Dialabank: 3 Things to keep in mind when taking a personal loan

A personal loan acts as a saviour whenever a financial crisis knocks at your door. Nowadays, it is not a difficult task to avail for a personal loan as all the banks, NBFCs and financial institutions provide this facility at minimal documentation. The best thing about a personal loan is generally they do not ask for any collateral deposit to the bank for loan approval. Mostly, Personal Loan Interest Rates are high due to being an unsecured loan. In case you have a good credit history and a stable source of income, you can get personal loans at a reasonable rate of interest.

You need to keep these 3 things in minds before taking a personal loan:

How personal Loan Works: Once the banks approve your loan application form, the loan will be disbursed to your account within a couple of days. You need to repay this amount of money as EMIs on a monthly basis. The tenure of the loan generally ranges from 12 to 84 months. You will only be eligible to apply for a new loan once you have repaid the previous amount of loan and all dues. Banks do not restrict the usage of the loan amount for any specific purpose, hence it can be used as per the need of the borrower.
To calculate your EMI click here: Personal Loan EMI Calculator
Types of Personal Loan: There are mainly two types of personal loan

Unsecured Loan- As the name suggests, the banks do not require any collateral or mortgage deposit as a security in order to approve the loan. If the applicant fulfills the Personal Loan eligibility criteria and has a decent credit score and source of income then they shall get the loan without any inconvenience.
Secured Loan- In this type of loan, the applicant can put their asset as security to the bank. In case the borrower fails to repay the loan amount, then the bank can claim the deposited asset. The interest rates in such cases are generally lower than unsecured loans.

Interest rates and Additional Charges: Apart from the interest rate that needs to be paid there are various other additional charges as well

Interest Rate: Different banks provide different rates depending upon the profile of the applicant. Generally the Personal Loan interest rate ranges from 10% to 36%. It is not advisable to extend your tenure as you’ll end up paying a heavy amount of interest.
Processing Fees: Processing fees is basically the amount required for the processing of your personal loan application form. This is generally 1.2%-2.5% of your loan amount. An individual must pay the processing fee without fail to facilitate the further process
Prepayment Charges: In case any individual wishes to close their loan before the agreed tenure then the banks charge a penalty amount known as prepayment charge.

To get instant personal loan, visit DialaBank.

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