to meet any of his financial needs. Anyone above the age of 18 who has a source of income and a good credit score can apply for a personal loan. Apart from this, it is also necessary to have your valid documents. After fulfilling all these qualifications, you become eligible for the loan.
Bad credit score is such a situation when you do not get loan from any finance company. This happens when you are unable to repay the loan taken by you on time. No finance company wants to give loan to a person with band credit score. If you need a loan on bad credit score, then first of all you have to assure the bank that your financial condition has improved and you can repay the loan. Secondly, you may have to mortgage any of your assets to avail the loan. Apart from this, when you go to apply for the loan, you will have to apply for the loan together with a Co-Applicant.
Personal loan is given at a much higher interest rate as compared to other types of loans. The reason for it being expensive is that this loan is an unsecured loan. At the time of giving loan, no one mortgages the property to recover the money of this loan, therefore, if the person receiving the loan does not pay the loan amount, then it is a difficult task to withdraw the money from him. In such a situation, more interest is charged on the personal loan so that the money can be compensated in the form of interest.