What happens when an emergency arises and you don’t have the money to deal with it? This can happen for several reasons such as a medical emergency, child marriage or education, paying off your debts, etc. This is when the personal loan can help you immediately with minimal documentation. A personal loan is an unsecured loan that you can borrow if you need funds to pay for your financial needs. Most banks offer personal loans up to Rs 25-30 lakh, but some banks can even offer you more depending on your monthly income, credit score and needs.
The best thing about personal loans is that you can use the fund for any purpose, such as home improvement, marriage or education of your children, medical expenses or even a trip to a foreign country. for holidays. Some people prefer personal loans because they offer flexible repayment options and suitable repayment tenure.
Nowadays, personal loans are easily available. You can apply online on the banks’ websites, through their mobile apps, or even visit any nearby branch. If you meet the eligibility criteria and have a good credit score, you can get the personal loan approved within hours or days, depending on your lender. For existing customers with a good track record, banks also provide pre-approved personal loans at lower interest rates and are readily available.
Since a personal loan is an unsecured loan, a good credit score plays an important role. Banks attach great importance to the credit rating in the assessment of creditworthiness. If you have a credit score above 750, your chances of getting a personal loan increase dramatically. However, you should evaluate all options and carefully review the terms and conditions of the personal loan. You need to check the processing fees, hidden fees if any, foreclosure fees etc. refunds, according to BankBazaar.
It is advisable to use a personal loan only to meet your needs. Avoid taking out multiple personal loans because if you default or delay paying your EMIs, it can land you in a financial crisis and your credit score can also be affected. Also remember that too many loan applications lead to multiple credit applications, and these applications can show you as a credit-hungry customer, and this can impact your credit score.
Request an amount that meets your needs. If you borrow beyond your ability to repay, it can worsen your financial difficulties. Also, do not forget to provide authentic documents and information to the banks. During the processing of your loan application, if something is found to be false or incorrect, it may result in your loan application being rejected. Keep relevant documents handy before applying and compare interest rates and EMIs for the loan amount you need. This gives you an idea of how much money you will need each month to pay for your IMEs without being financially affected.
Loan approval depends on several factors, as eligibility criteria may vary from bank to bank. But there are some basic criteria, such as your age, income, credit score, employment status, etc., which play an important role in helping you get the personal loan hassle-free.
The table below helps you compare the interest rates of several banks for a loan amount of Rs 5 lakh for five years, as well as the EMIs you will have to pay for this loan. It has 25 banks to help you compare and decide on lender and interest rates based on your needs, eligibility and convenience.
Interest Rate and EMI on Personal Loan
Compiled by BankBazaar.com
Note: Interest rates on personal loans for all listed public and private banks (BSE) taken into account for the compilation of data; Banks whose data is not available on their website are not taken into account. Data collected from respective bank’s website as of 03 May 2022. Banks are listed in ascending order on the basis of interest rate, i.e. the bank offering the lowest interest rate on the personal loan is placed at the top and the highest at the bottom. The EMI is calculated on the basis of the interest rate mentioned in the table for the Rs 5 Lakh loan with a tenor of 5 years (processing fees and the like are assumed to be zero for the calculation of the EMI); The interest and charges mentioned in the table are indicative and may vary depending on the general conditions of the bank. * Rack interest rate; ** min APR from January 22 to March 22; *^for seniors