A personal loan is a loan from banks of less eras, in a short time for contingency needs. This makes it easier for individuals to use money at a time of economic emergency. Remember to borrow according to your payment capacity because borrowing more than you can repay can trap you into the debt trap. The most important advantage of personal loans is that it is most effective for your casual needs. In addition, you can take personal loans for treatment, for marriage or other ceremonies, roaming, and needs, etc. However, the less you borrow, the easier you'll be able to pay the amount. So, borrow only in case of emergency and not because it is readily available.
Which bank should take a personal loan?
Banks offer personal loans to customers fiercely. Banks mostly claim that these loans are being given at very low rates. They are also offered to customers through email or SMS. But don't forget to roast the offer already. You can lose the chance of a better deal by accepting the bank's application. So take a personal loan only after doing good research. Ensure where a personal loan is available at the lowest rate of interest.
What documents are needed for Personal loan?
- For proof of identity: Passport/ Voter ID/ Aadhaar/ Driving license
- For proof of address: Aadhaar/ Voter ID / Driving License / Passport
- Last three months bank statement or last six months bank passbook
What is the role of CIBIL for Personal loan?
The personal loan depends on the credit credit credit of the applicant. So CIBIL Score is one of the most important factors when banks approve your loan application. The role of Cibil in getting it becomes very important. If your record in Cibil is not good, i.e., credit score is not good, it will be very difficult for you to take a personal loan.
What to do for low EMI?
Interest rates have an impact on your EMI. Therefore, in having an affordable EMI, it is necessary to select a bank offering a minimum interest rate. Compare interest rates by different banks before taking a loan.
How is the interest rate fixed according to the score?
The EMI of the loan will be fixed as per the score given by the Credit Information Bureau of India (CIBIL). Suppose you have applied for a loan in a bank and the bank's interest rate is 8.35 percent, if your score is above 760 points, you will get a loan at an interest rate of 8.35 percent. At 725 to 759 points, the loan will be 8.85 percent and at points below 724 at 9.35 percent interest rate.
How can you know your credit score?
You can easily know your credit score. On Cibil's website, you can easily find credit scores. It will have to go to www.cibil.com and fill up the online form. You will also have to pay Rs. 550. Once the authentication is processed, you can download Cibil scores and reports.
Do you have to pay any other fee other than the rate of interest?
In addition to the interest rate, customers also have to pay other fees and fees related to personal loans. These include processing fees, late payment fees, foreclosure fees, part pre-payment fees, etc. So to avoid any hassles, you already know everything about all these charges from your bank.
What to do to pay EMI on time?
To pay the EMI on time, you should save and keep the amount as an emergency fund. These funds can help you cope with the economic crisis. If something bad goes in your life, such as if your job is missed, or you get sick, these funds can come to your job. This will not affect your ability to repay your loan.
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