- July 4, 2020
- Posted by: Ganeshcbani
- Category: Blog
When you’re looking for a personal loan, there are a lot of options available to you. But which one is the best for you? In this article, we’ll discuss the different types of bank personal loans and give you a rundown of each one so that you can decide which is best for you.
Bank that Offers Personal Loan
Personal loans are a popular financial product in the consumer world of today. There are various providers of personal loans and banks on the market, including: HDFC, SBI, Bajaj Finserv, ICICI Bank , Standard Chartered, Axis Bank, Fullerton, Kotak, IDFC First and Indusind. The best bank is crucial to select by contrasting documents, interest rate deals, procedure and higher loan eligibility.
What is personal loans and who is eligible to receive them?
Personal loan is an unsecured loan given to customers by banks and NBFCs to use the money in order to meet any personal requirements. In India, these loans range from approximately 50,000 to 6,000,000 rupees (60 lakh). These loans are available both to employees and to self-employed customers. Personal loans for students or retired persons are generally not available. You will use these loans on the basis of your income and your history of credit.
Personal loan- Whom can I get from?
Since this financial service is unsecured, you must pass through difficult filters to obtain it. Banks do not offer these loans in a manner that is selective in terms of consumer request when it comes to the availability of these loans. Such institutions are looking for secure revenue, assured income streams and credit history when delivering this service to everyone. You will find out which bank is your right choice and which meets your payment requirements and choices.
Here are some calculations for the personal loan that help you understand how much one lakh of loan per month you have to pay for different tenure periods.
How do a personal loan works?
A personal loan is a ‘unsecured loan,’ which means that you are not required to provide any security in cash, shares or other assets to the loan holder. This may make it more attractive for certain clients who may not be able to offer a collateral asset. Unlike certain other forms of credit, the way the loan is used is not limited – the borrower is entirely free to use the money for all purposes.
As a personal loan is a non-collateral loan, creditors are offering it at a higher rate to try to protect their money. Personal loans are therefore one of the most expensive loans on the retail market. In general, personal loan interest rates are higher than other mortgage loans.
Personal Loan Process
Personal loans are a very quick and effective way to get the required fund when necessary. And why not, they require minimum documentation compared to all other loans and are processed faster. The process begins as soon as it is requested.
Let us take a look at the measures involved to grasp the application as a whole. Right from applying for your loan disbursement.
The application process begins when a particular lender is selected and fill out the application form above and click Submit. Once you press the Send button, your request is registered in our database.
Welcome Call and confirmation
Once we receive your application, somebody from our team will contact you to verify that you actually requested the loan. Once verified, our executive will inform you of all the details you have requested about the lender and the product.
If you have a better offer, the same will be suggested to you. After you confirm your application, a schedule for the collection of documents is fixed.
Set of records
At the time of your choice, our executive visitors will collect all required documents and receive your signature on the application form.
Once you submit all the necessary documents and a signed application, our team will verify the authenticity of all details. These data can only be checked after verifying and cross-checking.
All documentation and application form will be sent on your behalf that you can proceed doing what is relevant to you. The loaner may or may not call you to confirm the information. They will also perform a testing process at their end.
Authorization and disbursement
After the lender checks all your information, the loan processing is complete.
The lender will then tell you about your final loan offer in detail. You will know the following at this stage:
- Final amount of the loan.
- The loan interest rate.
- The loan’s term.
- Production fee and other fees (if applicable).
- Loan terms and conditions.
- The lender must transfer the same details on to you in your chosen contact mode.
- The lender will ask you to sign a loan agreement if you like the offer. This completes all the steps necessary.
- The loan amount will be paid forthwith.
- The benefit you get when you apply online for a personal loan. Anything else will be done by our team and the loan amount will be paid out to your account.
- All of this takes place without any problems you encounter and visit any offices whether our office or the lenders.
Types of Personal Loan
Your loan may be used for any purpose as long as it is legal. There are, however, other lenders who give specific loan products according to the intent indicated in the loan application by the borrower. These are the types of personal loans which can be used in India on the basis of their use:
As the name suggests, a loan offered especially to cover the cost of a wedding is a wedding loan.
Personal loan for home renovation
The cost of repairing or renovating your home is covered by a home renovation loan.
A holiday loan is specially designed for holidays. You can use a loan for your holidays and pay the expenses later via easy EMIs.
Pensioners’ Personal Loan
A loan directly given to pensioners is considered a pension loan.
Festival Personal Loan
Some lenders offer a personal loan exclusively for festivals. If you are looking for a loan for a festival, you can apply for a loan.