5 Things you should know about personal loans
by Finway FSC Empowering People FinanciallyAs
the name suggests, personal loans are loans taken for personal reasons and can be
Loan against Property or
unsecured loans. This can vary from person to person. These loans are of
two types and are given to the customers for a period beginning from 12 months
to 7 years. Owing to this, we must know about how these loans impact the
finances and the kinds of loans available.
What
is the fundamental functioning of a personal loan?
A
personal loan is taken for various reasons such as education, wedding,
business, home renovation, emergency medical aid and many more. This can be
taken for a tenure ranging between 1 year to 7 years. Within this span, they
must be returned through EMI's. The monthly installment amount depends upon the
tenure for which the loan is taken.
What
are the types of Personal Loans?
These
are unsecured and secured loans.
Secured
Loans: Loan against property is the secured loan and is usually used as a
return on investment as the property is at stake. So if you need Business Loan in Delhi,
then you must opt for this kind of loan.
Unsecured
loans: These are loans that are given after checking the credit score of the
customer along with other eligibility criteria.
Who
lends Personal Loan?
Financial
Institutions and banks lend this kind of loan. However, not just banks, other
institutions such as consumer finance companies also provide this kind of loan.
Peer to peer lenders also provide, but with a high rate of interest. It is
always better to check the legitimacy of a lender before handing over any
eligibility papers and taking the loan. Security is a must in dealing with any
documents.
What
else, other than Personal Loans?
It
is not always possible to take a Loan
Against Property or an unsecured one due to many reasons. In that
case, one can always choose to take credit cards that also give you an ability
to use overdraft. Through this, you can pay small debts that have incurred over
some time. However, for this to your creditworthiness is scrutinized and post
all the verification, a loan is sanctioned.
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Created on Oct 29th 2019 01:39. Viewed 470 times.