Are you looking for a suitable loan to fulfill your significant expenses? A personal loan can solve your fund crunch! Per the RBI, Personal Loans comprise almost 30% of total lending in India as of March 2021. The simplicity of the loan and the ease of availing the facility have made it very popular among borrowers.
You can enjoy simplified personal loans with full online access to your loan amount at low-interest rates and minimum documentation. This article covers all you need to know before applying for a personal loan to cover your significant expenses.
What makes Personal Loans so attractive?
The unique and flexible features of Personal Loans make them very attractive. Let’s look at the significant features of a Personal Loan.
- No restriction on usage: This is the most attractive feature of a Personal Loan. There is no restriction on the usage of the funds received by you. You can use it at your convenience and for whichever expense you need. Hence, you can use this to sponsor all your significant expenses! You can cover your costs for marriage, children’s education, home renovations, medical fees, etc.
- Simple eligibility criteria: To get a personal loan from a bank, you should be employed, and your salary should be more than Rs 25,000. You need to submit your KYC documents (PAN and Aadhar Card), salary slips for the previous two months, employee ID, and three months’ bank statements of your salary account. It would help if you were between 21-55 years. Depending on your eligibility, you can get a Personal Loan of up to Rs 25 lakh,
- Collateral-free: The banks do not ask for collateral security against a Personal Loan. The purpose of this loan is to bridge your fund gap. Hence, the collateral-free nature is one of the most delicate features of this product.
personal loan EMI calculator to know your EMI amount. You can also prepay the loan to reduce your interest expenses.
If you want to meet recurring expenses and not use all the money simultaneously, Kotak Mahindra Bank allows you to withdraw multiple times from your loan account as and when required. You will be charged interest only on the amount removed from the loan account. So you don’t have to bear the interest on the total loan amount.
- Personal Loan interest rate: The interest rate the bank charges directly impacts your EMI. The higher the rate of interest, the higher your EMI is. The interest charged is always on a compounded basis. The interest is set on the outstanding monthly loan amount at a compounded Personal Loan interest rate. The bank gives you a repayment schedule along with the sanction letter. This contains the interest calculation made by the bank on your loan.
So, personal loans can help you cater to your need for significant expenses, whether one-time or recurring.
