The credit facilities provided by the financial institutions (banks and non-banking financial companies) are shaped as per the current regulatory requirements and the needs of the borrower (individual or entity). These couture offers are available to all, with terms and conditions applied. Finding the right credit facility is exhausting but a very crucial task. A perfect credit facility is one that suits your needs and doesn’t hurt your finances. In the credit market, various credit options are available to the individual or entities and all the options have their own characteristics and features that make them special and efficient in their own way. Some credit facilities have further types under them.
Each specific credit facility has certain benefits and drawbacks and is preferred by different borrowers (individual or entity) as and when called for. Similarly, when an individual or entity is going for a personal loan they do have options. A personal loan is a collateral-free loan given out by the banks and non-banking financial companies at captivating interest rates and is available for all who need quick financing with the less elaborate procedures involved. Bajaj Finance personal loan is available for individuals and entities with less paperwork and a feasible rate of interest.
A personal loan is granted based on various factors and the two most important factors, besides the eligibility criteria, are the credit score and the monthly income of the individual or entity. The credit score represents the creditworthiness of the individual or entity. A good credit score implies that an individual or entity has not made any delays or defaults in payment of credits taken in the past. As far as the monthly income is concerned, for this, the minimum limit is specified by the financial institutions (banks and non-banking financial companies). The monthly income of the individual or entity determines the repayment capacity and on this basis, the financial institutions (banks and non-banking financial companies) finalize the personal loan amount.
The personal loan usually provided by the financial institutions (banks and non-banking financial companies) is unsecured and this is what makes the approval and disbursal process of the personal loan so swift and smooth. The financial institutions (banks and non-banking financial companies) do not have to evaluate the collateral and they just have to consider the credentials of the individual or entity. There are situations where the individual or entity does not meet the certain requirements of the financial institutions (banks and non-banking financial companies) and this may lead to dismissal of the personal loan application.
When they say that personal loans are for everyone, they mean it. The personal loan facility has an option where if the individual or entity does not have a good enough credit score or the repayment capacity is not as per the standards then they can make a personal loan by pledging an asset with the financial institutions (banks and non-banking financial companies). The personal loan with the collateral now becomes a secured personal loan. The secured personal loans do come with a slightly low personal loan interest rate but there is always a risk of the collateral being auctioned off in case of default.
When deciding which type of personal loan to go for, the individual or entity should assess their current scenario and understand what they need, and as per the conclusion of their assessment, they can select the suitable option.
From a bird’s eye view, a personal loan whether secured or unsecured, both are preferred by the individuals and entities because of the accessibility and the comfort they bring along. Nowadays the individual or entities acquiring funds from a personal loan can even use the personal loan EMI calculator to find out the estimated they will have to bear if they get a personal loan. With ample benefits on both the side, the personal loans have grabbed the attention of the borrowers and its demand is growing constantly.
Dialabank is India’s first financial helpline with services available in various cities. To know anything related to the personal loan, an individual or entity can easily go to Dialabank’s website and find the appropriate policy without any hassle.
Read More:- Factors impacting the personal loan application
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