Personal loans are granted by banks to its customers for fulfilling financial requirements. It is very easy and convenient for a person to avail personal loan. As the name suggests, the reason for taking a personal loan can be for any personal reason such as savings, repaying dues, investing, buying furniture or other purpose. It can help you to accomplish any task in life for which you do not have sufficient funds.
There is no security offered by the applicant for availing personal loan. Personal loans are generally granted on the basis of individual’s income records. If you are a salaried employee or a self-employed professional, then you surely avail personal loan with the required documentation. The eligibility criteria for availing personal loan are different for different banks.
Eligibility criteria
The profile of the borrower is very important for deciding whether he is eligible for availing personal loan. The applicant must be having good relationship with the bank. We can list out the general eligibility criteria for availing personal loans.
The age limit to become eligible must be between 21 to 60 years. It may differ from bank to bank. Personal loans can be obtained by full-time, salaried employees. Similarly, self-employed professionals can also apply for personal loan. But with regard to their income and employment status, banks have imposed certain rules. The person must be in employment or must be engaged in business for at least 2 years. The current employer or business must be since one year. The net income of the person must be approximately Rs.15, 000. This income restriction is higher in case of metro cities and may vary from bank to bank. According to the income and the repaying ability of the borrower, the loan amount can be given up to Rs. 20 lakhs but this depends entirely on the bank’s decision. And lastly, the borrower must have a good credit report and CIBIL score.
Benefits of personal loan
When you apply to a bank for personal loan, the bank will never ask you why you exactly need a personal loan. The reason can be anything like medical emergency, repaying dues, cash needed for marriage, etc. Hence, it is convenient and easy way of getting cash.
It depends on your creditworthiness to get a personal loan. You do not have to provide any security in the form of gold or your property. You won’t feel embarrassed for this at all. But please note that banks take into account your income, past financial history, employment status, and nature of business and so on before granting personal loan.
There is total confidentiality granted in personal loan as banks adopt certain privacy policies. The repayment period ranges from 12 to 60 months. You just need to pay an EMI for the principal amount and the interest calculated thereon. Thus, you are provided with good repayment options. Banks have included prepayment clause in personal loans. So, you can prepay it when you have surplus funds.
Thus, if you are in need of quick cash for a personal purpose, then you can definitely take the benefits of personal loan. But please check your eligibility from the eligibility calculators provided on the bank’s sites and by visiting offices.
