All Your Questions About Personal Loans Answered
A Personal Loan is the easiest type of loan. It is easy to get, requires no security and is versatile. You can use a Personal Loan to meet any personal or business-related expenses. Banks and Non-Banking Financial Companies offer attractive Personal Loans at competitive interest rates.
The common features of a Personal Loan are same as that of other types of loans. There is a rate of interest, which is payable on the amount of loan you avail. The repayment tenure indicates the tenure within which you are required to pay the loan. The factors would include options for paying off the loan and the related fees and charges. Besides these common features, many borrowers have certain queries when they seek a Personal Loan. It is important to know all aspects of the loan before you apply for one.
Here are the answers to some Personal Loan FAQs–
Is A Collateral Security Necessary for The Loan?
A Personal Loan is an unsecured loan. Thus, no collateral security is required to be pledged to avail the loan. The loan is granted on the basis of your repayment capacity.
How Soon Can a Personal Loan be Sanctioned?
Because a Personal Loan does not require any security, it is sanctioned easily and quickly. The actual turnaround time of loan sanction varies from lender to lender. However, a Personal Loan is, usually, sanctioned immediately after a successful loan application. For a successful loan application, the loan application form has to be duly filled and submitted along with the relevant documents. If the documents are duly submitted, the loan could be sanctioned within minutes.
What Fees and Charges are Applicable for a Personal Loan?
A processing fee is an upfront fee that is payable when you make an application for Personal Loan. This fee depends on the lender. It is charged either as a percentage of the loan amount availed or as a flat fee. With this processing fee, a secure fee is also charged for online applications of Personal Loans. Once the secure fee is paid, lenders may sanction the loan instantly. Without the secure fee, the lenders tend to delay the loan.
Is An Additional Loan Available If There is a Shortfall of Funds?
If you run out on loan funds, you can avail additional loan through the facility of top-up loans. Top-up loans are additional loans granted on any existing loan. However, you can avail a top-up loan only if the repayment history of your existing loan is free from defaults. Also, you will have to wait for a sufficient tenure before you become eligible for a top-up loan. Moreover, top-up loans do not require additional verification or documentation. You are an existing customer whose documents are already available with the lender. Thus, these loans may also be issued instantly.
Can I Pre-Pay My Personal Loan?
Prepayment of your loan means paying an amount in excess of the stipulated EMI when you have surplus cash. Prepayment reduces your outstanding loan liability, thus reducing the interest rate. This, in turn, reduces your subsequent EMIs. Personal Loans allow prepayment facility. You can choose to pre-pay your outstanding loan partially or fully. Full prepayment means that you pay off the outstanding balance of your loan before the stipulated tenure and is called foreclosure. Both partial and full prepayment might be subject to certain fees and charges.
Can I Avail a Personal Loan Even With a Poor Credit Score?
Your credit score is the measure of your creditworthiness and your eligibility to avail a loan depends on it. A credit score above 750 is considered good and loans are easily available. If you have a poor credit score, you can still avail a Personal Loan. However, the loan might have a higher rate of interest and the loan quantum might also be limited.
Though a Personal Loan is the easiest loan, you might still have some unanswered questions. Get your uncommon Personal Loan FAQs answered before you apply for the loan. Thus, you do not face any surprises later. It is advisable to understand the features, benefits and Personal Loan interest rates and then apply for the loan. Bajaj Finserv also offers a Personal Loan for all your requirements. You can check the Bajaj Finserv PL online application page here.