A personal loan is a form of credit that allows you to access funds needed for personal expenses. You can use it for home improvements or to celebrate the holidays without having to use your assets as collateral. A personal loan is an unsecured debt that requires few formalities. You can get it in minutes from anywhere in India by applying online on our website, and once approved, you can receive the money very quickly.
What is a personal loan?
A personal loan is a type of unsecured loan that is used for your personal needs. You can apply for a personal loan from any bank or NBFC (non-banking financial company) in India. The interest rate on this type of loan is usually higher than on other types like home, car, and education loans. There are many reasons why you might need a personal loan.
Whatever the reason, it’s important to know how much you can borrow before applying for one. During the festive season, you might want to buy many things. This is when you need a personal loan the most. You can use the money to buy gifts, organise parties at home and the office, or even travel abroad with your family and friends.
Personal Loan During Festive Season
The festive season brings a lot of joy and happiness. You need money to enjoy this season, and you don’t want any restrictions. To meet these requirements, you can apply for an online personal loan to help you get the money instantly at the lowest interest rates possible. The process is straightforward and takes only a few minutes to complete.
Once you complete all formalities, it takes only a few minutes for the banks to approve your application and send the money to your bank account. You can use the money for any purpose, which is completely hassle-free. The best part is that each borrower’s interest rates are different based on their credit score and income.
Personal Loan Interest Rate
It is important to understand the interest rates if you are looking to apply for a personal loan. The interest rate will also depend on the loan you have taken out. For example, if you have taken out a short-term loan, it will be cheaper than a long-term one because the latter has a higher risk associated with it.
Personal loan interest rates can vary from one company to another. You will be charged to determine the personal loan interest rate; you need to compare different lenders and their interest rates. This way, you can get the best deal possible on your loan.
Interest rates on personal loans are fixed at the time of approval. Unlike floating rates, the interest is fixed and will remain constant for the entire tenure of the loan. The interest rate on personal loans ranges from 12% to 30%. The interest rate is determined by many factors, such as the industry, credit score, loan amount, and term of repayment.
Eligibility to Apply for a Personal Loan During the Festive Season
The festive season is the most popular time of year for people to apply for personal loans. However, if you are considering applying for one, there are some things to consider first. For example:
- You should be in between 21-60 years of age
- You must live in India and have a valid ID, like a PAN card, passport, voter ID, Aadhaar card, driving license, etc.
- You should have valid residence proof like an electricity bill, ration card, telephone bill, bank passbook, etc.
- You should have a regular income source and provide at least six months of employment proof.
- Your salary should be a minimum of INR 25,000.
- Your credit score should be good enough to get approval for a loan.
- You should have an active bank account and decent transactions to prove your credibility.
- After taking into account the EMI on the personal loan, the FOIR ratio should be between 50 and 55%.
- You should be able to pass the eligibility check.
How to apply for a personal loan online?
The first step to applying for a personal loan is to search for one on the internet. Many companies provide personal loans, but you must choose the right one.
The second step is to refer to the Personal Loan EMI Calculator and calculate your monthly instalment based on your income, existing debts, and other expenses like rent, mortgage, utility bills, etc.
The third step is to get a personal loan from any bank or NBFC that offers low EMI rates so that you can pay it easily without any trouble in the future. The fourth step is to compare the APL, interest rate, and other charges with those of other banks or NBFCs so that you can get a better deal.
Once all these formalities are over, select the amount of loan required along with the tenure option and submit it online along with some basic details such as the name of the applicant, address, etc.
After entering these details, confirm them once again before submitting, because if there are any errors, it may lead to the rejection of the application form by the lender company. Once the application is submitted, it takes around 1-3 days for approval from the lender company, and once approved, you will get a confirmation message on your registered mobile number.
Personal loans are available in any amount, starting from Rs. 1,00,000 up to Rs. 10 lakhs or more. Here, you don’t need to disclose the purpose of taking the loan.
The key to getting a personal loan at the lowest possible interest rate is to shop around, compare different lenders, and choose a lender who will offer you the best deal. It’s also important to keep track of your credit score and report to avoid future surprises.
This blog covers what you need to know about personal loans and how to get the best deal from your lender. If you have any queries related to this topic, don’t hesitate to contact Piramal Finance for any query or assistance related to personal loans this festive season.