Personal loan is also known as all-purpose loan as it serves all of the personal needs of the borrower. Personal loan is granted for three major categories of need :
• Personal (health and well-being) - Major medical emergencies can be solved enabling you to first get the aid and repay the amount borrowed later. This may be looked upon as a life saver then.
• Family (education or supporting a vacation plan) - Traveling is the hobby of many but it remains pending due to lack of money. If you want to plan a long tour and are ready to pay the amount not at one go but eventually, personal loan can help you.
• Domestic (purchase of household equipment like AC, Refrigerator etc.) - As the lifestyle changes, the needs and wants increases. But the income to source them cannot be amplified suddenly. To fund such immediate needs you can take help of personal loan.
Following are the pick points to be considered when you apply for personal loan:
• This loan is sanctioned on the basis of the credit card history of the debtor. The proficiency of the borrower to repay the loan amount from his/her personal income on time with due interest is considered by the lender (bank).
• The repayment method is shaped over fixed amount of installments in a scheduled period of time.
• It is disbursed in couple of days i.e. 48 hours of application.
• The tenure permitted is of 5 years for personal loan.
• It is an unsecured loan. It gets secured if the borrower presents in front any guarantor or incase if any asset is bought using the personal loan, the asset becomes the security.
• For the approval of personal loan, there is no need to keep anything on mortgage.
Thus, if there is an urgency of money to buy something or fund any activity, personal loan acts as the savior. Personal loan happens to be the most affordable loan amongst all. Personal loan interest rates though fixed with some margins; they vary from bank to bank depending upon the policy the bank works.