Apply for Personal Loan in India

Personal Loan: Overview

Personal loans are unsecured loans provided by the banks without taking any collateral security, though some PSU banks may insist on a guarantor. Personal loan can be taken for any personal requirement ranging from marriage to holidaying or maybe to buy a lifestyle product or medical emergencies. The end purpose is not important to the bank as long as it is not for speculative trading.

Personal loan is a simple hassle free process of acquiring personal finance with minimal documentation and within quick time. The bank will require the borrower's documents regarding the proof of identity, residence along with income proof / ITR of last 2 years to initiate the process for loan sanction.

After verifying the documents and checking the borrower's credit score with Credit Information Bureau (India) Limited commonly known as CIBIL, the bank may decide whether to approve or reject the personal loan.

The personal loan amount and rate of interest is dependent on three major factors. First are borrower's income and his ability to service the loan. Second is the company for which the borrower is working and third is the credit history of the borrower. The bank may reject the personal loan if the borrower has defaulted in his past dues on any credit card or loans.

Once the borrower is qualified for the personal loan it takes close to about three days or so to get the loan amount disburse. The personal loan repayment is in equated monthly installments and tenure can vary from 1- 5 years.

It is advisable for a borrower to get in touch with as many banks as possible and get them to make loan offers to him. Then he can then try to negotiate with them and select the most cost effective option for him. The borrower will also have to take into consideration the processing fee and prepayment charges while finalizing the lender

Always remember that personal loan should be taken in dire emergency as far as possible. Being classified as unsecured loans, these loans are usually more expensive in terms of interest rate compare to any other loan taken against collateral security like gold jewelry, high surrender value insurance policies, etc.

Personal Loan EMI Calculator

Looking for personal loan to buy your favorite laptop or enchanting LCD TV or want to change the furnishings of your house? But do not know how it will impact your monthly budget? How much amount you will need to pay as EMI? An equated monthly installment (EMI) is what you pay every month towards repayment of your loan.

With the ApnaPaisa personal loan EMI Calculator, you can make a truly informed decision on how much that loan is going to cost you each month. Conversely, you can also determine what budget to set for your purchase. For example, if you are willing to pay an EMI of only Rs. 5,000 each month and say your bank quotes an interest rate of 14.5% for a 5 year unsecured Personal Loan. This calculator will tell you that you can easily borrow Rs. 2,10,000.

So what are you waiting for? Visit the EMI Calculator page on our site, key in the loan amount, the tenure and the interest rate - and find out just how much EMI you will have to pay.