Banks and other financial institutions give personal loans. It is important to choose the best among them. At times, getting a personal loan can be too hard. But the right knowledge on where and how to get a personal loan will make your job easier. This article will show you where and how to easily obtain a personal loan.
What Exactly is a Personal Loan?
A personal loan is an amount borrowed by an individual from banks or other Non-Banking Financial Companies (NBFCs). You will pay interest until the loan’s repayment period is over. There is no need to provide security or collateral when applying for a personal loan. You can use the principal amount from a personal loan for any purpose, unlike an educational loan. Thus, personal loans are for personal purposes.
Where and How Can You Get a Personal Loan?
Personal loans are provided by a variety of lenders. They include banks, Non-Banking Financial Institutions (NBFCs), Credit Unions, and personal loan apps.
Almost all lenders will see some basic eligibility from your side. You can get your loan easily by fulfilling the following eligibility. They affect your loan to a larger extent.
Eligibilities for a Personal Loan
Employment status and salary
This is the first eligibility to get a personal loan. The lenders will find it difficult to provide loans for an unemployed person because of their inability to repay the loan. You should be a salaried or self-employed individual to avail of a personal loan.
This is to fix the principal amount. The age range for eligibility is 21 to 60. This is different for different lenders. The higher your age, the lower your chance of getting a personal loan. This is because of the number of working years before retirement. Sometimes, if you are older than 60, you may have to submit collateral or security.
This is one of the important factors for a personal loan. Years of experience and working in the same industry will be a great advantage.
Credit (CIBIL) score
CIBIL score is the most important factor for a personal loan. It is a three-digit number that shows your credit history. The score ranges from 300 to 900. It is always advised to have more than 700 for a personal loan. If your credit score is low, don’t panic. It is possible to improve your CIBIL score. You can check your credit (CIBIL) score online before planning for a personal loan. Checking credit scores is completely free of charge.
The lenders will consider your past repayment history for a personal loan. This will make your profile low-risk. They will also consider timely repayment of EMIs and interest.
Smooth relationship with the lender
Transactions or a good financial track record with the lending institution can have an impact. This will improve your chances of getting a personal loan. This will increase the trust of lenders. This may also determine the interest rate for your loan because lenders won’t be as stringent in this case.
Present market conditions and the government’s steps
The market conditions and the government’s steps directly influence the interest rate. It includes inflation, recession, etc. Inflation is the general rise in prices. The higher the inflation, the higher the interest rate. A recession is a period of decline in economic activity. Interest rates will be lower during the recession.
The reputation of your organization
If you are a salaried individual, the reputation of your organization matters. Working for a reputable company will increase your chances of obtaining a personal loan.
Benefits of Getting a Personal Loan from Piramal Finance
Least Documentation: Piramal Finance will ask you for only a few documents. This will save you time and reduce your burden. The documents required are:
- Identity Proof: Passport, Driving License, Aadhaar, Voter’s Identity Card
- Address Proof: Registered Leave and Lease Agreement, Passport, Driving License, etc.
- Income Proof: Salary Slips, Bank Statements, etc.
Checking the required documents will avoid the last-minute rush. You may bring only one document per proof.
Principal Amount: The principal amount for a personal loan from us ranges even from Rs.1 Lakh.
Quick Sanction: We will sanction your loan and disburse funds more quickly.
Low EMI: We charge lower interest rates for personal loans. It will also be decided based on your ability and creditworthiness. This helps with easy cash management.
Flexible Repayment Period: The repayment method for personal loans is flexible. You can choose any method (fixed type, floating type, or hybrid type). There is an option for pre-closure and pre-payments. It lasts from 12 months to 60 months.
Zero Prepayment and Foreclosure Charges: If you have a large amount, you can pay off the loan before the period ends. We’ll not charge extra for preclosing the personal loan. And there will be no pre-payment charges.
The Bottom Line
We hope you understand the easy way to get personal loans. Personal loans are currently inundating the financial markets. It may seem easier to get a personal loan. But it is important to approach a trustworthy lender like Piramal Finance. Piramal Finance has a team of friendly and knowledgeable financial experts. They will guide you through the entire process. Contact us if you want to take out a personal loan with no prepayment or foreclosure penalties. You can visit Piramal Finance to read more articles like this.