Personal Loan is commonly known as all purpose loan it can be uses for fulfilling various legitimate personal needs that includes:
The rate of interest is primarily dependent on:- Company for which the prospective borrower is working. Credit history of the borrower.
Being unsecured in nature, lenders have stricter norms regarding eligibility and sanctioning of personal loan. But some of the basic eligibility criteria the applicant must fulfill are:
Most lenders will require borrower to repay the loan within a period of 12 to 60 months maximum. The borrower can repay the loan by paying regular monthly installments also known as Emi or Equated Monthly installments.
Processing fees varies from lender to lender and will be in the range of 0.5% to 3% (excl. service tax) of loan amount. Generally the processing fee for personal loan is not taken upfront, but is deducted from the loan amount disbursed by the lender.
Documentary proofs required may vary from customer to customer and the financial institute may ask for more documents, if required.