The very first thing that one should know about personal loans is its meaning, what exactly is a personal loan? Well, a Personal loan is basically an unsecured loan which is specifically given to meet the loan seeker’s personal financial needs. Repayment is usually through fixed amount As in there is no restriction put on the loan seeker, so as to use the funds for a specific purpose only unlike other kinds of loans such as home loans or automobile loans etc., where such a loan is granted only for buying those specific things only. Like for e.g. if a person seeks a Home loan, then such a person can use the amount granted only to buy his first house, and such an amount cannot be used for any other personal purposes, but in case of personal loan the loan seeker could use the amount granted as personal loan for achieving or fulfilling any purpose be it buying a house or a car or even for buying groceries or paying bills or debt consolidation. A personal loan is basically a loan sought by the borrower, with a mere promise to repay and such an amount could be used for fulfilling any personal need. It’s just that the interest rates for personal loans are comparatively higher than other kinds of loans.
The minimum criteria to be met for attaining personal loans are as follows:
- The list of individuals who can apply for personal loans are as follows:-
- Any salaried employee.
- Doctors who are salaried
- Any employee of a company both private and public and government sector employees
All of the above can seek for a personal loan provided that he/she should be at least in between 25 years of age to 60 years at the loan maturity and should have a minimum of the monthly income of Rs.35000 (the age and the salary requirement varies from lender to lender).
- The credit points of the borrower matter the most, like if he has a clean financial track record and has never delayed the repayment of past loans.
- The statement of account of the borrower shall be thoroughly analyzed i.e. the lender would see the income and debt ratio, it would be easy to ascertain whether he would be able to repay the sum with the rate of interest or not by just having a look at the statement of account of the borrower. The income and debt statement is the most significant factor that influences a lender to the specific amount, time and rate of interest, he is willing to give.
All of the above are the eligibility criteria for the personal loan.