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Written by Site Administrator
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Wednesday, 28 October 2009 05:09 |
A personal loan is the money that you can borrow to meet your emergency personal expenditure. This loan is generally given for a short term period of up to 5 years and the interest rates are the highest when compared to any other loans offered by banks.
There is relatively less paper work for personal loans. The amount and the interest payable are deducted from your salary account in the form of equated monthly installments. The amount that is sanctioned for an individual in the form of a personal loan is likely to vary based on their salary and details of other existing loans on their name tha are currently active.
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Written by Site Administrator
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Wednesday, 28 October 2009 05:12 |
Owing to its high interest rates, a personal loan cannot be reasoned as a good option. The only advantage it has to its credit is that it can be obtained easily with relatively less paperwork and you can enjoy repayment tenure of upto 5 years.
If you need emergency amount for a really short term of one year or less, it is better to obtain a loan against your property. By ‘property’ we mean, Gold, Assets, Shares, Insurance, etc. The bank will keep these as security with them and lend you the money for one year. The interest rates are also very low in this case. The only catch is that you cannot extend the repayment term for more than one year. After the expiry of the payment term, you must repay the entire amount and release your property from the bankers. Otherwise, the property will be auctioned by the bank to recover the money lent.
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Written by Site Administrator
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Wednesday, 28 October 2009 05:17 |
Persons domiciled in India and having a regular source of income through salary or through personal business are eligible to apply for a personal loan.
Note that eligibility is a mere prerequisite for being able to apply and does not automatically mean that the loan will also be sanctioned. Once you apply for a personal loan, the bank will review your application and approve or disapprove your loan request.
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Written by Site Administrator
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Wednesday, 28 October 2009 05:25 |
Banks and Financial Institutions can issues anywhere between Rs. 50,000 to 20 lakhs in the form of personal loan.
For salaried individuals banks will lend any amount that you can repay by paying an EMI of upto 40% of your monthly take home salary. This will include all other existing loans also. So you must first declare all other loans you have on your name and submit banks statements for your accounts along with the application. The bank will evaluate your documents and arrive at a figure for you that you can comfortably repay.
For business people, your profit margin in business is considered as the yardstick for measuring the amount you can get.
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Last Updated on Wednesday, 28 October 2009 05:58 |
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Written by Site Administrator
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Wednesday, 28 October 2009 05:27 |
Follow the steps below before you apply for a personal loan. This will allow you to maximize the loan amount as much as possible.
1. Apply jointly keeping your spouse or child (who are also earning) as co-applicant. Their income is also considered when calculating the eligible loan amount. As a result a larger sum may be sanctioned as loan.
2. Main a good credit history
If you have too many bounced payments etc in your bank statements your credibility suffers a beating and you may sometimes even by disapproved for a loan. Always maintain enough balance in your account to meet all automated payments in your account. Keep track of all your payment and make sure that you are doing them on time without delay.
3. Close all existing loans on your name before applying for a personal loan. There is the risk of your existing loan EMIs being first deducted from your take home salary before calculating your eligible loan amount. This will reduce your loan amount drastically. If your account is clean and does not have any existing loan payments to be made, you will get maximum personal loan.
4. Your educational qualifications, the area where you live, your stability in your career and the reputation of your employer are also considered when calculating the amount you can get as personal loan. If you are working with one employer for more than 1 or 2
5. Apply for a personal loan two to three months after you get a salary hike. As the recent hike in your salary would have reflected in your bank statement, the bank will consider this amount when calculating your eligible loan amount. |
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Personal Loan
