A personal loan is a type of multi-purpose loan, and there is no requirement of collateral. It can be used to cover medical , wedding or educational expenses. It is an unsecured loan, so the interest rates are generally higher. Nowadays, the lenders provide so many plans that can help you to get a personal loan that will not be a financial burden.

Personal Loan

Here’s a list of things that you need to know about the personal loan:

• Eligibility Criteria For Personal Loan:

The eligibility criteria differ from lender to lender. Some of the standard eligibility criteria are the creditworthiness, age of the borrower, the income of the borrower and capability of reimbursing the personal loan.

• Loan Tenure:

The repayment time is generally shorter and ranges from 1 to 5 years.

• Personal Loan Calculator:

Make use of a personal loan calculator to check eligibility, interest rates, and the value of monthly instalments to be paid.

• Loan Amount:

The loan amount varies, and this is based on the lender and if you are a salaried individual or self-employed. Generally, the lenders limit your loan value such that the monthly instalments do not exceed 50% of your monthly income. 

Conclusion:

A personal loan can provide you with financial aid in times of emergency. You can quickly get the loan approved by maintaining a good credit score and meeting all the essential eligibility criteria. Just keep the points mentioned above in mind before applying for a personal loan.

Must Read: What is the Complete Disbursal Process of a Personal Loan?