Unknown facts of Personal Loan

1. Personal loans are unsecured loans but why?
   
   
   Unlike other types of loans that can be withdrawn for a specific purpose such as buying a car or house, a personal loan can be taken to reach any kind of financial goal. Indian Overseas Bank Personal Loan can be used to renovate a home, fund a wedding or international holiday, and consolidate debt.
   
   
2. The maximum amount that can be borrowed
   
   
   The amount of loan eligible for a loan varies depending on their monthly income. While calculating the loan amount, the person's monthly income and expenses are all taken into consideration. Indian Overseas Bank Personal Loan offers a minimum loan of Rs 50,000. 
   
   
3. Who is eligible for a personal loan?
   
   
   Both salaried and unpaid are eligible for Indian Overseas Bank Personal Loans. To apply for a personal loan, the applicant must be at least 21 years old and not more than 58 years old (those with a salary). The upper age limit for self-employed is 65 years. With regard to the monthly income, the minimum monthly income of the applicant is Rs. 25,000.
   
   
4. How long does it take to process and deliver?
   
   
   One of the advantages of Indian Overseas Bank personal loans is that the processing time is much faster. Loans do not require a lot of paperwork. In most cases, the applicant must submit proof of address, proof of identity, and proof of income. Most banks allow their customers personal loans in advance and in these cases, documentation is not even required.
   With regard to the disbursement of the loan amount, the loan amount will be disbursed within 48 hours after the completion of the documentation and verification process. In some cases, banks offer instant loans to pick up customers delivered within minutes of applying.
   
   
5. Repaying the loan amount?
   
   
   The repayment policy for a personal loan is in the form of a monthly EMI. The amount of interest charged on the loan to be paid. Indian Overseas Bank stands instructions against customers’ bank accounts and deducts the monthly EMI on a specific date. Additionally, customers can also choose to repay the amount taken before the end of the loan term. Most banks require customers a total of 12 months of EMI payments before repaying the entire loan amount. Banks usually charge a small fee in the form of foreclosure fees for loans that are repaid before the loan term expires.
   
   
6. What is the interest rate?
   
   
   The interest rate on personal loans is usually slightly higher than other types of loans. Indian Overseas Bank personal loan is unsecured loans which is the main reason for this. The interest rate charged on personal loans is 10.99% and 22% p.a. Many factors come to mind when determining the interest rate for a personal loan. Some of them include loan tenure, borrower’s credit score, and ability to repay. Generally, people who choose a longer tenure for their personal loans pay a higher amount in the form of interest. In addition, borrowers with a lower credit score and a repayment history are charged higher interest rates.

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