It is impossible to always have enough money to make large purchases or cover large expenses. But you can always borrow some money from a lender and repay it with interest over time as you earn. This simple concept is how banks offer personal loans.
While there are many forms of loans, personal loans offer the unique advantage of having no security requirements or usage restrictions. As a result, you can take personal loans from banks or other financial institutions without sacrificing anything as security to back them. And you can use the loan for almost any purpose!
What’s more? You can quickly obtain a personal loan in Dehradun by applying online instead of standing in long queues! However, there are some eligibility criteria, details, and steps that you should know before you apply for a personal loan. This quick guide will cover all these areas to help you get a personal loan at the best rates in Dehradun’s beautiful and fast-growing state. Let’s begin!
What Is A Personal Loan in Dehradun?
Personal loans are unsecured loans in which a financial institution loans you money based on your creditworthiness without requiring any security for the borrowed amount. The amount usually ranges between Rs. 50,000 and Rs. 15 lakhs. Personal loans are generally for individuals, but joint loans with a close family member are sometimes possible.
The lack of security, diversity of purpose, large lending amount, and quick processing make personal loans an excellent option. However, there is a flip side. The fees and interest on personal loans are higher than all other loan types because lenders must take on the additional risks of lending without security.
Moreover, it would be best if you had an excellent credit score to get personal loans; the amount allowed depends on the score.
Dehradun is developing rapidly, and several banks or non-banking financial institutions (NBFCs) now offer personal loans in the state. The factors affecting these loans are:
- Monthly interest rate: 9.30% to 36%
- Processing fees: 0%-6%
- Loan tenure: 1 year to 7 years
- Pre-closure charges: 2%-5%
- Guarantor requirement: none
When is a personal loan necessary?
As we discussed, you can take a personal loan in Dehradun online within minutes and use it to finance any significant expense without putting up any security. These loans are helpful for a variety of purposes, such as:
- Home Renovation
Taking a personal loan if it meets your needs is beneficial. Still, it would help if you took care to meet the eligibility criteria first. You must also ensure you can pay the interest and equated monthly instalments on time. It is critical because failing to make timely payments will lead to a low credit score and poor financial health.
Sounds confusing? Check out the eligibility criteria to help you quickly decide and prepare for personal loans.
Eligibility Criteria For A Personal Loan In Dehradun
Lending institutions apply various criteria to decide your eligibility for a loan and how much to offer. You may also use the online loan eligibility and EMI calculators of the respective banks. It will help you judge the probability of acceptance whenever you apply for a personal loan in Dehradun. Here are some standard criteria considered by most institutions for lending specific amounts:
- Applicants must have an age within a defined range.
- Applicants must receive a minimum defined monthly income.
- The income must be credited to the applicant’s bank account directly.
- The applicant must work for a multinational corporation (MNC), a private or public limited company, or be self-employed with a stable income.
- The applicant must have a minimum defined CIBIL score. Here, the CIBIL score represents your creditworthiness. A central body characterises it as the Credit Information Bureau (India) Limited and varies between 300 and 900.
- Criteria set by the lender.
While other factors may vary, all lenders consider the CIBIL score a fundamental criterion. You can find it easily on the CIBIL site. If it is currently low, you may have to improve it first. It may require measures such as:
- Clearing debts
- Correcting record errors
- Improving income
- Avoiding multiple large loans at the same time
- Making timely credit payments
Online Application Process For A Personal Loan In Dehradun
Ready to get your first personal loan in Dehradun? Before applying, you must make sure you meet the above eligibility criteria. Moreover, you must arrange the required documents, which are:
- Income proof
- Employment records
- Identity proof
- Residence proof
- Bank statements
After meeting these requirements, follow these simple application steps to get a personal loan in Dehradun:
- Visit the website of the lender (a bank or NBFC).
- Choose personal loans under the loan section.
- Click on the “apply” option.
- Fill your details into the personal loan application form and submit it.
- Send the bank the KYC documents—documents that prove your identity and documents that show how much money you make.
- If the bank or NBFC finds you eligible after checking your documents, it will disburse the loan amount to your bank account.
Frequently Asked Questions About Personal Loans
It is critical to clear all doubts before borrowing money, or you may find yourself in a financial bind! So, we have put together a list of some frequently asked questions about personal loans in Dehradun:
1. How much of a personal loan can I get?
The amount you can borrow depends on your income, age, employment type, liabilities, and credit history. Generally, the upper limit for personal loans is Rs. 15 lakhs, repayable up to 15 years. The lower limit is usually around Rs. 30,000.
2. What is the difference between fixed and floating interest rates?
The monthly payments are determined by the interest rate. However, EMIs will progressively decrease if you go for a floating interest rate.
3. How long does it take to receive loan approval?
Loan approval time varies from 2 days to 2 weeks, depending on the bank’s systems, application details, and other conditions. After approval, the bank will disburse the loan within seven working days.
4. How can I use my loan?
You can use your personal loan in Dehradun for any of these activities:
- Home Renovation
5. Which are the best banks or NBFCs for a personal loan in Dehradun?
Many leading banks and non-banking financial companies offer personal loans in Dehradun. One of the most trusted and established loan providers is Piramal Finance.
6. What happens if I default on my scheduled personal loan EMIs?
If you don’t pay your scheduled EMIs, the lender will use settlements and recovery agents to try to get the money back.
If these measures fail, the default will show on your credit report, negatively affecting your CIBIL score. In addition, this will make it difficult for you to get future loan or credit card approvals.
Personal loans are an effective solution to meet significant expenses without security or enough current funds. This guide has covered all aspects of personal loans in Dehradun to help you get started.
However, before applying online, you must check that the website is authentic and your device is free of malicious software. Also, remember to read the lender’s terms carefully any time you plan to apply.
If you still have doubts or find it tricky to get loans, don’t worry. You can always rely on the expertise of an established financial institution like Piramal to get a personal loan in Dehradun at competitive rates and on the most reasonable terms.