Are you in need of funds urgently? For renovating your home or for a wedding in the family? Personal loans can help you fulfil your money requirements quickly. Read this article to learn everything you need about applying for a personal loan in Hubballi.
What is a personal loan?
A personal loan is a type of loan you can take from banks or non-banking financial companies (NBFCs) to meet your personal needs. You can avail of personal loans for Rs. 50,000 up to Rs. 15 lakhs.
Some of the common reasons to apply for a personal loan in Hubballi are:
- Home renovation or making a downpayment for a new house
- Buying electronic appliances like fridges, TV, washing machine, etc.
- Upgrading to the latest smartphone
- To meet expenses for weddings
- For medical emergencies like accidents, injuries, or severe diseases and ailments
- To fulfil education and higher education fees for yourself or your children.
- For vacation or other travelling purposes
- Investing in a new business idea
Features and benefits of a personal loan?
- A personal loan is an unsecured loan. This means that you do not need any collateral like gold or property to obtain the loan amount.
- Unlike a home or car loan, a personal loan is not tied to any asset. Therefore, if you wish to avail of any personal loan in Hubballi, you don’t need to worry about your assets getting seized or going to auction if you default on the loan.
- You can use your loan amount for any purpose you like. There are virtually no restrictions for this type of loan.
- The interest rate for a personal loan in Hubbali can range anywhere from 7.9% to 49% p.a.
- The repayment tenure (time you can take to repay the loan) is anywhere between 12 and 60 months. Your lender may allow you to select the term based on your comfort.
- The loan can be repaid using flexible, pocket-friendly EMI (equated monthly instalment) options.
- If your application for a personal loan in Hubballi is approved, you will typically receive the amount within seven days. Transfer the amount to your account electronically or with an account payee cheque/draft.
- If you apply for a personal loan with a co-applicant (i.e. joint personal loan), you can get a higher loan.
Eligibility criteria for a personal loan
- Typically, a personal loan is offered for salaried employees. However, some banks also allow business people and self-employed individuals to apply.
- The minimum age for obtaining a personal loan in Hubballi is 21 years. The maximum period is usually 60 years.
- Having a good credit score (780 and above) is essential.
- Banks and NBFCs will also check your income and current occupation while approving your application.
Documents required for applying
To apply for a personal loan in Hubballi, you will need the following documents:
- PAN Card
- One copy for identity Proof (Aadhar card, Driving licence, Voter Identity Card, Passport, etc.)
- One document for address Proof (Lease agreement, Passport, Aadhar Card, Telephone Bill, Electricity Bill, etc.)
- Proof of Income, i.e., bank statement and salary slips
What is the maximum amount you can borrow?
While applying for a personal loan in Hubballi, the following criteria may be used by your lender to find how much is the maximum amount you can borrow:
- Current income level: Lenders usually calculate that your EMI is less than 40-50% of your monthly income.
- Lenders will also consider if you have any other existing loans
- If you have a very high credit score (900 or above), lenders can help you increase the loan amount
- If you have any unpaid credit card bills or overdue EMIs, it will affect the maximum amount negatively.
Tips to consider before applying for a personal loan in Hubballi:
- Besides the interest rate, banks also charge other fees for a personal loan like processing fees, documentation charges and cheque bounce fees. So consider these rates also before choosing a lender.
- If you have a very high credit score, you can negotiate to waive some of the charges or get a lower interest rate.
- It is not always best to go for the lowest EMI option. Low EMI means higher tenure for repayment. Therefore, you may end up paying more amount as interest in the long run.
- You can use a personal loan in Hubballi to consolidate all your other loans.
- Like any other loan, if you don’t pay your EMI on time, your lender can use settlements and recovery agents to ensure the loan is paid.
- If you default on a loan, your credit score will reduce. This will make it difficult for you to obtain a loan from any bank in the future.
- Some lenders may provide you with a balance transfer offer. What does this mean? If you already have a personal loan in one bank, you may be able to transfer it to another lender. You can do this if you get better interest rates.
All you need to know about repaying of personal loan
You can repay your EMI amount using pre-dated cheques or an automated electronic transfer system known as Electronic Clearing Services (ECS).
If you want to repay your loan before the tenure is over, you may be charged a penalty fee for the same by your lender. These are known as foreclosure charges.
You may be charged a fee if you want to partially pay off some of the principal amounts before your tenure is over. These are known as pre-payment charges.
If you have an urgent need for money, taking a personal loan in Hubbali through Piramal Finance can help you ease your tensions. Piramal Finance offers personal loans with zero pre-payment and foreclosure charges. Plus, you can get quick sanction of loans with minimal documentation. Click here to read more about taking a personal loan in Hubballi.