Personal Loan On Your Mind?

Personal loan On your mind? Here are the complete details you must know about before availing a personal loan. Read to know more!

13 Dec,2022 11:32 IST 24 Views
Personal Loan On Your Mind?

Imagine a situation where you have been saving for years to pay for your child’s education, marriage, or to buy a new home. However, unforeseen circumstances can force you to dig into your savings for other purposes. The best way to avoid using your savings for current financial emergencies is to avail yourself of a personal loan with an affordable personal loan interest rate.

What Are Personal Loans?

Personal loans allow individuals to raise immediate capital to cover expenses, including marriage, education, vacation, home renovation, etc., or combat emergencies. Like other types of loans, lenders charge a personal loan interest rate. Once taken, the borrowers are liable to repay the personal loan principal amount along with interest to the lender within the loan tenure.

Why Personal Loans: The Benefits

A personal loan is ideal for individuals who want to cover their expenses but do not want to use their savings or have inadequate cash. It provides the following features and benefits:

• Immediate Capital:

A personal loan allows individuals to raise quick capital as quality lenders approve and disburse the loan amount in minutes. During financial emergencies, the loan can help cover expenses without delay.

• No End-Use Restrictions:

One of the best features of a personal loan is that there are no restrictions on the end use of the loan amount. The borrower can utilize the amount to cover any personal legal expenses.

• No Collateral:

Personal loans do not require the borrower to pledge collateral. This way, they can obtain a personal loan without owning a valuable asset.

• Personal Loan Interest Rate:

One of the best benefits of availing of a personal loan is the charged personal loan interest rate. Compared to other types of loans, personal loan interest rates are lower and mitigate the chance of a financial burden and default at the time of repayment.

Personal Loan Eligibility

Personal loans are unsecured and do not require collateral. Lenders have set an eligibility criterion to ensure they offer the loan amount to creditworthy individuals capable of repayment. Here is the personal loan eligibility.

• Age:

The age of the applicant should be between 21 years-65 years.

• Employment:

The applicant should be a salaried employee or a self-employed individual with a regular source of income.

• CIBIL Score:

The applicant should have a CIBIL or credit score of 750 or higher.

• Monthly Salary:

The monthly salary or income of the applicant must start from Rs 22,000, depending on the city of residence.

Documents Required For Personal Loans

The lenders analyze the personal loan application provided by the borrower to determine the loan interest rate. However, submitting a loan application requires some documents for KYC completion. Here are the documents needed to avail of a personal loan:

• Selfie:

The selfie of the applicant as photo proof.

• PAN Card:

The valid PAN Card of the applicant as ID proof.

• Aadhar Card:

Aadhar card or driving license of the applicant for address proof.

• Employment Proof:

Employment proof for salaried employees/ Proof of business existence for self-employed individuals.

• Bank Statements:

Bank statements of the applicant for the last 6-12 months for creditworthiness.

• E-sign:

e-Sign or e-Stamp for quick personal loan disbursal.

Things To Consider For Getting A Low Personal Loan Interest Rate

When applicants apply for a personal loan from a lender, the interest rate fluctuates within a set range. The lender may charge the minimum, maximum, or any personal loan interest rate. However, you can consider the following to ensure a low-interest rate.

• Credit Score:

Lenders prefer to offer a lower personal loan interest rate to applicants with a higher credit or CIBIL score. You must have a credit score above 750 out of 900 at the time of application. The higher the credit score, the lower the personal loan interest rate.

• Loan Tenure:

You must refrain from extending the loan tenure over the offered loan tenure by the lender. Although it will reduce the monthly EMIs, you will be paying a higher personal loan interest rate to repay the loan amount.

Avail Of An Ideal Personal Loan With IIFL Finance

IIFL Finance provides comprehensive and customised personal loans. The personal loan calculator is perfect for determining your repayment obligations. You can get up to Rs 5 lakh instant funds with a quick disbursal process. You can apply online or offline by visiting IIFL Finance nearest branch and verifying your KYC details.

FAQs:

Q.1: What is the interest rate on IIFL Finance personal loan?
Ans: The interest rate on IIFL Finance personal loan starts at 11.75%.

Q.2: Do I need collateral for a personal loan from IIFL Finance?
Ans: No, you do not need to pledge any asset as collateral to take a personal loan from IIFL Finance.

Q.3: Do I need to present the expenses to IIFL Finance to utilize the personal loan amount?
Ans: No, you can use the personal loan amount for any expense. There are no end-use restrictions on using the personal loan amount.

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