Criteria for getting a personal loan in India

by Properties Loans Personal Loans

Personal loans are something that every individual who belongs to a middle class family would require at some point of their lives. This is because that one might not always have quick cash at his disposal. Other than that a person may also go for a personal loan to keep his savings intact and that he can slowly pay back the loan amount that he had taken. Even though the rate of interest that the banks charge for this type of loan is much higher than that of the other kind of loans that are available in the market. As these loans are unsecured, so to meet the personal loan eligibility criteria is also a task in itself. An unsecured loan means that the banks do not ask for any collateral to be kept with them and they do not even ask for a guarantor, for in case the borrower is unable to pay back the loan that he had taken then the banks could liquidate the assets that were kept as security, but this not an option here for them. Therefore they charge a higher rate of interest from the people who come to apply for a personal loan to their bank. A personal loan can be taken for any purpose such as buying a refrigerator, or an air conditioner, or take a top up on the loan that has already been taken, or for the furnishing of the house. In short these loans are short tenure loans and are been given to fulfill a persons' immediate needs.

All the banks in the country offer personal loans to people, though the rate of interest that are charged may differ from one bank to another. There are many kinds of loans products that are available in the market, which gives the people a lot of options to choose from before buying a loan. The banks these days provide a lot of services to the clients who get associated with them, especially the big private players who have made the officers to go to the doorsteps of the clients to get their documentations completed, and so that their customers do not have to take much pains to do such things. The market scenario though seems gloomy at the present moment with the rising inflation, and the depreciating Rupee. These things have caused a lot of problems in the economy and due to which the people have become quite wary of taking loans at the present moment. As the Reserve Bank, has given the signals of increasing the interest rates that would cut down liquidity from the market, and in turn would help in raising the value of the Indian currency, and also increase the value of the bonds. The eligibility criterion has become strict, and the borrower now either has to have a good income or he should have a good credit score, which could help him, negotiate with the banks for getting a personal loan, or he might have to pay a higher interest rate.

Summary The criteria for getting a personal loan by different banks is different. One has to have a good credit record in today’s time, as the norms have been made stricter to control the growing inflation. So, to get a personal loan one has to have a good financial track record. Author Mr. Tejinder Singh is the owner of the website www.propertiesandloans.com, and on this site one can get all the information regarding the ICICI bank personal loan, axis bank personal loan, etc. For more such information visit the above mentioned website.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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