The banks have introduced personal loan some
time back only,
but it gain demand among loan seekers
like anything. The person can take this loan for resolving several of
their personal needs.
The person can avail this loan for any purpose, such as for marriage of their sister
or daughter, for medical emergency, for higher education of their children or
them self, for purchase of
consumer durable goods, for purchase of a car, for initiating new business, for
house renovation, for travelling expenses, for investment
purpose, etc. The person can avail this loan easily, as the person can take this loan from any of the bank or financial
institution.
The banks provide this loan in two forms, i.e. secured loan or unsecured loan. Secured personal loan means the customer has to provide an asset or property as collateral for availing the loan amount. The lender provides this loan at low interest rate with high loan amount and that too with high tenure. The person has to provide the collateral, if the customer avails the loan amount above of Rs.15lacs. Even the poor credit scorer can also avail the secured personal loan. This is because; the banks or financial institutions can seize the customer property, in case the customer defaults in repayment of the loan. On the other hand, an unsecured loan means the customer does not have to provide an asset or property for availing the personal finance. The banks provide this loan high interest rate, and shorter tenure. This is so; the risk of lending is high in this case. The bank normally provides at 14 to 25% for the term of 1 to 5 years and amount up to Rs.15lacs.
The banks provide the unsecured loan only on customers profile and creditability. If the customer has an excellent creditability and strong profile, then banks happily provide the unsecured loan to the customer that too at low interest rate. The banks reject the application, if the customer has poor credit score, as unsecured loan is a risky asset for the bank. The bank checks the customer profile and creditability through customers documents; i.e. submitted with the application form. The bank verifies these documents and sanctions the loan only, if they are satisfied with the customer documents.
The person can easily avail the personal loan that too hassle free, as it requires minimal documents for processing, due to which, loan approval is also quick.
The banks provide this loan in two forms, i.e. secured loan or unsecured loan. Secured personal loan means the customer has to provide an asset or property as collateral for availing the loan amount. The lender provides this loan at low interest rate with high loan amount and that too with high tenure. The person has to provide the collateral, if the customer avails the loan amount above of Rs.15lacs. Even the poor credit scorer can also avail the secured personal loan. This is because; the banks or financial institutions can seize the customer property, in case the customer defaults in repayment of the loan. On the other hand, an unsecured loan means the customer does not have to provide an asset or property for availing the personal finance. The banks provide this loan high interest rate, and shorter tenure. This is so; the risk of lending is high in this case. The bank normally provides at 14 to 25% for the term of 1 to 5 years and amount up to Rs.15lacs.
The banks provide the unsecured loan only on customers profile and creditability. If the customer has an excellent creditability and strong profile, then banks happily provide the unsecured loan to the customer that too at low interest rate. The banks reject the application, if the customer has poor credit score, as unsecured loan is a risky asset for the bank. The bank checks the customer profile and creditability through customers documents; i.e. submitted with the application form. The bank verifies these documents and sanctions the loan only, if they are satisfied with the customer documents.
The person can easily avail the personal loan that too hassle free, as it requires minimal documents for processing, due to which, loan approval is also quick.
