Personal loans are offered by banks and online lenders and can be used for a wide variety of needs, from making a home repair to paying for dental work. It can open up new possibilities, act as a lifeline in tough situations and even help you repair your finances when you’re badly in debt.
A personal loan is a short-term loan to assist you with your finances. These loans have become quiet popular today, and now this is the main way to get financial assistance in the form of a cash advance.
Since it is unsecured in nature, lenders have stricter norms regarding eligibility and sanctioning of personal loan. But some of the basic eligibility criteria the applicant must fulfill are:
Age limit – The standard age limit is minimum 21 Years.
Employment Status : Employed or In-business/self employed.
Repayment Tenure: upto 60 Months
Credit Score : CIBIL score of 600 or more
The Factor depend on rate of interest and the eligibility are:-
Your employment is also an important factor in the loan-approval process.
The higher your credit score, the better are your chances of being approved.
As far as processing fee is concerned, it varies from bank to bank, loan amount or the special schemes operated by respective lending institutions. It will be in the range of bank to bank differ. However the best part of Personal Loan is processing fee is not charged upfront, it gets deducted from the loan amount. So here we get good option to compare the loan schemes with various banks and pay processing fee to the bank we zeroed in.
Foreclosure Charges also vary from lender to lender. In few institutions, it is NIL after a certain period of time which is known as Lock-in period or the charges get reduced after 1 year or 2 years.