You, as a loanee, can use the money for any of the following purposes:
1. Wedding in your family.
2. Traveling to a foreign country.
3. Medical emergency.
4. Renovating your house.
5. Your child’s higher studies.
It may seem simple but the process of getting a personal loan issued is a laborious one. The time and efforts required to get the approval for a personal loan is an entirely different job altogether. The bank issuing the loan can ask for many separate documents, like proof of employment, salary slips, and house ownership details. But the documents are not the sole criteria for banks to determine whether your loan application will be approved. You also need to have a good credit history and a decent CIBIL (Credit Information Bureau (India) Limited) score.
The advantages of personal loans are:
There is no restriction for you to use the loan money for a specific purpose. It can be for any personal financial help, be it day-to-day or an immediate large amount of expenditure.
You are not required to provide any security to the banks in the form of cash, shares, or any other assets, i.e., no need for any collateral. That’s why they are also popularly called unsecured loans.
Since the banks do not ask for any security deposit while lending them money, they apply a few curtailments in order to ensure that the loan applicant is eligible for the loan and is capable of repaying the loan within the specified time limit. For the application to be approved, the person should:
1. Be an Indian citizen.
2. Be above the age of 21.
3. Have a stable and well-paying job.
4. Have a minimum monthly income limit of 12000-15000.
5. Have a decent CIBIL score.
These are some of the eligibility criteria that the banks use while issuing a personal loan. The main step is selecting the best-suited scheme for taking a personal loan. The few tips that can help a person to choose the best plan from the lot are:
1. Comparing the rates of interest.
2. Comparing the fees and charges.
3. Knowledge about your EMIs.
4. Read the Fine Print Carefully.
There are various banks within the money domain and it is vital to have acceptable information about the best interest rates and the minimal restrictions based on the applying individual. Standard Chartered is one such reputed bank that provides personal loans at minimal interest rates. Standard chartered personal loan uses the following eligibility criteria for issuing the loan:
1. Minimum CIBIL score: 750
2. Minimum income: Rs. 15000
3. Age: 23-58
4. Occupation: Salaried/Self employed
They issue the personal loans for amounts ranging from Rs. 1 lac to Rs. 30 lacs at an interest rate of 9.99% p.a, for a period of 12 to 60 months. The documents required are:
1. Proof of Identity.
2. Proof of Address.
3. Proof of Income.
The processing time for approval of your Standard Chartered Bank personal loan is just two days. In order to get the best rate of interest for your personal loan, you need to keep the following aspects in mind:
1. Maintain a stable credit score.
2. Check your eligibility.
3. Do not apply concurrently with several lenders.
4. Balance all credit card payments.
Although it is a smart decision to take up a personal loan to fulfill your dreams, it is equally necessary to understand the terms and conditions and your capability to repay that loan. You should not affect your future in a negative way just to make your present problem-free. You need to be a wise person and only then make the best possible decision to help your present as well as securing your future, in order to avoid falling into a trap.
Also Read:- Personal loan vs Credit Card Loan
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