Personal loans are there to fulfil personal needs – not just any needs but financial needs which keep arising from time to time. The concept of personal loans in India was never given much importance before because of the rates of interest used to be so high that people could hardly afford to take them. As things have changed now and banks have lowered their interest rates to suit the public’s interest, more and more people make use of personal loans to fulfil all their financial requirements.
Personal loans – what are they used for?
Personal loans are used for different reasons. This depends entirely on the wants and needs of the person who is borrowing the money. Some people put it to some kind of productive use while others just use it to pay off previous dues or to celebrate lavish festivals. Aspiring business persons are usually the only ones who make use of personal loans for productive purposes. This basically means that they use if for a purposes which helps them to eventually earn it back along with something in return.
Even people who take personal loans to purchase consumer durable goods aren’t actually using the money for unproductive purposes. This is so because they invest in goods which bring them some degree of satisfaction. When it comes to utilizing the money for festivals and marriages, it comes under the category of unproductive use of funds. Besides these, there are many other purposes for which personal loans are used; all of which the bank is not really concerned about. What matters to the bank is whether the borrower is in a financial state to pay back the loan or not.
Personal loans – How can you apply for a personal loan?
Applying for a personal loan is quite easy. The best thing to do would be to first make sure of the loan schemes offered by your bank and also find out the terms and conditions which need to be adhered to in order to be eligible for the loan. This can be done in two ways: either personally or online. The personal approach of visiting a bank and finding out about the various deals available on personal loans is now in the background. Now, people prefer to do mostly everything online. Since banks have realised this too, they make things easier for the customers by providing details regarding their services through the internet.
Another way, in which you can look into the various options and deals currently available from a particular bank or financial institution, is by conveniently checking online for detailed information. Once you are sure of what you want you can apply for the personal loan directly to the bank. This will be much easier once you know the entire procedure and documents required (from the information you seek online).
Like most of the contingencies (the after effects of unemployment
safely allow it to be categorised into a contingency), one is rarely
prepared enough to face the inconveniences being forced upon by
unemployment. And within months of losing job, making ends meet becomes
tougher for the individual. The situation gets grimmer if the jobless
individual is left to fend for himself. The unemployment dole handled
out by the government is hardly sufficient to meet the routine needs. As
soon as the larger expenses crop up, the finances fall flat. There is
little option other than to surrender to the forces of poverty and
You certainly do not intend to allow the chain of events a free run in your life and finances. Personal loans for unemployed
will be a very important weapon in this venture. Personal loans for
unemployed identify well with the concerns of the jobless borrowers and
thus prove a more potent technique to fight the times of unemployment.
question that crops in most minds is why the unemployed individuals
need a specialised loan, and why they cannot realize their purpose
through a regular loan. The attitude of the loan providers is more to
blame for this. Since, the unemployed people lose a stable source of
income, they are not able to instil much faith in the loan providers
that they will safely repay the personal loan for unemployed. Loan
providers perceive a greater degree of risk in offering personal loans
for unemployed. This leaves loan providers with two options- either
reject the application of the unemployed altogether, or offer them
personal loans for unemployed with renewed terms and conditions.
refused personal loans because of unemployment leaves borrowers with no
choice except to look after other loan providers. It is not that
difficult to search for personal loan for unemployed now. With the loan
providers making a widespread use of technology, borrowers can find
listings by loan providers offering quotes on personal loans for
unemployed. With an increasing number of lenders in the UK borrowers do
have a chance to qualify for personal loans with some or other lender.
lenders who agree to offer financial assistance may generally offer
personal loans on terms that differ from the regular loans. The
principal difference may be noticed in the rate of interest charged.
Because of putting a greater exposure on the loan providers, expecting
an interest rate equivalent to the regular loans will be unreasonable.
Rate of interest is a function of the degree of risk involved in a loan.
Standard variable rate of interest charged on personal loans for
unemployed is generally higher.
This however, doesn’t give the loan provider a free
hand in charging interest. There have been many instances of unemployed
borrowers losing their homes or other possessions because of agreeing to
excessively high interest rates. The base rate to be charged on
personal loans for unemployed can be ascertained through a loan
calculator. A loan calculator lists loans of all kinds along with their
respective interest rates. A borrower can upon comparison know what the
lowest interest rate is, and also know whether the interest rate he is
being offered is in concurrence with the best available rates of
interest. The entries in the loan calculator may not have been updated
according to changes in the rate of interest and other terms. Thus,
though the loan calculator may not give an exact information, it may be
used for defining a benchmark.
Personal loans for unemployed are
generally secured on the borrowers’ home. The collateral helps salvage a
somewhat better deal for the borrowers. Willingness to offer ones home
as collateral also makes more and more lenders keen upon offering
personal loans to the unemployed.
The personal loan thus offered
is also termed as a home equity loan. A borrower has the option to
receive the money due on the home equity loan through two different
methods. He either receives the entire amount at one instance or opens a
home equity line of credit to assist him in emergencies. The second
option of home equity line of credit will be much more useful for people
who do not have an immediate use of the entire sum. Under the home
equity line of credit, interest is charged only on the amount withdrawn
and not the entire amount as in the home equity loan.
personal loans for unemployed may not cater to unemployment in its
entirety, but it can offer a potent short-term solution to the financial
shortage that unemployment is generally accompanied with.
An unsecured personal loan is a loan on which particular borrowers do not require a form of security such as a house or car that being used to secure the loans. Instead the borrower”s entire personal credit history is measured through a credit check which is further used to decide when the particular loan will be offered to an individual.
Personal loan rates in the country generally vary on diverse criteria which purely depend on the income level. In the country, there are n numbers of banks and each of the banks has different classifications that based on diverse interest rate.
There are numerous important factors which usually determine particular personal loan interest rate which includes income, your company status, credit and payment history, relationship with the bank you intend to take loan from, individual”s negotiating ability and many others. Generally most of the personal loans in India have both good and bad points which give extra benefits to the people with their standard interest rate.
Without searching, you cannot find best deals for you. To get beneficial and advances solutions, it is important to get best deals which are offered by various companies in the country. Each company has its own rules and regulations which offer unsecured personal loans.
All these policies have both pros and cons but to understand them better, you need to compare these loans with each other to get beneficial results in the end. ICICI Bank, HDFC Bank, Bajaj Finserv, ING Vysya, Standard Chartered Bank, Citibank, Andra Bank, Bank of Baroda, United Bank of India and many others are some famous and renowned banks which provide personal loans in India.
Unsecured loans are generally for lower amounts as compare to the secured loans. Lenders usually have rigid requirements for borrowers which are concerned with the unsecured loans. Lenders usually prefer higher credit scores which will further considered as verifying income and comparing the debt to income ratio of the borrower.
The best way to get beneficial deals is by doing comparison between several unsecured personal loans in the country. Policy Bazaar compares these personal loan rates by using criteria and creates list of the unsecured personal loans that may be best deals for your personal circumstances. There are numbers of banks which offer personal loans in India. To get loan from these banks, you can easily apply for these loans to get beneficial results in the end.
State Bank of India is the foremost and most trusted banks in India. SBI along with its combine branches has a distribution more than 16,000 branches, which is the largest in any network of banking. BNP Paribas, Euro Zones leading Bank and is the oldest foreign bank having an existence in India. BNP Paribas Assurance has a chief presence in Latin America, Europe and Asia and is among the top15 insurance company in Europe. The company has other joint venture in Asia in countries like Vietnam, Taiwan, Thailand and South Korea.
SBI Personal Loan is the best options for individuals who require the urgent money. SBI also provides the attractive rates and easy flexible repayment options. Below are the various features, eligibility criteria and documentation required for the loan approval.
Features: People can avail SBI Personal Loan for various different purposes or events in life such as domestic or foreign travel, medical emergencies, marriage, education, paying the bills, consolidates the debt, dream vacations, small business establishment and home renovation. The bank provides the minimum loan amount up to Rs. 24,000 in metro cities and Rs. 10,000 in semi urban or rural cities. The maximum amount is 12 times net monthly salary for pensioners and salaried person and the maximum loan amount is up to 10 Lacs.
There is no need to give any security or collateral to the person for availing Personal loan. The maximum repayment period is up to 4 years.
Eligibility: The salaried person who has two years experience from any reputed company is eligible for SBI Personal Loan. The self-employed individual with 2 years of experience is eligible for the personal loan.
Charges: The banks charge the processing fee from 2 to 3 percent of the loan amount. The banks also charge the prepayment charges up to 1% of the loan amount if the borrower repays the loan before 6 months of the loan period.
Documents Required: The documents required by the banks for salaried individual are Application form with recent two passport size photographs, latest salary slip, residence proof, ID proof and bank statement for last three months.
Self employed individual have to give the documents like the application form with 2 photographs, Income Tax Returns (ITR) for last two years, proof of Residence, identity proof and bank statement for last six months.
People can get the instant approval for SBI Personal Loan if they are eligible and provide all the required documentation to the bank.
Loan is taken by an individual to help him meet any financial need or during any emergency situation. If you need a personal Loan in Singapore, you should know that there are many money lending institutions in Singapore which cater to the needs of individuals and give them money at good rates and have good repayment schemes for the individuals. This flexible repayment schemes and the great service offered by many institutions make them immensely popular among the people of Singapore.
The money lenders give various kinds of loans to individuals. Personal loans, home loans, fast cash, service loans, foreigner loan are some of the broad categories of loans that is been offered to the customers in Singapore applying for a loan.
Personal loan in Singapore has one of the best rates that can be offered to an individual for taking a loan from a money lending institution. The services offered by the money lending institutions is of the top quality and people can rely on them. The personnel are trained and efficient helping people to apply for the correct kind of loan suiting their needs and requirements. They guide them and analyze their financial situation beforehand. This helps individuals to apply for the correct kind of loan. For applying for personal loans, one will have to fill an online application form of a money lending organization. After the investigation has been made about the individual, the loan is been sanctioned. When the loan has been sanctioned, individuals have to full up documents and papers for furthering the loan process and for helping the money lending organization to speed up the work.
Apart from the personal loan in Singapore, another loan which is becoming important in recent times is the foreigner loan. Getting these kinds of loans in Singapore requires certain documents which have to be presented at the office of the money lending institution for applying for the loan. An individual may be working in Singapore or may be a traveler and may suddenly require money. For taking the foreigner loan, one will have to show his passport, visa for the traveler and the employed individual will have to show his employment pass. The age limit for applying for this loan is twenty one years. After the documents are submitted, they are verified and then the loan is passed by the money lending institution.
For the foreigner loans, no processing fee is charged from the person applying for this loan. The loan can be given back to the organization in small and easy installments. The companies have customer service employees who help individuals by giving information and resolving their queries.
Therefore loans can be taken in Singapore at easy rates and the repayment procedure is simple so as to aid individuals in giving back the money easily and quickly.