Earlier the people use to postpone their desires and wishes due to the shortage of money and wait till the time they accumulate the required amount. Till they use to arrange the funds, they lost the interest in the thing they desired earlier. This is because the pleasure derived by instant gratification cannot be received by delaying things. Also, the right things, done at right time reap good results. Therefore in today’s time, people do not leave things on time and spontaneously grab the opportunity by arranging financial credit. There are various types of loan products available in the market. But the loan that is sanctioned in the shortest time possible is a personal loan. And because of net banking, it has become easier to drop a personal loan application. But while submitting the personal loan application form the applicant must fill the necessary details.
Personal Loan Application Form:
To avail the loan facility one has to fill in the application form. The application form is available at all the bank branches. The candidates can apply for the loan online as well.
need to fill in the following details-
- Personal Details along with the photograph
- Details of Co-obligant/ Guarantor along with recent photograph
- Profession Details
- Income Details
- Details of Assets and Liabilities
- Purpose of taking the loan
- Repayment Details
Also, the candidate is supposed to submit the requisite documents. The documents required are:
Identity Proof – PAN Card/ Passport/ Election Card/ Photo Identity issued by Government, Defence Services, Public Sector undertaking/ Driving Licence/ Photo Credit Card/ Employee’s ID Card, Letter/card issued by UIDAI containing the details of name, photograph, address and Aadhaar number
Income Proof – Bank Statement for last 6 months, post dated cheques and electronic clearing mandates, legal documents as stipulated by the finance company, collateral security as advised by the finance company, any other document as advised by the finance company
Residence Proof – Bank Account Statement/ Latest Electricity Bill/ Latest Telephone Bill/ Latest Credit Card Bill/ Employer’s letter certifying current mailing address/Passport (valid)
Signature Verification– Valid Passport /Pan Card/ Processing Fee Cheque/ Banker’s Verification Letter
Factors Affecting Personal Loan Eligibility:
Once the application is submitted, the candidate’s profile is evaluated thoroughly. There are various parameters based on which the eligibility of the candidate is judged. The major factors affecting the eligibility are as follows:
Monthly Income – The most important criterion that helps in setting the disbursal amount is the income of the candidate. The person earning a handsome salary or high revenues is likely to get higher loan amount.
Age – When it comes to applying for a loan, the age of the applicant also matters. The age limit varies from lender to lender but in general, ranges from 21- 60 years.
Monthly Expenses – As the lender assumes that the borrower will be repaying the loan from the monthly income excluding expenses, so the applicant’s savings become a concern while calculating the eligibility.
Any Other Loan – The lenders count the applicant’s obligation to repay any other loan while deciding the disbursal amount. If the applicant has the capacity to repay both the loan simultaneously the new loan is sanctioned.
Credit History – The healthy credit history of the applicant builds up the CIBIL score which makes it convenient for the applicant to avail a loan.
Job Stability – The applicant should have a stable job and have the experience of working with the same company for at least an year. The self-employed applicant too must have a regular source of income.
Personal Loan Eligibility Calculator:
The lender checks your repayment capacity by using the personal loan eligibility calculator based on which the disbursal amount is decided. The following inputs are required to compute the eligibility value:
- Personal loan interest rates
- Per lakh EMI
Now, how is the amount decided? The formula used to compute the value is:
Personal Loan Eligibility Amount = ₹ 1,00,000 x Savings/Per Lakh EMI
For the better understanding, let’s solve it using an example –
Illustration: The monthly income of an employee working in a reputed company is ₹ 80,000. He wants a personal loan for some reason. After meeting all his expenses he is able to save 50% of his income which is ₹ 40,000. He applied for the personal loan in a bank. The bank after considering his income calculated the eligibility amount in a manner specified below:
Per Lakh EMI for –
Tenure – 4 years
Interest Rate – 14.50% p.a.
EMI Amount = ₹ 2,758
So, the eligibility amount = 1,00,000 x Savings/EMI
= 1,00,000 x 40,000/2,758
= ₹ 14,50,327
Therefore, the candidate having a monthly income of ₹ 80,000 can avail a loan of up to ₹ 14.50 lacs.
Now with the availability of these unsecured quick loans, there is no need to keep your longings pending. Just file the application and access your dream at the right time.
State Bank of India personal loan rates start from 11.90% p.a. which is the largest bank in India providing multiple consumer-friendly products and personal loans are one of them. Be it your wedding or your travel plan, you can do it all with this loan scheme offered by State Bank of India. So, if you are a salaried or a self-employed individual who wants to fulfill his/her pending desires but have been looking for funds, here is the dream come true offer. The bank offers personal loans under the following schemes at low-interest rates and high loan amount facility:
- SBI Saral Personal Loan
- Xpress Credit Loan
- SBI Pension Loan
- Festive Loan
- Jai Jawan Pension Loan
As you can see, different schemes are dedicated to a different section of the customer for different purposes. So, from any personal need like traveling or medical bill clearance or education, all your needs can be fulfilled with this unsecured loan scheme of SBI.
SBI offers one of the personal loan interest rates on with the starting rate of 11.90% (floating) p.a. Just like any other bank, this bank also has certain eligibility criteria on the basis which it offers this type of loan. So, here are the details of all the schemes.
SBI Xpress Credit loan: This scheme is an ideal loan for the people who want instant money. If you are salaried or a self-employed professional, you can get this loan between the rate of 11.90% to 14.90% (floating) p.a. Up to the loan amount of ₹15 lakhs.
To get this loan, you must cover the below eligibility criteria:
- The applicant must be an employee of central and state government employee, Quasi-Government, Central PSUs, Profit making State PSUs, Educational Institutions of National Repute and selected corporates
- The minimum monthly income of the applicant should be ₹7,500/-
- The EMI/NMI ratio should not exceed 50
Pension Loan: This scheme is dedicated to the Pensioners and Family Pensioners (including Defence Personnel) and the interest rate offered under this scheme is 12.45% p.a. (floating) and up to the loan amount of ₹14 lakhs. To apply, you must cover the below criteria set by the bank:
- The maximum age of the applicant should be 76 years
- The person must be drawing a pension from the central or state governments and have his/her pension account with SBI
- If the family pensioner is the spouse of a pensioner who is authorized to receive the pension then they too must not be over 76 years of age.
Saral Personal Loan: This scheme requires the below criteria:
- Self-employed engineer
- Minimum work experience of 2 years for an MBA graduate
- Available for Chartered Accountants and Architect
Festive Loan: SBI is one of those banks that brings festive offers on SBI personal loan that are affordable and people-friendly as well. So, if you want money for the same purpose, you have to match the following criteria:
- Government employees or those working for PSUs or even private or public institutions/establishments with a minimum work experience of 2 years.
- Minimum Net Monthly Income of ₹3000/-
- The self-employed applicants must have the work experience of 3 years.
- Individuals with a regular source of income like pension or interest from TDR or NSC or Govt Securities can apply.
Other than the above-mentioned criterion, the general eligibility to apply for PL at SBI are as follows:
For salaried individuals:
- The minimum age of the applicant should be 21 years
- The maximum age of the applicant should be 58 years
- Minimum Net Monthly Income should be ₹5,000/-
- Total work experience should be at least 2 years
- Years in current residence should be at least 1 year
- The minimum age of the applicant should be 21 years
- The maximum age of the applicant should be 65 years
- Minimum Net Monthly Income should be ₹7,000/-
- Total work experience should be 2 years
Thus, on the basis of the above rates and eligibility, you can choose the scheme that suits your purpose and enjoy the benefits of low-interest rates and flexible tenure. So, what else do you want? Get started and apply now!
Are you in need of cash? Are you not able to go for a holiday? Want to buy an expensive accessory for your home? Need money for the marriage expenses? Lack of fund is holding you back to fulfill your whims and desires. The answer to all the worries is Axis Bank Personal Loan, which is designed to give you funds for your personal needs. You can use the amount for all kind of needs and emergencies. The axis bank provides the minimum loan amount of ₹50,000 and the maximum amount of ₹ 1,50,000. The repayment tenure ranges from 12 to 60 months.
The bank being one the most trusted private sector bank with its network spread in many cities of India. It is the third largest private bank of India. It provides the Personal Loans on the basis of cities that has been categorized in tier 1, 2, and 3. On the basis of your location they offer you the interest rate. It gives the best rate of interest to its customer starting from 15.50% onwards. You can also transfer your existing high- interest loan from another bank to Axis Bank.
Age- The minimum age required at the time of application is 21 years and the maximum age at the time of loan maturity should be 60 years.
Nature of job– You should be a salaried individual. The salaried doctors, an employee working in Public and private limited companies, central government sector employees, state government employees, public sector undertaking employees can avail the personal loan.
Minimum monthly income- The minimum monthly income is required by the bank to see your earning and how much you can pay as EMI. It also determines the amount that can be sanctioned to you. Your minimum net salary should be ₹ 15,000 per month.
Credit Score- It is important for you to have a good credit score in order to avail the personal loan from the bank. It determines the credit history of the borrower and show if the borrower is trustworthy or not.
Once you meet the eligibility criteria, the next step is to be ready with all the documents required for the sanctioning of the personal loan. The documents required to avail the amount is mentioned below-
- Signed application with recent passport size photographs.
- Age Proof- PAN Card/ Aadhar Card/ Passport
- ID Proof- Pan Card/ Passport/ Aadhar Card/ Driving licence.
- Residence Proof- Utility bills/ allotment letters.
- Bank Statement- Last 3 months bank statement/ last 6 months bank passbook.
- Income Proof- Latest salary slip/ ITR/ Form-16.
- Signature verification proof.
Post- sanction/ pre- disbursal documents are-
Once the above documents are provided, few other formalities needs to be completed so that the process of filing for the personal loan can be completed. For the post- sanction and pre- disbursal the documents required are-
- Duly signed Loan Agreement
- Standing Instruction Form/ ECS form.
- Processing fee cheque.
Interest Rate of Axis Bank Personal Loan-
The charges that are levied on the borrower by the Axis Bank Personal Loan at the time of lending the amount is mentioned below-
Rate of interest- 15.50% to 24%
Processing fee- 1.50% to 2% + applicable service tax.
Prepayment Charges- Nil
Cheque Bounce Charges- ₹ 500 per cheque bounce + applicable service tax.
The EMI Calculator helps you to determine the monthly installment that you as a borrower are going to pay to the Axis bank. You can visit the site of the bank to calculate your EMI’s. It helps you to make a decision for yourself and taking or rejecting a personal loan becomes a relatively easy decision for you.
Features and Benefits-
The Axis bank has several features and benefits that a customer can enjoy by associating with it.
- Quick approval and disbursal of the loan amount.
- Less paperwork and documents.
- Easy and hassle- free.
To fulfill your wishes or to meet with the emergencies, the lack of fund is no your problem. All of the needs and desire will be taken care of with the Axis Bank Personal Loan. The bank will assist you to get your loan quick and hassle-free.
Planning to go on holiday to France? Thinking of renovating your home? Need a loan for your wedding? Whatever may be the situation, you can look up to ICICI Personal Loan for fulfilling your wishes. However there is no point of availing a loan without knowing anything about the interest rates.
It is very necessary for you to know about the interest rates since it plays a key role in deciding the amount of EMIs you will pay every month. Incase you don’t know much about ICICI Personal Loan Interest Rates, you need not worry because this article will solve all your queries.
Anybody who meets the eligibility criteria, be it a salaried employee or a self-employed can avail a personal loan from ICICI bank . ICICI Personal Loan Interest Rates lie between the range of 11.59 to 22%. You are also required to pay a processing fee, which is 2.25% of the loan amount you have taken.
Salaried employees and self-employed people can take a maximum personal loan of Rs. 20 Lakh and Rs. 40 Lakh respectively from ICICI Bank. You should keep in mind that you can avail the Personal Loan for a maximum tenure of five years.
It is very important for a loan applicant to carefully look at the current interest rates and then decide because he has to repay the loan amount as well. Many people without thinking twice directly go for availing the loan overlooking the interest rates. This proves detrimental in the long run. Let’s take the help of an example to throw light on this point-
Suppose Abhishek wants a personal loan for his elder sister’s wedding. He approaches ICICI Bank for the same and after checking if he is eligible or not the bank offers him a loan of Rs. 5 lakh. He requires the funds instantly and doesn’t care to check the interest rates. For Abhishek, ICICI Personal Loan Interest Rate is fixed at 16% for a tenure of four years i.e. 48 months.
Now let’s calculate the amount of EMI he has to pay every month. After calculation the monthly EMI turns out to be Rs. 14,171.
But what if he negotiates with ICICI to get same loan amount but at a lower rate of interest. The bank charges him an interest rate of 12% per annum for the same tenure. Now the situation will be quite different. Let’s calculate the monthly EMI which he has to pay under this scenario.
He will now have to shell out a monthly EMI of Rs. 13,167 which is Rs. 1004 less than the previous EMI amount which he had to pay. This means he will save Rs 1004 every month if he manages to avail the loan at a lower interest rate. So it proves the fact that knowing the interest rates is a very important point which must be kept in consideration while availing a loan.
So now that you are well-known about the ICICI Personal Loan Interest Rates you can confidently avail a loan from the bank.
HDFC is one of the most popular private banks of India. It is the fifth largest bank in India by an asset. It provides its customer with one of the best deal in form of personal loan. It does not need any co- applicant or a guarantor.
The Personal Loan is provided to both salaried professionals as well as self-employed. The loan amount ranges minimum from ₹50,000 and exceeds up to ₹25 lakh, the maximum limit for self- employed is 15 lakh. The tenure of repayment of a personal loan is 12- 60 months. The reason to get a personal loan can be anything, to meet the personal needs or buying a horse or an expensive appliance.
The processing fee ranges from 0.25% to 1.5% with applicable service tax. The foreclosure charges are accepted after 12 EMI’s for salaried while 6 EMI’s for self- employed. The pre payments vary by years, for 2nd year 4%, 3rd year 3% and after 3 rd year 2% charges are charged to the borrower. It has one of the best competitive rate of interest that ranges from 11.49% to 20%.
The eligibility criteria to determine your chances:
Age- The minimum age required is 21 years while the maximum age limit is 60. The maximum age at the time of loan maturity is 65 years.
Category of Work- The applicant should be a salaried individual or a self- employed.
Monthly Income- The minimum net monthly income should not be less than INR 15,000. It determines your loan amount as well as the EMI.
Job Stability- The work experience of the salaried individual should not be less than 12 months, of which not less than 1 month of the current employee. For the Self-employed, the minimum of 5 year in current business or profession. Working with well reputed company further enhances your chance to get a personal loan easily.
Cibil Score- Your past credit history, repayments of previous loan and credit card history are all very important in determining your credit score. It directly affects your eligibility to get a personal loan.
Documents- To get instant Personal loan approval following documents are needed to be kept handy-
- An application with recent colour passport size photographs.
- Photo ID Proof- Passport, PAN Card, Driving Card, Voter ID Card.
- Residential Proof- Leave and License / Registered Rent Agreement/Utility bills (up to 3 months), Passport and Business Address proof (in the case of self- employed).
- Income Proof – For salaried- Salary Slip and Current dated Salary certificate with Form-16
- – For self- employed– Bank Statement and ITR/ FORM-16 Office.
HDFC has a wide- spread network of branches in the country. It provides it’s customer with the best quality service both online as well as offline. They are one of the best quality service provider in the country. It gives a HDFC Personal loan with minimal documentation and has complete transparency. It has special offers for women as well as corporate professionals.
State Bank of India is one of the most trustworthy bank of India. It provides its customer with the Xpress Credit Personal loan and Loans to Pensioner. The Personal loan can be used for different purposes from managing emergencies to spending in any occasion. It does not need any co-applicant or security. It provides an individual with low interest and low processing fees. It doesn’t charge any prepayment penalties. The tenure of the repayment ranges from 6-60 months. The minimum amount that can be availed in this category is ₹ 24,000, and can extend up to the amount of ₹ 15,00,000.
Eligibility criteria needed for SBI Personal Loan:
Xpress Credit Personal Loan:
Age- The minimum age required is 21 years, and the maximum age is 58 years.
Nature of Job- Applicant must be a salaried individual with minimum work experience of 2 years or self- employed with the experience in current business for at least 2 years.
The salaried should be from one of the employees of these sectors-
- Central/ State government.
- Central PSU’s
- Profit making State PSU’s
- Educational Institutions of National Repute
- Selected Corporates
Monthly Income – Applicant should have at least an income of ₹ 7,500.
– EMI/NMI should not be over 50%.
Be Ready With These Documents:
- A filled application form with recent colour photographs.
- Photo ID Proof- Passport, PAN Card, Driving Card, Voter ID Card
- Residential Proof- Electricity Bill, Water Bill, Mobile Bill, Aadhar card etc.
- Income Proof – For salaried- Salary slip/ Form-16
- For self employed- Bank Statement and ITR/ FORM-16
SBI Pensioner Personal Loan:
A special personal loan is introduced by State Bank Of India to provide funds to the pensioners whose pension comes in their bank. A step taken by the SBI to ensure that lack of funds should not be a hindrance in achieving their Personal loan needs and expenses or meeting any emergency. It provides them peace of mind in their old age and enjoy the life after retirement without any worries. The maximum amount of pension directed to avail a loan is 50%. The minimum loan amount that is available is ₹25,000 while maximum loan amount available is ₹ 14 lakh(below 72), ₹ 12 lakh(72-74 yrs.), ₹ 7.50 lakh(74-76 yrs.). It has low processing charge and no prepayment fees are charged.
The Eligibility Criteria for SBI Pensioner Personal Loan:
Age- The maximum age of the pensioner should be 76 years.
Nature of Job – The Pensioner should be from either of the following sector as an ex-employee
– Central/ State Government.
– Armed Forces.
Documents Needed Before Applying:
- A filled application with recent color photographs.
- Photo ID Proof- Passport, PAN Card, Driving Card, Voter ID Card
- Residential Proof- Electricity Bill, Water Bill, Mobile Bill, Aadhar card etc.
The State Bank of India have ensured that the personal needs and aspiration of the people are met through their SBI Personal Loan scheme. It requires less documentation and has hassle- free methods to avail the required loan amount in less time.
State Bank of India (SBI), one of the leading names in Indian banking sector, is known for offering a wide range of financial products to one and all, thus fulfilling the needs of many. This is the reason that over the years, the bank has created its own niche and has become the most trustable brand, especially when it comes to offering personal loan in India. Yes, SBI Personal Loan is no doubt one of the top selling financial products that come to you with plenty of remarkable features and benefits.
But, before availing the loan have you ever paid attention to SBI personal loan EMI calculator? Just like other factors such as interest rate, loan amount or the name of the lender, it is also important for you to consider the EMIs that you are paying each month to repay your loan.
After all, you are putting your hard earned money to get the finance for your personal needs. Thus, knowing the EMIs is a crucial or you can say a deciding factor while choosing the best lender.
Apart, from comparing the lenders on the factors mentioned above, it would be beneficial for you to compare them on the basis of EMIs as it can make a huge difference in your financial life cycle. But the question is how to calculate the EMIs? What is the best possible way to know the same? Curious to know the answer? Read the article further as the suspense is about to reveal.
If you are someone who wants to avail a personal loan from SBI, but at the same time eager to know how much will it cost i.e. whether that loan gonna be pocket-friendly for you or not, all you need is an SBI Personal Loan EMI Calculator. Yes, you read that absolutely right! This magical and smart device can solve all your worries by helping you in knowing the EMIs in a better way. All it needs just a few seconds of your life and rest it will do on its own.
You can use this tool anytime anywhere by just feeding few details such as loan amount, interest rate and tenure in it.
Now, the moment it will receive the data from your end, it will fetch the results for you in a hassle-free manner. It is time-saving, user-friendly and gives you the output with ease. That’s why one should always use this device while comparing the lenders on the EMI basis. However, to make you understand better, let’s take the help from an example below.
Just imagine, Praveen Sharma, a Senior Sales Executive wants to buy an SBI Personal Loan of Rs.2,00,000 to travel to Singapore. Well, his loan eligibility matches and the bank is ready to avail him a loan at an interest rate of 11.50% per annum for 4 years.
Now, what’s gonna be more interesting here is the fact that to know whether the EMIs that he is going to pay will suit his wallet or not? Can he actually afford to pay the EMIs of the same loan amount? This is where SBI Personal Loan EMI Calculator comes into play, helping him in knowing the exact amount of EMIs, which is Rs.5,218. With the help of an EMI calculator, he is now aware of the exact amount of EMIs needed to repay the personal loan.
So, let’s just hope, Praveen will take a calculative decision and have an enjoyable loan journey now!
What is the first thing that comes to you mind when you hear the term SBI Personal Loan? Is it the tenure, loan amount or fee/charges? Well, whatever your thoughts, but the interest rate is surely one such factor that grabs the attention of those who knows its importance. Yes, because knowing SBI personal loan interest rates is surely one of the most important things as it can be a game changer for you. What happened, looking so confused by reading the above line? Well, let’s clear all your doubts on interest rates as how they play a pivotal role in your loan journey.
If we talk about State Bank of India, currently the bank is offering you the personal loan at an interest rate ranging between 12.45%-14.95% per annum. So, if you want to avail a loan from the lender, you can get the same on an interest rate mentioned above.
When it comes to a personal loan offered by SBI, you can get the loan for a maximum tenure of 5 years. (60 months) Now, how this interest rate will create a difference in your loan journey is the big question here? Well, actually the lower interest rate is, the better it is for you in the long run as the amount of your EMIs will also be lower in that case.
However, if things are not under your control and a lender is offering you the loan at a high rate, the reverse will happen and you will end up paying the higher EMI till your loan gets repaid.
It would not be wrong to say that personal loan interest rate could be a deciding factor while availing a loan as every borrower wants lower interest rate to reap the maximum benefits in the long run. This is the reason that the moment you think of buying a loan, knowing the interest rate should be your first priority. Let’s understand this concept with the help of an example below.
Suppose, Ravi Sharma wants to avail a personal loan of Rs.5 Lakh. He chooses SBI for the same, and the bank is also more than happy to avail him a loan at an interest rate of say 12.60% p.a. for 5 years. So, what is the amount that he needs to pay each month to repay the loan? Well, the help of an EMI Calculator it comes out to be Rs.11,274.
Now, let’s take a look at another scenario, where the same guy has availed a loan for the same amount, for the same tenure, but with a lower rate of interest i.e. 11.49% p.a. So, what’s gonna be more interesting here is to know how much amount of EMIs he will pay in this case. Is it going to be lower or higher than the previous scenario? Well, let’s see further…
In the second scenario, his EMIs will come out to be Rs.10,994, which is obviously lower than the previous scenario. So, who is the hero here that played a pivotal role in the overall outgo? Well, it’s none other than the interest rate. Hence, now you know what SBI personal Loan interest rates can do,thus how much important it is to know about the same.
Want to go on an exotic holiday with your friends? Planning to make your home more beautiful by renovating it? Are you in dire need of money for a wedding in your family? If you require quick funds for any of these then ICICI Personal Loan is here to act as your savior.
ICICI one of the largest private sector banks in our country provides a personal loan to interested applicants so that they can meet their personal needs. With its innovative and timely banking services ICICI has gained a cult status amongst banking customers.
The bank provides the personal loan to applicants at an interest rate between 11.59 to 22% per annum. One also has to pay a processing fee up to 2.25% annually of the loan amount taken.
After knowing about the interest rate you now need to know if you are actually eligible for an ICICI Personal Loan. Let’s have a look below to know about ICICI personal loan eligibility.
ICICI Personal Loan Eligibility:
ICICI Personal Loan can be availed by both salaried employees and self-employed people. The loan applicant needs to meet the following requirements in order to fulfill the ICICI personal loan eligibility criteria. Have a proper look at all these points-
For Salaried Employee:
- The applicant should be between the age of 23 to 58 years
- Salaried employees should have a monthly income of at least Rs. 17,500
- Individuals who stay in Delhi and Mumbai should have a monthly income of a minimum of Rs. 25,000
- In case the applicant resides in Hyderabad, Chennai, Kolkata, Bangalore or Pune then he/she needs to earn a monthly income of at least Rs. 20,000
- The applicant needs to have a working experience of at least two years
- The applicant needs to have lived in his current residence for at least one year
- The applicant should be in the age group of 28 to 65 years. In the case of doctors, the minimum age has been set for 25 years.
- Self-employed Professionals need to have a minimum turnover of Rs. 15 Lakh whereas a Self-employed Non-Professional must have a turnover of at least 40 Lakhs.
- Self-employed Individuals or proprietors should have a minimum Profit After Tax (PAT) of Rs. Two Lakhs. Self-employed Non-Professional should post a minimum Profit After Tax (PAT) of Rs. One Lakh.
- Self-employed individuals need to have a business stability of at least five years i.e. they should be in their current business for a minimum of five years. Doctors should be in their profession for a minimum of three years.
- The applicant is required to have a minimum of one-year relationship with the bank. It can be a liability relationship (savings or current account) or an asset relationship (loans) which are either live and existing or were closed in the past 36 months.
A strong CIBIL score of over 750 increases your chances of securing a loan from ICICI. So interested applicants are suggested to always a maintain a healthy CIBIL score.
If you have a good CIBIL score, what are you waiting for? Contact your nearest ICICI Bank and get the perfect deal for ICICI Personal Loan as soon as possible.
Loan is a facility that can be availed in times when people run short of funds. It is an agreement where the lender agrees to give money to the borrower on a condition that he will repay it along with the interest. Since the loans come with an interest payment obligation, it is important for the borrower to know how can he reduce the interest charged. The ideal way is, the borrower should opt for the category of loan that best suits his purpose and has the lower rate of interest. The loans are broadly divided into two categories namely secured and unsecured loan.
Secured Loans- Secured loans are those that are protected against assets or collaterals. These type of loans are suitable when the borrower require a huge sum of funds for longer duration. Since these loans are secured the interest rate is comparatively lower. But in case the borrower is unable to pay off the loan the lender can sell off the collateral pledged to recover the amount. Loans like car loan, mortgage loan and home loan are pledged against security.
Unsecured Loans- These loans are not secured against any collateral or asset. The lender takes a risk while issuing such a loan hence the interest rate on these loans are higher. The other limitation of this type of loan is that it is available for shorter tenure. Also, the eligibility amount is decided on the basis of personal income. But, it is suitable for people who require funds urgently and do not want to engage in the lengthy process. Personal loan and business loan fall under this category.
The selection of loan depends on the requirement of the borrower. As the needs of the applicants are different so is the type of loan. The different types of loan are discussed below :
Types of Loan-
Personal Loan – Usually unsecured, a personal loan can be taken to fulfill any of the monetary requirement. It can be availed to meet the immediate needs of funds. The personal bank loan is the best option for individuals wanting small amount of funds for short duration.
Business Loan – Business loan is drafted to meet the business expenses such as purchase of assets or to finance the working capital requirements. These loans too are unsecured and therefore are issued after the assessment of the business venture. The bank loan for business are also called as SME loans and might be provided against the hypothecation of an asset.
Car Loan or Vehicle Loan – This type of loan is specifically made for people planning to purchase a vehicle. It is a secured loan where the collateral is the purchased bike or car. If the borrower defaults in paying the amount the lender can recover it by taking back the vehicle.
Home Loan – This loan product is for the aspirants who wish to own their house. It can be taken for purchase of new house, building a house or for extension of existing home. The tenure of this type of secured loan is relatively longer as the loan amount is high.
Gold Loan – As the name suggests the funds under this loan are lend against the security of gold. The applicant can mortgage the gold and get the funds easily.
Loan Against Property – This loan can be chosen when the applicant has a property to mortgage and want a large sum of funds for longer period of time. The loan against property is available at the cheaper rate of interest in comparison to unsecured loans.
To lower the amount of interest charged on a loan the applicant should apply for a secured loan. And if the need is urgent, the borrower can select unsecured loan to avoid time-consuming process.