Personal Loan

In life, we weave many dreams and work hard to making them come true, be it kids wedding expenses, dream vacations, or home renovation, make all your dreams come true with a personal loan in just a pinch.

 

What is personal loan?

Personal loan is an unsecured loan which you can get from banks to fulfil your personal needs. Basically it's a loan for any need and it's quite easy to have it without asked many questions from the bank. You can take a personal loan for buying your favorite gadget for yourself or family, for traveling around the country and abroad, buying expensive items for home use, children's education or any other work. Personal loan borrowers do not have to provide any guarantor or take collateral/pledge. It is because of this feature that it is so popular. Moreover, you also get the freedom to use the loan amount for any legal purpose.

Uses of personal loan

Personal loan is a multi purpose loan which you can use for any legal purpose, like:-

Wedding

You may need to come up with cash to pay for your special day. If you take a personal loan it can be an affordable solution to cover all of your wedding expenses.


Traveling & vacation

Who doesn't like to travel? For unplanned vacation you can apply for a personal loan, which can be disbursed to your account in a matter of hours! With less documentation you can enjoy a hassle free vacation.


Renovation of your house

You can use a personal loan for a home improvement project & modify your  kitchen or bathroom.


Purchase a vehicle & gadgets

Keeping pace with the pace at which technology is advancing is not easy. From entertainment units to home appliances & electronics are now integrated with 'smart' technology to make your daily work easier. Apply for a personal loan to meet such needs.


Emergency expenses

Many people do not have an emergency fund, so they are unwilling to respond when they suddenly need cash. In this case you can opt for personal loan. It will cost you less then credit card dept.


To Cover Medical Expenses

With a personal loan, you can get your treatment done without delay and pay your medical expenses with time. 


These loans are repaid in monthly installments over a period of few months or over a few years. This may take longer, it is depending on your circumstances and how diligent you are at making the payments.

Aside from gambling and illegal activities, here are some other things you might not normally use a personal loan to pay off. Like:-


Paying for College tuition

Under the Higher Education Opportunity Act of 2008, lenders providing private education loans must make special disclosures, provide borrowers with a 30-day rumination period within three days of disbursement of funds and give themselves the option to cancel . Schools cannot be affiliated. These are just some of the rules that loans for educational use must follow.

Not all the lenders offer personal loans that meet all of these requirements. Since they do not adhere to these strict rules, many lenders actually prohibit the use of their personal loans for tuition-related expenses.


Down payment of the home
If you want to take out a personal loan to use as a down payment, you will be on the hook for two loans – the mortgage payment and the repayment of the personal loan. From a lender's perspective, this can increase a borrower's risk of defaulting on their payments, which is why traditional lenders and FHA lenders don't allow you to use a personal loan for a down payment.


Some expenses of business
If a lender has no restrictions on using their loan amount for your small business, then you will be able to use the loan for any of your business needs. However, some lenders do not allow you to use your personal loan amount for any type of business expense.


A personal loan can be a useful tool for financing expensive projects, repairs and even big surprising expenses, yet there are some costs that they cannot be used to cover .So, personal loan can be quite easy to help us when we are required for money and this is a easy way to fulfill requirements. While some lenders may be more lenient on the use of the loan, you should always double-check the terms to make sure the terms are clear to you.

Features Of Personal Loan

Interest rates

Interest rates of unsecured personal loan is comparatively higher than other loan but the increasing competition among the competitors, give benefit to you to choose the bank with less interest rates.


Repayment

Repaying the personal loan is easy because of the convenient options available for you such as post dated cheques, online payment of EMIs etc.


Minimal paper work

Getting the best personal loan is easier than other loans because bank understand the urgency needs of their customers and then they give approval quickly. Most of the bank process the loan request with in 48 hours.


Loan tenure

last but not the least, you get the enough time to repay your loan with equal installments and the tenure can be between 1-5 years. So you can take time according to you and repay the loan comfortably.


Loan amount limit

Whether you are salaried of self employed, you can get the loan as low as INR 20 thousand and as high as INR 20 lakhs which you can use for any legal purpose.


 

Process For Applying A Personal Loan

Applying for a personal loan online has become very easy these days. If you want to save your time then you can apply for a personal loan online from GRD India Financial Services Private Limited through grdindia.in or any of the official sites of bank in a matter of minutes.

The mode of online application is Following below:-

  • You can directly apply for a personal loan on our website www.grdindia.in
  • You will be shown offers from multiple banks/lending institutions based on your loan approval probability.
  • Now compare various options on parameters like interest rates, processing charges, prepayment charges and ratings and choose the best loan offer for you.
  • Fill in some other basic information asked in the online form, so that the personal loan application can be sent to the bank/ loan institution chosen by you.
  • Upload documents or set date and time to deliver documents.
  • After this for verification, you will get a call from the bank by the agent.
  • Discuss you all doubts from agent and there will be some basic formalities, complete them as bank's directions.
  • After the verification is successful, the loan will be approved and the loan amount will be transferred to your account.
Eligibility Criteria For Personal Loan

There are some following factors that are considered by the some lenders while looking at your loan application. If you meet these eligibility criteria, you can consider yourself eligible for a personal loan.

 

Criterion Salaried Self Employed
Age 21 to 60 Y 22 to 55 Y
Monthly Income 15,000 25,000
CIBIL Score 750+ 750+
Min loan amount 50,000 50,000
Max loan amount Rs.25 Lakh Rs.50 Lakh

EMI Calculator & Schedule

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Loan EMI

24,959

Total Interest Payable

34,90,279

Total Payment
(Principal + Interest)

59,90,279

Loan Eligibility Calculator
%
Comparison Chart
LenderInterest RateProcessing FeeEMI / LakhLoan Tenure
8.80 %1.8% + TaxesRs 2,06612 to 60 Months
9.20 %2% (Min Rs 250)Rs 2,08612 to 60 Months
10.00 %NILRs 18536 to 72 Months
10.25 %Up to 2.5% (Min Rs 999)Rs 2,17412-60 months
10.25 %Up to 2.25%Rs 214912 to 60 Months
10.35 %1.00% (Min Rs 1,000)Rs 3,2436 to 36 Months
10.49 %Up to 2.00%Rs 2,14912 to 60 Months
10.49 %Up to 2.5%Rs 1,87712 to 72 Months
10.49 %0.75% to 1.75%Rs 2,14912 to 60 Months
10.75 %Rs 4,999Rs 2,16212 to 72 Months
10.75 %Up to 2.5%Rs 2,14912 to 60 Months
10.90 %NARs 3,26912 to 36 Months
10.99 %Starting Rs 999 (Min)Rs 2,58412 to 48 Months
11.25 %1.5% (Min Rs 500)Rs 3,17512 to 60 Months
11.49 %0.40%Rs 3,16612 to 36 Months
11.50 %up to 3.00%Rs 2,12512 to 60 Months
11.50 %1.00%Rs 2,19912 to 60 Months
12.00 %1.00%Rs 2,22412 to 60 Months
12.80 %0.50% (Min Rs 500)Rs 2,13512 to 60 Months
12.99 %1.50 to 3.00%Rs 2,27512 to 60 Months
13.30 %0.50%Rs 2,69812 to 48 Months

Related Frequently Asked Questions

Simply put, it is an unsecured loan taken by individuals from a bank or a non-banking financial company (NBFC) to meet their personal needs.

It is provided on the basis of key criteria such as income level, credit and employment history, repayment capacity, etc.

Unlike a home or a car loan, a personal loan is not secured against any asset.

As it is unsecured and the borrower does not put up collateral like gold or property to avail it, the lender, in case of a default, cannot auction anything you own.

The interest rates on personal loans are higher than those on home, car or gold loans because of the greater perceived risk when sanctioning them.

However, like any other loan, defaulting on a personal loan is not good as it would reflect in your credit report and cause problems when you apply for credit cards or other loans in future.

Generally you can use a personal loan for almost anything, it is including a wedding, a vacation, a medical bill, an emergency circumstance and more. However, there are also some expenses a personal loan usually can't be used to cover.

Although it varies from bank to bank, the general criteria include your age, occupation, income, capacity to repay the loan and place of residence.
 

To avail of a personal loan, you must have a regular income source, whether you are a salaried individual, self-employed business person or a professional.

An individual's eligibility is also affected by the company he is employed with, his credit history, etc.

It can be 1 to 5 years or 12 to 60 months.

Shorter or longer tenures may be allowed on a case by case basis, but it is rare.

Typically, it gets disbursed within 7 working days of the loan application to the lender.

Once approved, you may either receive an account payee cheque/draft equal to the loan amount or get the money deposited automatically into your savings account electronically.

You may have more than one personal loan with some lenders or you may have multiple personal loans with different lenders. You are generally more likely to be prevented from obtaining multiple loans by the lender than by the law. Lenders can limit the number of loans or the total amount.

You cannot use a personal loan as a down payment on your next auto loan If you're not sure how to make the down payment, there are other options to consider.

So, if you want to apply for personal loan you can apply it without any fear with GRD India financial services Pvt. Ltd. as per your needs and money requirement.

As long as you consistently repay the loan on time, a personal loan can improve your credit score. It's recommended to follow 20/10 Rule

20: Never borrow more than 20% of annual net income.

10: Monthly payment should be less than 10% of monthly net income.

You take out a loan when you need credit. for a personal loan Once you will submit your loan application to the lender, the lender will verify and approves it. Thereafter, the loan amount will be disbursed to your bank account. Once you receive the full amount of loan, you need to repay it to the lender through EMIs for the loan repayment tenure.

In India, there are some lenders who offer loan up to ₹50 lakh. The maximum loan amount depends on the monthly income of the applicants.

You can use the Personal Loan Eligibility Calculator to know how much you are eligible to borrow with a monthly salary of ₹25,000. With a monthly salary of ₹ 25,000, you are likely to be eligible for the loan. However, the lender will also check whether you have any other outstanding loans, your credit score, repayment capacity, etc. before deciding how much you can borrow.

There are several ways in which you can repay your loan. Examples:- 

-Through Electronic Funds Transfer (EFT)

-By cheque

-By paying physically at a branch of lender

-Through Standing Instruction for automatic deduction from your account

If you apply for a loan for which you are not eligible, the bank may reject your personal loan application. If you fail to submit the required documents then it can also lead to rejection of your application.

RELATED BLOGS (9)

News Update on Personal Loan

Special HDFC Bank Offer for Government Employees

Admin 2022-07-30 18:53:25

HDFC Bank has launched a special Freedom Dhamaka Offer for personal loans for government employees. The personal loan rates start at 10.25% and are valid till 15th August 2021.

Google Updates Policy for Personal loan Apps

Admin 2022-07-30 18:53:37

Google has asked all the personal loan lending apps in India to provide a declaration form stating that the application serves as a middle-man for registered non-banking financial companies (NBFCs) or banks.

The apps must comply with these norms and provide relevant documentation such as a license till September 15 if they want to stay listed on the app store.

RBI Revises Personal Loan Limit to Rs. 5 Crore for Board Directors

Admin 2022-07-30 20:11:42

RBI has revised the limit of the personal loan that can be granted to board directors and their families.

The new limit is set at ?5 crore as against the earlier threshold at Rs 25 lakh.

Amalgamation of Bank of Baroda, erstwhile Vijaya Bank and erstwhile Dena Bank

Admin 2022-07-30 20:11:56

Bank of Baroda, on its website, stated that the IFSC codes of the erstwhile Vijaya Bank and Dena Bank were discontinued on March 1, 2021.

Customers have been asked to apply for cheque books with the new MICR code at the earliest.

4 smart ways on how to maintain your CIBIL score effectively

Admin 2022-09-01 12:35:27

The key to being credit-ready is having an excellent CIBIL score and a commendable financial profile. Here, the key is to have the right financial habits. When it comes to your CIBIL score, it isn’t enough to simply build a high score, as it takes effort to maintain it as well. A good score helps your eligibility for new credit, and can fetch you favorable repayment terms that do not strain your finances.

But in order to maintain a good credit score, you need to understand the credit factors that influence your score. These factors include your credit utilization, credit mix, and repayment history. Besides understanding these factors, you should also know the best habits to practice to sustain a high CIBIL score. To get you started, here are 4 simple and smart ways to maintain your CIBIL score. 

Make informed credit decisions

Review your credit report regularly

Use your credit limits strategically

Pay EMIs diligently and without delays

 
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