In India, mostly people avail
personal loan for their personal or professional requirements. This is so;
person can use this finance for any purpose and even, customer has not to
provide any specification to the loan provider for availing personal loan in
India. The person can avail personal finance for wedding purpose, medical
emergency, higher education, house improvement, travelling expenses, paying off
debts, purchase of car, paying off utility bills, and many more. Furthermore,
the customer can get finance from banks and financial institutions, like SBI,
ICICI, Standard Chartered, HDFC, Axis, CITI, PNB, Fullerton, DHFL and many
more.
Personal loan in India can be
avail as secured or unsecured finance. Secured loan means the customer can take
personal finance, only if, the person pledge or secure their property or asset
to the lender. The customer has to pledge their property or asset, if the
customer avails loan amount above of Rs.15lacs. The lender provides this loan
at low interest
rates and higher tenure. This is so; the bank can take hold of customer’s
asset or property, in case; the borrower does not repay the amount. Thus,
people with poor or low credit score can also avail the secured personal loan in India.
The customer should go for a secured loan, only if, the customer is ensured
that one can repay the amount.
Unsecured personal finance means
the customer can take finance without pledging any asset or property to the
lender. Therefore, banks provide this finance at high interest rate than from
other loans, i.e. 14-25% for shorter tenure, i.e. 1 to 5 years. The customer
can avail this finance for a minimum of Rs.50000 and can also avail for a large
sum of Rs.15lacs. This finance
is a best option for those people who do not have anything to mortgage with the
lender.
However, bank provides this
finance only on the customer’s creditability, financial position, repaying
ability and source of income. If the person has strong profile then only bank
provides personal loan; otherwise they reject the personal finance application.
The bank checks the customer creditability through their documents that
customer submits with the personal finance application. The bank verifies these
documents and base on them decides about the personal loan interest rates,
amount and tenure.
Thus, customer should be careful
while submitting documents, as lenders takes the decision on the base of these
documents.
