Big financial organizations of the world offer budgetary solutions and options. They are the banks and Non-Banking Financial Companies (NBFCs) which provide loans in addition to other million financial services. The loans by these so-called authorized financial lenders are typically classified as secured and unsecured. Secured loans require collateral for the loan approval, whereas an unsecured loan doesn’t need any collateral. And the infamous personal loan is unsecured. Even without an asset to pledge, banks and financial institutes provide loan amounts as much as an unsecured loan’s principal amount. But, they do require other documents that have other eligibility criteria that need to be met by an applicant in order to avail of a personal loan. An applicant age in the range of 18 years and 70 years with valid proof of id, address proof, income proof, and bank statement can avail of this loan easily. The loan available online or offline conveniently in a few hours without any hassle.
Despite its many advantages and beneficial features, a personal loan is still a loan that needs to be paid off. The loan after the verification process by the banks and financial institutes is sanctioned for a certain period known as tenure. By the end of which, the principal amount must be paid with interest and without any monthly payment default. Choosing to pay off the loan before the initially decided tenure is known as prepayment. Banks and NBFCs charge a percentage of the loan amount as a prepayment fee. The fee varies from one bank to another, and prepaying the loan can be done during the tenure.
Prepayment features and benefits
A personal loan requires few documents and has other eligibility that an applicant needs to meet in order to avail of the loan. A CIBIL score is an integral part of the approval process. The score is a numerical summary of a report by a company named CIBIL that contains personal information, banking information, employment information, and the past credits( loans or debts procured previously from banks and NBFCs) of all the banking customers. The score is a three-digit number ( varying from 300 to 900) and indicates the applicant’s repayment capability. Though it is essential to take out a Personal Loan, banks and NBFCs still offer it to customers with low scores. And one way of improvising the score tremendously is by prepaying your personal loan. Borrowers with a high credit score can increase it even further by prepaying the loan. By prepaying a loan, the borrower can avoid monthly installments for the rest of the tenure. For example, if your loan tenure is for 48 months and you prepay the loan on the 36th month, then you can avoid 12 Equated Monthly Instalments. Still, usually, banks and financial institutes charge you a maximum of up to 6% of the outstanding loan amount for not having to pay for the 12-month interest, but it is NIL if the loan closing is on the final six months of the tenure. Also, if the borrower has multiple loans, then prepaying reduces one loan with one less monthly interest and one less principal amount. Prepayment, like interest payment, can be done online in a few minutes conveniently.
Conclusion
Innumerable banks and financial institutes are providing personal loans with various features and offers. And SBI remains in its place as the finest lender year after year. SBI personal loan has many advantageous features and deals that benefit millions of customers day by day. Like most other lenders, SBI also chooses online or offline mode for the application. By searching for SBI Personal Loan Apply Online, you can finish the application process from any corner of the world with no trouble. The features of a personal loan are available on the same page of the website, and it gives the entire details of SBI’s personal loan.
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