Prerequisites for a personal loan
When applying for a personal loan, the one important prerequisite that every lender considers is credit score. You can only get a personal loan with lower interest rates if you have an exceptional credit rating. Therefore, if your credit score is bad, you may not be approved for a personal loan and therefore the interest rate will almost surely be higher than that offered to customers with a credit score above 750. Apart from a decent credit score, remember that the lender will determine the personal loan interest rate and the total loan amount based on various criteria such as your age, type of person, source of income. , the amount of the loan required, the type of profession, etc. Documentation also plays an important role when it comes to applying for a personal loan. Given the nature of the quick loan disbursement, you will need basic documents such as proof of identity (scanned copy of passport, voter ID card, driver’s license, Aadhaar, PAN), proof address (scanned copy of passport, voter ID card, driver’s license, Aadhaar), Bank statement for the last 3 months and Booklet for the last 6 months, last salary certificate and form 16, to apply for a personal loan instantly.
Interest rate on personal loans
Recently, a handful of public sector banks, such as the State Bank of India, Union Bank of India, and Canara Bank, have launched COVID-19 personal loans at 8.5% interest rates that do not are only used to fund COVID treatment and not immediately. need for liquidity. However, if you are looking for a personal loan, here are the top ten deals currently offered by some of the biggest banks in the country. The interest rates in the table are the same as advertised by the respective bank and may change depending on the terms and conditions of the lenders and the eligibility criteria.
| Banks | ROI pa in% |
|---|---|
| Union Bank of India | 8.90 |
| Central Bank of India | 8.90 |
| National Bank of Punjab | 8.95 |
| Indian Bank | 9.05 |
| Bank of Punjab and Sindh | 9.50 |
| IDBI Bank | 9.50 |
| Bank of Maharashtra | 9.55 |
| National Bank of India | 9.60 |
| UCO Bank | 10:30 |
| Baroda Bank | 10.50 |
| Source: Bank websites |
Why take out a personal loan in an emergency?
Personal loans are types of unsecured loans that are commonly used to meet urgent financial needs. Its emergency loan nature allows you to use your loan amount for various topics including weddings, home renovations, vacations, etc. Since this is an unsecured loan, the most attractive factor about this type of loan is that you will not have to put any assets as collateral for your loan. With your credit score and the loan amount required, if you meet the lender’s eligibility criteria, you can simply get a low interest personal loan. Personal loans are available with a quick disbursement process, which makes them more exceptional or useful for meeting emergency needs. No matter where you are, you can apply for a personal loan online from the comfort of your home or workplace, anytime, anywhere.
