How Can I Get a Personal Loan?

Posted by KushiBL on March 25th, 2020

How Can I Get a Personal Loan?

It’s not a million-dollar question, yet it’s a question that yields a million dollars! Working towards smart money is a quick solvent for any problem. Explore Buddy Loan in order to reap more benefit for a personal loan.

Personal loans can be used for a variety of purposes such as paying off for marriage, medical expenses, renovating your house, supporting your child’s education, or even paying back an existing loan.

How can I get a personal loan? What are my personal loan requirements? How can I check my eligibility for a personal loan? The questions are unending. But the answers are often scattered across – hidden in loan pamphlets, conveyed hurriedly by loan agents or inscrutably described by the bank or financial websites. Here’s some easy information on this topic.

Determine your personal loan amount

• Take stock of your requirements. Always borrow more for incumbencies and not for unnecessary spending.
• Personal loans are pricier financial products than home loans, so borrow with caution.
• Analyze your take-home salary or yearly income vis-à-vis EMI of the personal loan.

How much personal loan can I get for my income?

The rules are simple:

• Higher the income, higher is the personal loan eligibility
• Check your credit score. Some banks want credit scores in excess of 700; some can do with a little less.
• Non-Banking financial institutions usually cap personal loans at Rs. 15 lakhs. In other cases, individuals can get a personal loan that is 30 times their net take-home salary per month or net income per month.
• EMIs of loans is either from the monthly salary or income of the borrower.
• Check for pre-approved offers. Call up the financial institution customer care to check.
• Approach the bank

Types of personal loans

Common personal loans need no collateral. Personal loan interest rates are therefore higher. However, to obtain them, you may need a good credit score. Interest rates can be as low as 10% to a higher slab of25% depending on the bank and type of personal loan product.

Unsecured

1. Needs no collateral.
2. Disbursed faster. Generally, in a week.
3. May be based on a good credit score

Secured

1. Require collateral as security. It could be in the form of property papers, car title ownership papers etc.
2. Some banks offer secured personal loans online where the borrower can borrow money against their car, home, property etc.
3. Interest rates are nominal.

Fixed-rate

1. EMIs of fixed-rate personal loans do not vary.
2. The advantage is that if interest rates of loans become higher, the rates of fixed-rate personal loans remain the same.

Variable-rate

1. EMIs of variable-rate personal loans vary.
2. The advantage is that if interest rates of loans become lower, the rates of variable-rate personal loans also lower.

Debt combining personal loans

1. Multiple debts, in the form of other loans, home loans, car loans or credit card payments can be consolidated into a single personal loan.