Personal loan should I apply or not, know eligibility
Personal loan keeps a very impressive role for needy people causes due to personal loans, a person can achieve many goals for which he requires funds. Personal loans are an unsecured form of credit that is popular to meet immediate requirements. It is multi-purpose in nature and therefore can be used for various purposes including weddings, home renovations, travel purposes, and more. Moreover, there is no restriction on the amount borrowed and can be used for any purpose they want. In fact, a personal loan can help you build your credit faster when compared with other forms of credit. This is because of the risk it carries due to being unsecured.
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A personal loan is an unsecured credit that can be avail from any financial institution based on criteria like employment history, repayment capacity, income level, profession, and credit history. A personal loan, which is also known as a consumer loan is a multi-purpose loan, which you can use to meet any of your immediate needs. Today, an increasing number of people are applying for Personal Loans to meet their larger expenses. One of the reasons for the significant rise in the growing popularity of Personal Loan is that being an unsecured loan, it does not require any collateral and the processing time is quick.
Here are the key features of some of the most popular and best personal loan providers in India as per Policy Bazar’s comparison of the best personal loans offered by banks.
| Name of Lender | Interest rate (%) | Processing fee (% of the loan amount) |
| HDFC BANK | 10.25-21.00 | Up to 2.5% (Maximum Rs 25,000) |
| CITY BANK | 9.99-16.49 | Up to 3% |
| TATA CAPITAL | 10.99 onwards | Up to 2.75% |
| ICICI BANK | 10.50-19.00 | Up to 2.50% |
| BANK OF BARODA | 10.00-15.60 | 2% (Minimum Rs 1,000 and Maximum Rs 10,000) |
| STATE BANK OF INDIA | 9.60-13.85 | Nil across all channels till 31st January 2022 |
| AXIS BANK | 10.25 onwards | 1.5%-2% |
| KOTAK MAHINDRA BANK | 10.25 onwards | Up to 2.5% |
| BANK OF INDIA | 9.35-12.35 | Up to 2% (Maximum Rs 10,000) |
| CANARA BANK | 10.20-13.90 | Up to 1% |
| PUNJAB NATIONAL BANK | 7.90-14.45 | Up to 1% |
| HSBC BANK | 9.50-14.50 | Up to 1% |
| FEDERAL BANK | 10.49-17.99 | Up to 3% |
| UNION BANK OF INDIA | 8.90-13.00 | Up to 0.5% (Maximum Rs 7,500) |
| Bajaj finserv | 13.00 onwards | Up to 4% |
| Punjab & Sind Bank | 9.50-11.50 | Up to 1% |
| South Indian Bank | 10.30-18.05 | 2% |
| IDBI Bank | 9.50-14.00 | 1% (Minimum Rs 2,500) |
| UCO Bank | 10.05-10.45 | Up to 1% |
| IDFC First Bank | 10.49-23.00 | Up to 3.50% (Minimum Rs 2,999) |
| Bank of Maharashtra | 8.45-12.80 | Up to 1% |
| Indian Overseas Bank | 11.30-12.05 | Up to 0.75% |
| Indian Bank | 9.05-13.65 | 1% |
| Dhanlaxmi Bank | 11.90-15.70 | Up to 2.5% (Minimum Rs 1,250) |
| IndusInd Bank | 11.00 onwards | Up to 3% |
Here is a list of five-step guides on how to get a Personal Loan from any bank.
1: Determine your requirement
Step 2: Check loan eligibility
Step 3: Calculate monthly installments
Step 4: Approach the bank
Step 5: Submit documents
Applying for an instant personal loan online is extremely easy and time-convenient. You can complete the entire loan application process from anywhere and at any time, without having to visit the lender’s office. If your loan application is approved, the loan amount will immediately be disbursed into your account.
You can get an instant loan by applying on Top NBFC and P2P Lending Apps which are Offering Instant Loans. It has become easier to avail of an instant cash loan at interest rates of as low as 1% p.m. as there are a number of apps offered by NBFCs and peer-to-peer lending platforms. You can apply for a loan of up to Rs.5 lakh from the comfort of your own home through these apps.
| Apps | Instant Approval In |
| PaySense | 2 business hours |
| Rupeelend | 2 mins |
| CASHe | 24 hours |
| Money View | 2 business hours |
| Credy | 30 Seconds |
| EarlySalary | 24 hours |
| LazyPay | 24 hours |
| mPokket | 24 hours |
| MoneyinMinutes | 5 Minutes |
| QuickCredit | 1 hour |
| FlexSalary | 1 hour |
| Home Credit | 30 minutes |
You should know the rate of interest and other details to know the best bank or institution in the details given below:
| List of Banks/Lenders | Personal Loan Interest Rates | Loan Amount | Processing Fee | Turnaround Time |
| Allahabad Bank | 9.05% – 13.65% | Minimum Loan Amount – INR 50,000 Maximum Loan Amount – 12 times of gross monthly salary for employees having a monthly remuneration of INR 15,000 – INR 20,000 24 times the gross monthly salary for individuals earning above INR 20,000. The maximum loan amount, however, won’t exceed INR 7.50 lakh | 1.22% of loan Amount, Minimum INR 1,228 | Depends on the internal policy of the bank |
| Andhra Bank | 8.90% – 13.00% | Salaried – The loan amount is set in a way that the take-home income is not less than 40% of the gross salary after all the deductions, including the proposed EMI Non-salaried – 2 times the average annual income for the past 3 years as per the Income Tax Return (ITR) | As Applicable | Depends on the internal policy of the bank |
| Axis Bank | 10.25% – 21.00% | INR 50,000 – INR 15,00,000 | 1.50%-2.00% of the loan amount plus applicable GST | |
| Bajaj Finserv | 14.00% – 16.00% | Up to INR 25,00,000 | Up to 3% of the loan amount | Within 24 hours |
| Bank of Baroda | 10.00% – 15.60% | Up to INR 10,00,000 for people residing in metros and urban areas Up to INR 5,00,000 for people living in semi-urban and rural areas | 2% of the loan amount, subject to a minimum and maximum limit of INR 1,000 and INR 10,000, respectively. The fee will also include applicable GST | Depends on the internal policy of the bank |
| Bank of India | 10.35% – 12.35% | Up to INR 5,00,000 – INR 10,00,000 | 2% of the loan amount plus applicable GST | Depends on the internal policy of the bank |
| Bank of Maharashtra | 9.55% – 10.55% | Up to INR 5,00,000 – INR 10,00,000 | 1% of the loan amount plus GST, subject to a minimum of INR 1,000 | Depends on the internal policy of the bank |
| Canara Bank | 11.25% – 13.30% | Six months gross salary or INR 3,00,000, whichever is less | 0.50% of the loan amount, subject to a minimum and maximum of INR 1,000 and INR 5,000 respectively | Sanctions at Branch/RAH – 7 Days Sanctions at Circle – 15 Days Sanctions at HO – 2-3 weeks |
| Central Bank of India | 9.85% – 10.05% | 20 times of gross salary, subject to a maximum of INR 10,00,000. The minimum net take-home income must not fall below 40% of the gross salary after deductions, including the proposed EMI | INR 500 + applicable GST | Depends on the internal policy of the bank |
| Citibank | 9.99% – 16.49% | Up to INR 30,00,000 | Up to 3% of the loan amount | Within 48 hours |
| Corporation Bank | 8.90% – 13.00% | Upto INR 3,50,000 | 1.50% of the loan amount, subject to a minimum of INR 500 | Depends on the internal policy of the bank |
| Dena Bank | 10.00% – 15.60% | Up to INR 10,00,000 for people residing in metros and urban areas Up to INR 5,00,000 for people living in semi-urban and rural areas | 2% of the loan amount, subject to a minimum and maximum limit of INR 1,000 and INR 10,000, respectively. The fee will also include applicable GST | Depends on the internal policy of the bank |
| DCB Bank | 13.00% – 25.00% | Up to INR 5 lakh | 2% of the loan amount | Within 3-4 working days |
| Federal Bank | 10.49% – 17.99% | Upto INR 10 lakh | 0.50% of the loan amount | Depends on the internal policy of the bank |
| HDFC Bank | 10.25% – 17.00% | There’s no maximum limit. Your income, credit score, and repayment capacity will dictate the loan amount | NIL-2.50% of the loan amount plus applicable GST | Within 3-4 working days |
| HSBC | 9.99% – 14.00% | Up to INR 30 lakh | Up to 1% of the loan amount | Within 15 days post the receipt of the application form |
| ICICI Bank | 10.50% onwards | Up to INR 40 lakh | INR 999 -2.25% of the loan amount+ applicable GST | Within 72 hours of the submission of documents |
| IDBI Bank | 9.50% – 14.00% | Up to INR 10 lakh | As applicable | Depends on the internal policy of the bank |
| IndusInd Bank | 11.00% Onwards | Up to INR 15 lakh | 1%-3% of the loan amount plus applicable GST | Within 4-7 working days post receipt of the documents |
| Jammu & Kashmir Bank | 10.30% | Up to 36 months gross salary | NIL | Depends on the internal policy of the bank |
| Karnataka Bank | 12.35% | Up to INR 5 lakh | 0.50% of the loan amount | Depends on the internal policy of the bank |
| Karur Vysya Bank | 11% – 19.00% | Up to INR 10 lakh | 1% of the loan amount | In-principle sanction – 15 minutes |
| Kotak Mahindra Bank | 10.25% Onwards | Up to INR 20 lakh | 0.99%-2.50% of the loan amount plus applicable GST | Within 10 working days |
| Lakshmi Vilas Bank | 11.55% | Up to INR 20 lakh | 0.25% of the loan amount, subject to a minimum of INR 2,500 plus applicable GST | Depends on the internal policy of the bank |
| Nainital Bank | 10.00% – 10.50% | 15 times of net take-home salary, subject to a maximum of INR 3-5 lakh 2 times of average annual income of last 2 years, subject to a maximum of INR 2 lakh for self-employed | 0.50%-1.00% of the loan amount plus applicable GST | Depends on the internal policy of the bank |
| Oriental Bank of Commerce | 8.95% – 14.00% | 15 times of gross salary, subject to a maximum of INR 10 lakh | 0.50% of the loan amount, subject to a minimum of INR 500, plus applicable GST | Depends on the internal policy of the bank |
| Punjab & Sind Bank | 11.10% | Up to 18 times of net monthly salary or INR 3 lakh, whichever is less | 1% of the loan amount plus applicable GST | Depends on the internal policy of the bank |
| RBL Bank | 17.50% – 26.00% | Up to INR 20 lakh | 2%-2.50% of the loan amount | Depends on the internal policy of the bank |
| Punjab National Bank (PNB) | 8.95% – 14.00% | 20 times of net monthly salary or INR 4 lakh, whichever is lower | 1.80% of the loan amount plus applicable GST | Depends on the internal policy of the bank |
| State Bank of India (SBI) | 9.60% – 13.60% | Up to INR 20 lakh | 1% of the loan amount plus applicable GST | Depends on the internal policy of the bank |
| Standard Chartered Bank | 11%-12.50% | Up to INR 50 lakh | 1% of the loan amount plus applicable GST | Within 4-7 working days post receipt of the documents |
| Syndicate Bank | 11.25% – 13.30% | Salaried – 12 months gross salary, subject to a maximum of INR 4-5 lakh Self-employed – upto INR 5 lakh | 0.50% of the loan amount, subject to a minimum of INR 500 plus applicable GST | Depends on the internal policy of the bank |
| UCO Bank | 8.45% – 10.45% | 10 times of gross monthly salary, subject to a maximum of INR 10 lakh | 1% of the loan amount, subject to a minimum of INR 750, plus applicable GST | Depends on the internal policy of the bank |
| United Bank of India | 8.95% – 14.00% | 10 months gross salary or INR 2 lakh, whichever is less | 1% of the loan amount plus applicable GST | Depends on the internal policy of the bank |
| Vijaya Bank | 10.00% – 15.60% | Up to INR 10,00,000 for people residing in metros and urban areas Up to INR 5,00,000 for people living in semi-urban and rural areas | 2% of the loan amount, subject to a minimum and maximum limit of INR 1,000 and INR 10,000 respectively. The fee will also include applicable GST | Depends on the internal policy of the bank |
| YES BANK | 10.70% Onwards | Up to INR 40 lakh | Up to 2.50% of the loan amount subject to a minimum of INR 999 plus applicable GST | Within 5 days from the receipt of the application |
| Tata Capital | 10.49% – 14.25% | Up to INR 25 lakh | INR 999-2.50% of the loan amount plus applicable GST | Within 72 hours from the receipt of the application |
| Fullerton India | 12.00% – 25.00% | Up to INR 25 lakh | 2% of the loan amount plus applicable GST | Within 30 minutes of loan approval |
Personal Loan eligibility calculation uses six factors to determine your eligibility, which are:
| Criteria | Salaried |
| Age | 23 years – 58 years. |
| Net Salary | Salaried individuals with a minimum monthly income of Rs.30,000 (Depends on banks) |
| Total years in job/profession | 2 Years |
| Years in current residence | 1 Year |
| Criteria | Self Employed |
| Age | 28 years (self-employed individuals) and 25 years (for doctors); Maximum age – 65 years ( can be different as per banks) |
| Minimum Turnover | Rs. 40 lakh for non-professionals; Rs. 15 lac for professionals; as per audited financials |
| Minimum Profit After Tax | Rs. 2 lac for Proprietorship Firm/Self employed Individuals and Rs. 1 lac for non-professionals as per audited financials |
| Business Stability | In current business for at least 5 years and minimum of 3 years for doctors |
| Existing relationship with Bank | Minimum 1-year liability relationship (current or savings account) or Asset relationship (loan) either live or closed in the last 36 months; repayment track as required |
You can also use Personal Loan eligibility calculators online for the calculation.
Although the documentation varies from lender to lender, some of the essential documents you must provide along with your application form include:
Here is a list of five-step guides on how to apply for a Personal Loan from any bank or financial institution.
2. Check loan eligibility
3. Calculate monthly installments
4. Approach the bank
5. Submit documents
6. Get Approval and then fund in your bank account
It depends on the current interest rate of the bank which can be increased or decreased. so should check the list of interest rates to know a low-interest rate on a personal loan.
| List of Banks/Lenders | Personal Loan Interest Rates | Loan Amount | Processing Fee | Turnaround Time |
| Allahabad Bank | 9.05% – 13.65% | Minimum Loan Amount – INR 50,000 Maximum Loan Amount – 12 times of gross monthly salary for employees having a monthly remuneration of INR 15,000 – INR 20,000 24 times the gross monthly salary for individuals earning above INR 20,000. The maximum loan amount, however, won’t exceed INR 7.50 lakh | 1.22% of loan Amount, Minimum INR 1,228 | Depends on the internal policy of the bank |
| Andhra Bank | 8.90% – 13.00% | Salaried – The loan amount is set in a way that the take home income is not less than 40% of the gross salary after all the deductions, including the proposed EMI Non-salaried – 2 times the average annual income for the past 3 years as per the Income Tax Return (ITR) | As Applicable | Depends on the internal policy of the bank |
| Axis Bank | 10.25% – 21.00% | INR 50,000 – INR 15,00,000 | 1.50%-2.00% of the loan amount plus applicable GST | |
| Bajaj Finserv | 14.00% – 16.00% | Up to INR 25,00,000 | Up to 3% of the loan amount | Within 24 hours |
| Bank of Baroda | 10.00% – 15.60% | Up to INR 10,00,000 for people residing in metros and urban areas Up to INR 5,00,000 for people living in semi-urban and rural areas | 2% of the loan amount, subject to a minimum and maximum limit of INR 1,000 and INR 10,000, respectively. The fee will also include applicable GST | Depends on the internal policy of the bank |
| Bank of India | 10.35% – 12.35% | Upto INR 5,00,000 – INR 10,00,000 | 2% of the loan amount plus applicable GST | Depends on the internal policy of the bank |
| Bank of Maharashtra | 9.55% – 10.55% | Upto INR 5,00,000 – INR 10,00,000 | 1% of the loan amount plus GST, subject to a minimum of INR 1,000 | Depends on the internal policy of the bank |
| Canara Bank | 11.25% – 13.30% | Six months gross salary or INR 3,00,000, whichever is less | 0.50% of the loan amount, subject to a minimum and maximum of INR 1,000 and INR 5,000 respectively | Sanctions at Branch/RAH – 7 Days Sanctions at Circle – 15 Days Sanctions at HO – 2-3 weeks |
| Central Bank of India | 9.85% – 10.05% | 20 times of gross salary, subject to a maximum of INR 10,00,000. The minimum net take home income must not fall below 40% of the gross salary after deductions, including the proposed EMI | INR 500 + applicable GST | Depends on the internal policy of the bank |
| Citibank | 9.99% – 16.49% | Upto INR 30,00,000 | Upto 3% of the loan amount | Within 48 hours |
| Corporation Bank | 8.90% – 13.00% | Upto INR 3,50,000 | 1.50% of the loan amount, subject to a minimum of INR 500 | Depends on the internal policy of the bank |
| Dena Bank | 10.00% – 15.60% | Up to INR 10,00,000 for people residing in metros and urban areas Up to INR 5,00,000 for people living in semi-urban and rural areas | 2% of the loan amount, subject to a minimum and maximum limit of INR 1,000 and INR 10,000, respectively. The fee will also include applicable GST | Depends on the internal policy of the bank |
| DCB Bank | 13.00% – 25.00% | Upto INR 5 lakh | 2% of the loan amount | Within 3-4 working days |
| Federal Bank | 10.49% – 17.99% | Upto INR 10 lakh | 0.50% of the loan amount | Depends on the internal policy of the bank |
| HDFC Bank | 10.25% – 17.00% | There’s no maximum limit. Your income, credit score and repayment capacity will dictate the loan amount | NIL-2.50% of the loan amount plus applicable GST | Within 3-4 working days |
| HSBC | 9.99% – 14.00% | Upto INR 30 lakh | Upto 1% of the loan amount | Within 15 days post the receipt of the application form |
| ICICI Bank | 10.50% onwards | Upto INR 40 lakh | INR 999 -2.25% of the loan amount+ applicable GST | Within 72 hours of the submission of documents |
| IDBI Bank | 9.50% – 14.00% | Upto INR 10 lakh | As applicable | Depends on the internal policy of the bank |
| IndusInd Bank | 11.00% Onwards | Upto INR 15 lakh | 1%-3% of the loan amount plus applicable GST | Within 4-7 working days post receipt of the documents |
| Jammu & Kashmir Bank | 10.30% | Upto 36 months gross salary | NIL | Depends on the internal policy of the bank |
| Karnataka Bank | 12.35% | Upto INR 5 lakh | 0.50% of the loan amount | Depends on the internal policy of the bank |
| Karur Vysya Bank | 11% – 19.00% | Upto INR 10 lakh | 1% of the loan amount | In-principle sanction – 15 minutes |
| Kotak Mahindra Bank | 10.25% Onwards | Upto INR 20 lakh | 0.99%-2.50% of the loan amount plus applicable GST | Within 10 working days |
| Lakshmi Vilas Bank | 11.55% | Upto INR 20 lakh | 0.25% of the loan amount, subject to a minimum of INR 2,500 plus applicable GST | Depends on the internal policy of the bank |
| Nainital Bank | 10.00% – 10.50% | 15 times of net take home salary, subject to a maximum of INR 3-5 lakh 2 times of average annual income of last 2 years, subject to a maximum of INR 2 lakh for self-employed | 0.50%-1.00% of the loan amount plus applicable GST | Depends on the internal policy of the bank |
| Oriental Bank of Commerce | 8.95% – 14.00% | 15 times of gross salary, subject to a maximum of INR 10 lakh | 0.50% of the loan amount, subject to a minimum of INR 500, plus applicable GST | Depends on the internal policy of the bank |
| Punjab & Sind Bank | 11.10% | Upto 18 times of net monthly salary or INR 3 lakh, whichever is less | 1% of the loan amount plus applicable GST | Depends on the internal policy of the bank |
| RBL Bank | 17.50% – 26.00% | Upto INR 20 lakh | 2%-2.50% of the loan amount | Depends on the internal policy of the bank |
| Punjab National Bank (PNB) | 8.95% – 14.00% | 20 times of net monthly salary or INR 4 lakh, whichever is lower | 1.80% of the loan amount plus applicable GST | Depends on the internal policy of the bank |
| State Bank of India (SBI) | 9.60% – 13.60% | Upto INR 20 lakh | 1% of the loan amount plus applicable GST | Depends on the internal policy of the bank |
| Standard Chartered Bank | 11%-12.50% | Upto INR 50 lakh | 1% of the loan amount plus applicable GST | Within 4-7 working days post receipt of the documents |
| Syndicate Bank | 11.25% – 13.30% | Salaried – 12 months gross salary, subject to a maximum of INR 4-5 lakh Self-employed – Upto INR 5 lakh | 0.50% of the loan amount, subject to a minimum of INR 500 plus applicable GST | Depends on the internal policy of the bank |
| UCO Bank | 8.45% – 10.45% | 10 times of gross monthly salary, subject to a maximum of INR 10 lakh | 1% of the loan amount, subject to a minimum of INR 750, plus applicable GST | Depends on the internal policy of the bank |
| United Bank of India | 8.95% – 14.00% | 10 months gross salary or INR 2 lakh, whichever is less | 1% of the loan amount plus applicable GST | Depends on the internal policy of the bank |
| Vijaya Bank | 10.00% – 15.60% | Up to INR 10,00,000 for people residing in metros and urban areas Up to INR 5,00,000 for people living in semi-urban and rural areas | 2% of the loan amount, subject to a minimum and maximum limit of INR 1,000 and INR 10,000 respectively. The fee will also include applicable GST | Depends on the internal policy of the bank |
| YES BANK | 10.70% Onwards | Upto INR 40 lakh | Upto 2.50% of the loan amount is subject to a minimum of INR 999 plus applicable GST | Within 5 days from the receipt of the application |
| Tata Capital | 10.49% – 14.25% | Upto INR 25 lakh | INR 999-2.50% of the loan amount plus applicable GST | Within 72 hours from the receipt of the application |
| Fullerton India | 12.00% – 25.00% | Upto INR 25 lakh | 2% of the loan amount plus applicable GST | Within 30 minutes of loan approval |
Banks and financial institutions offer personal loans to help you meet your personal financial requirements at times of need, thus helping you meet the uncertainties of life. But a question that bothers many of the applicants very often is how much personal loan can I get on my salary?
In many cases, these institutions consider the salary as an important tool to calculate your eligibility for getting personal loans. Your salary serves as your regular source of income, and thus, it forms the basis of your credibility for making the timely repayment of the amount of the loan. So, the claim for a personal loan depends upon the fixed obligation income ratio.
The following table shows the debt-income ratio and is followed by the method to calculate the same as the money view website.
| Salary | Expected Personal Loan Amount |
| Rs. 20,000 | Rs. 5.40 lakhs |
| Rs. 30,000 | Rs. 8.10 lakhs |
| Rs. 40,000 | Rs. 10.80 lakhs |
| Rs. 50,000 | Rs. 13.50 lakhs |
| Rs. 60,000 | Rs. 16.20 lakhs |
A same-day loan is a type of unsecured personal loan that gives you access to funds instantly, post submitting your application. These loans are very helpful when you are in urgent need of credit. Same-day loans provide you with the required funds to help you meet your various personal needs such as car repairs, medical bills, etc. These loans are sanctioned for a relatively short period of time and carry comparatively higher rates of interest.
Same-day loans are perfect for unexpected financial requirements. When you realize that you need money suddenly for an emergency requirement, you can apply for a same-day loan as your application will be processed immediately. Usually, financial resources are limited when you need instant cash. In such cases, same-day loans from reliable lenders are the best go-to options.
Getting a personal loan is a good idea if you have a stable income and a good credit score because you will then be offered a low rate of interest. On the contrary, with an unstable job and a low credit score, the interest rate offered to you will be comparatively higher. It is not advisable to apply for a personal loan each time you have a major expense.
You could get a personal loan for various reasons from funding your wedding to paying off existing loans. Banks approve personal loans on the basis of your income and rarely on the basis of the purpose. Here are some of the reasons why you could get a personal loan:
1. Consolidate your debts
If you have maxed out all your credit cards, or you have many loans that you wish to pay off, you could get a personal loan. Ideally, you should do this only if your income has increased and your credit score has improved. Otherwise, it could be a bad idea.
2. Refinance your education
When it comes to education, personal loans are not the best choice. Education loans come with comparatively lower interest rates and various benefits. However, you could get a personal loan to take care of any expenses that may have cropped up.
3. Renovate your home
You could get a personal loan for home improvement. The home renovation could make your home comfortable and bring you much-needed peace of mind. Moreover, the renovation could add value to your home in case you are looking to sell it in the near future.
4. Pay for your wedding
Indian weddings are a considerably expensive affair. You may be tempted to use your credit card for all your purchases but it is best to get a personal loan instead. That way, you can repay the loan eventually.
5. Finance a purchase
Let’s say you wish to take a break and go on a solo trip or you wish to buy furniture for your home, you can go ahead and get a personal loan. If you do not have sufficient savings at the moment to fund your purchase, you can make use of a personal loan.
6. Medical emergency
If you or your family member needs surgery immediately or was diagnosed with a critical illness, you could get a personal loan to take care of the expenses. While getting a personal loan is always an option, it is best to get a health insurance plan for you and your family so that you are protected from such emergency scenarios.
Personal loans are relatively easy to get. You can apply for a personal loan and get the amount disbursed within a week. However, you should make sure that you really need the loan when you apply for it. Here are a few reasons why you shouldn’t get a personal loan:
1. Impulsive decision
If you have the option to save up for the expenditure you are planning, it is always best to save up over a period of time and then make the purchase. Instead of paying the EMI with interest, you could save up the same amount every month and buy the item, say, six months down the line.
2. Bad investment
If the amount you spend is not going to give any fruitful result, it is a bad investment. The money you borrow, through a personal loan, should add value to something, only then should you get it.
3. Low credit score
If your credit score has just taken a hit, it is best not to apply for a personal loan as you may be charged very high-interest rates. Also, if you are unable to repay the loan, your credit score will go further down. Thus, repay all your existing loans and then get a new loan if necessary.
4. Unstable job
Personal loans are usually offered on your income. If you do not have a stable job, banks are most likely to charge a high rate of interest. So, think wisely before you decide to get a personal loan.
Yes, you can get a loan without a job, as long as you provide an alternative source of income, put up collateral, or find a cosigner. Lenders won’t discriminate against you just because you don’t have a job, but they will require you to demonstrate the ability to repay what you borrow somehow. Below, you can find some detailed tips on the various ways to get a loan without a job.
How to Get a Loan Without a Job
Find an alternative source of income and this can include benefits like unemployment, retirement, disability, alimony, or child support. You could also draw from assets such as a savings account, trust fund, or investments. And you’re allowed to put down a spouse/partner’s income that you have reasonable access to, among other sources of income.
To be eligible for a Personal Loan, you must be between the ages of 21 to 60.
HDFC Bank requires a minimum credit score of 650 to be eligible for Personal Loans. The credit score can vary from bank to bank.
The factors that affect the eligibility for Personal Loans are
This usually depends on the lender, but the lender can ask for a guarantor if you have a poor credit score.
The best way to improve your Personal Loan eligibility is by maintaining a healthy repayment history.
why you should have car insurance check types
An Accountant, GSTP, GST blogger, Website Creator, SEO Builder & Co-founder of the website https://gstportalindia.in for the help of GST Taxpayers of India. Having a perfect accounting experience of more than 10 years in a Private Ltd Company.
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