he eligibility criteria. One of the most important elements of the eligibility criteria is the credit score. The personal loan is usually granted to those who have a good credit score ideally above 750. The reason why people prefer to get this is that it is readily available.
What if your credit score is below the required level?
At the end of the day, it is your convenience that matters the most and this is why it is completely up to you if you want to go for either of the options in personal loan.
Lenders have provided people with a low credit score to avail the personal loan at a slightly high personal loan interest rate. What if you do not want to pay a high personal loan interest rate?
In such a case the lender allows you to involve a co-applicant. A co-applicant is a person who helps you in getting a personal loan and shares the responsibility in case you make a default. A co-applicant can be a family member but with a good credit score.
What if you do not want to involve a co-applicant? Banks and NBFCs (Non-Banking Financial Companies) also have the option where you can get a personal loan by providing collateral to the lender. This way you will not have to pay a high personal loan interest rate and you can enjoy the benefits of a personal loan. The personal loan with which you have to give collateral is known as a secured personal loan. In fact, the personal loan interest rate levied on a secured personal loan will be lower than that charged by the lender generally.
SBI personal loan policy proffers the loan with the viable personal loan interest rate and repayment schedules that suit the requirement of the borrower, with or without security.
General personal loans are more in demand because in case of a secured personal loan if you make default the lender will get the legal ownership of the security and lender can auction off the collateral.
Must Read-Key features of a Personal loan
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