What do you do if you have to make a large purchase or meet financial emergency? Even though you cannot afford it, you still have a solution. Personal loans from banks will surely help you to buy what you want.
In this article, you will get to know a few essential points about personal loans.
What Is A Personal Loan?
A large number of consumers take personal loans for their purchases, i.e., to meet their personal needs or any other requirements. A personal loan is very helpful if people fall short of money to make any purchase.
A personal loan is basically an unsecured loan taken by individuals from banks or financial institutions to meet their personal requirements. Financial institutions consider several loans before granting a loan. It includes an individual’s income level, credit, employment history, repayment capacity.
A personal loan is not secured against any asset, i.e., the borrower does not have to provide any surety like gold or property to avail the loan. This makes that the lender cannot auction anything buyer owns in case of a default.
Unlike a home loan or a car loan, the interest rates on personal loans are higher compared to interest rates of home loan, car loan or gold. This is because of the risk involved on the part of financial institutions lending money without any security of the borrower.
However, defaulting on a personal loan is not at all a good choice as the buyer will have to face problems when taking loans or credit cards in future.
When you take a personal loan, the bank will not monitor its use. A personal loan can fulfill any personal financial need such as buying a new home or a new car, going for a vacation, spending on children’s education, purchasing household appliances, medical expenses etc. Personal loans can also be used for starting a new business or investing in any other businesses.
What is the Eligibility Criteria to Avail A Personal Loan?
A buyer should have a regular source of income. He/she can be a salaried individual or a self-employed business person. Apart from that, a lot of factors are important before granting a personal loan such as general criteria, i.e., an individual’s age, occupation, income, credit history, etc. Though, it varies from bank to bank. Longer or shorter tenures is possible depending upon the bank.
The Limit of Borrowings:
The amount of money an individual wants to borrow depends upon whether that individual is salaried or self-employed. Generally, banks restrict the EMI amount to ensure it does not exceed 40 to 50% of the buyer’s monthly income. In the case of self-employed individuals, a personal loan is given based on financials related to their business, such as profit and loss statement, liabilities, etc.
It is important for an individual to compare offers of various banks or financial institutions before availing a personal loan. One must keep in mind many factors such as interest rates, loan tenure, processing fees, etc., of various financial institutions.
If you’re looking for a personal loan, then Swift1K is for you. It is fast, secure, and reliable. Click here to apply for the personal loan. The process is easy and simple.
- Click on www.swift1k.com; it will direct you to the registration page.
- Enter the following details:
- Loan Amount
- Email Address
- Zip Code
After filling the above details, click on get started.
- Select the purpose of the loan, enter the credit score.
- After that, enter your first legal name, last legal name, date of birth, last four digits of SSN and phone number.
- Click the next step and upload all the said documents.
- Click on submit to proceed further,
Your application will be sent for review, and on loan approval the lenders will contact you.
You can avail up to 1,500 to meet yo