About Personal Loan
A Personal Loan is a form of unsecured loan availed by individuals on the basis of specific criteria, such as level of income, employment history, credit score, and scope for repayment.Get lowest Interest rate Personal Loan up to Rs.50 lakhs at 10.99%*. Compare Interest rates, Loan Tenure, Processing fees and calculate EMI and get the personal loan from best bank in India.
By Saroj Prasad
Personal Loan Eligibility
The following are the eligibility criteria for personal loans in India:
|Age||21 years to 60 years||22 years to 55 years|
|Net Monthly Income||Rs.15,000||Rs.25,000|
|CIBIL Score||Above 750||Above 750|
|Minimum Loan Amount||Rs.50,000||Rs.50,000|
|Maximum Loan Amount||Rs.25 lakh||Rs.30 lakh|
Documents Required for Personal Loans
The following are the basic documents required for personal loans in India:
|Requirements||Salaried Individuals||Self Employed|
|Proof of Identity||Passport, Voter’s ID, Driving License or PAN Card||Passport, Voter’s ID, Driving License or PAN Card|
|Proof of Residence||Passport or utility bills||Passport or utility bills|
Proof of Income
|Bank statement of salary account for the past two years|
Audited financial statement of the past two years
A Personal Loan is a form of unsecured loan availed by individuals on the basis of specific criteria, such as level of income, employment history, credit score, and scope for repayment.
Use LoanMrt.com Personal Loan EMI Calculator to Calculate EMI
Thanks to advancements in technology, checking your personal loan EMIs is now as easy as it gets. Almost all banks that offer personal loans have an EMI calculator facility that enables customers to check their EMIs in a smooth and hassle-free manner. LoanMrt’s EMI calculator is easy to use and provides accurate results.
To calculate your EMIs on LoanMrt.com, all you have to do is enter the loan amount, the tenure, the interest rate, the processing fees, and check the applicable box (Yes or No) if you wish to make prepayments. Then, click on the ‘Calculate’ button and your EMI amount will be generated instantly. You will also be able to view the breakup of the EMIs – how much of the amount will go towards principal repayment and how much towards interest. In addition, you can also view the amortisation table which will show you how much you will be repaying at the end of each year.
Tips for Successful Personal Loan Application
The following are a few important tips for a successful personal loan application:
- You will need to be clear about the need for your personal loan. You can take it for funding your wedding arrangements, paying your hospital bills, buying medicines, etc. Before you apply for the loan, you will need to assess if you really want the loan. If you are planning to take a personal loan for investing in shares or other financial instruments, then it may not be a great idea.
- You can do online research by visiting third-party financial websites or by going to the banks’ official websites to compare different interest rates for personal loans. This will help you get a proper idea about the costs that you will incur.
- Before you proceed to apply for a personal loan from any bank or NBFC, you will need to assess your credit history thoroughly. This will give you an idea about the loan amount that you will receive. You need to make sure your credit history looks decent before you apply for a loan.
- Make sure you read the personal loan details carefully as this will give you a clear understanding of the commitment you are making in terms of the repayment.
- A personal loan typically ranges from 1 to 5 years. You can fix the loan tenure according to your loan amount, your other monthly expenses, and the income that you earn on a monthly basis.
- Ensure that you choose an economical interest rate for your personal loan. With a low-interest rate, your loan expenses will be low and you can repay it without any hassle. You will also avoid any defaults on loans.
- You can choose your personal loan amount depending on your repayment capability, your income, and your expenditures.
- You will need to compute your EMIs before you fix your personal loan amount. This will help you plan your expenses efficiently. You can multiply this loan EMI with your loan tenure to find out your precise loan amount. You can then choose the lowest loan amount.
- Most banks and NBFCs charge a processing fee for a personal loan. You can compare this fee and then decide which loan product you want.
- When you choose fixed interest rate, your loan payment will remain fixed throughout the loan tenure. When you select variable interest rate, your loan payment will depend on the rate. Hence, the loan payment will increase if the rate increases and the loan payment will reduce if the rate reduces.
|Do proper research before you apply for a personal loan||Do not sign your loan documents without understanding every point|
|Do read the fine print carefully||Do not make multiple inquiries regarding personal loans from different banks|
|Do save your money carefully when you are repaying||Do not take a personal loan without any serious purpose|
|Do pay your loan installment promptly every single time||Do not be in a hurry to end your loan comparison process|
|Do evaluate your credit score thoroughly||Do not forget to pay your loan installments|
|Do apply for an affordable loan amount||Do not accept bad personal loan products|
How to Improve your Chances of Getting a Personal Loan?
Different lenders have different requirements for customers who seek personal loans. If you are finding it hard to get a personal loan, here are a few tips to improve your chances:
- One of the main factors taken into consideration by lenders is your credit score. Getting a personal loan is easier with a high credit score. If your score is low, you must check your reports to see if there are any errors. Sometimes, simple errors could have an adverse effect on your scores, and if you find any of these, you must report them to CIBIL.
- Lenders ask for proof of income when you apply for personal loans in order to ascertain your debt-to-income ratio. Consider the sale of liquid assets like stocks or earning more through a part-time job to increase your annual income. Doing so will increase your debt-to-income ratio and increase your chances of getting a personal loan.
- If you are finding it hard to get a personal loan on your own accord, you can apply for one by adding a co-signer or guarantor. The person you choose as a guarantor must have a good credit score and although their main aim is to guarantee that you will repay the loan, they will also be liable to repay the loan themselves if you are unable to do so. Picking an individual with a credit score over 750 will considerably increase your chances of getting a personal loan.
- It can be risky to ask for more money than you require to meet your financial targets. Make sure that you calculate how much you need and apply only for that specific amount.
- Every lender has their own requirements when it comes to credit scores and income. When looking for personal loans, pick a lender whose eligibility criteria you meet and apply accordingly. The problem with applying with multiple lenders is that each of them will check your credit score, and each time your full credit report is pulled out, your credit score drops, albeit marginally.
Basic Guide to Personal Loan
Choose Right Personal Loan
Personal Loan for Low CIBIL Score
Track Personal Loan Application Status
Choose Personal Loan Tenure Wisely
Loan through Peer-to-Peer Lending
Top 10 Personal Loan Finance Companies
Top Banks Offering Loan Refinancing
Get Personal Loan without Documents
Personal Loan FAQs
How can I repay my personal loan?
Personal loan can be repaid in equal monthly instalments or EMI. You can provide a post-dated cheque or can give a standing order with your bank or through electronic transfer.
What is an EMI?
EMI or Equal Monthly Instalment is the amount that a borrower pays each month towards an outstanding loan to clear off the debt within a specific timeframe. EMI includes principal and interest.
Is part- prepayment allowed on my personal loan?
Personal loans can be prepaid in parts or as a whole at any stage. Some banks may charge a prepayment penalty for the same. Some banks do not allow part-prepayment. So, check all the documents before finalising on the loan with the bank.
Will I need a guarantor to take a personal loan?
No, you will not need a guarantor to take a personal loan.
Can I club my income with my spouse to take a personal loan?
Yes, you can club the income of your spouse to boost your eligibility to avail a personal loan.
How will I be eligible for a relationship discount?
If you have been a customer for a particular bank for a while, then the bank might reduce the personal loan interest rate or other such charges. Some banks will also provide you additional services.
Do I need to open a bank account to service my personal loan?
If you do not have an account with the bank, it is not mandatory to apply for one. But, if you apply for a loan with your existing banker, then you will be eligible for a relationship discount.
How do I stop executives from calling me to let me know about other loans?
Some banks let you register yourself for ‘Do Not Disturb’. If you opt for this, the executives will not disturb you with cold sales calls.
What is the best way to apply for personal Loan?
A: The best way to apply for an personal loan is by using the online loan application tool at LoanMrt.com The tool can be accessed on this page allowing users to choose personal loan from various banks and NBFCS as per their selection.
Can I Track my Loan Application?
A: LoanMrt.com offers it’s loan applicants an active tracking tool through both email and SMS allowing them to track daily updates of their loan application.
Is my Data Safe with LoanMrt.com?
A: LoanMrt.com is India’s premier financial marketplace and takes utmost care in ensuring that all data is sent in electronic form with high level of encryption. LoanMrt.com does not share data with any third party other than the financial institution.
Is LoanMrt.com Personal Loan Tool Free?
A: Yes loanmrt.com personal loan calculator tool is totally free and the portal does not charge any fee for its services from users.