Women have been playing an essential part in India’s growth. They occupy vital leadership positions and own businesses that directly influence the economy. With high experience and immense knowledge, they help in molding the next generation of leaders and entrepreneurs, demonstrating their worth to the present and future.
Financial institutions, therefore, offer customized products to help women meet their financial goals. Personal Loans for women are the most popular, as they have many exciting features.
But first, what is a Personal Loan?
Personal Loans are a sum of money lent to borrowers in exchange for future repayment of the value or principal amount along with interest. It is a specific, one-time amount repaid in monthly installments.
How does it work?
A Personal Loan is a debt incurred by an individual or other entity. The lender advances a sum of money to the borrower. In return, the borrower agrees to a particular set of terms, including any finance charges, interest, repayment date, and other conditions.
Personal Loans do not require the borrower to furnish any collateral. The loan application requires approval by the lender, and each party should agree to the loan terms before the funds get disbursed.
Benefits of Personal Loans for Women
Personal Loans for women come with several benefits, but the biggest takeaway is that they can help address your personal and professional financial needs. Some NBFCs offer special loan schemes to women to meet their requirements, such as education, wedding, travel, medical treatment, etc. Every NBFC has different eligibility criteria for a Personal Loan.
Personal Loans for women are unsecured with competitive interest rates and customized EMI plans. These loans help women meet the financial needs in their professional or personal life. Businesswomen and their salaried counterparts can apply for Personal Loans for women and get funding at competitive rates. The interest rates for women’s Personal Loans are among the lowest, meaning more savings.
Here are some benefits of Personal Loans:
- Low-interest rates: Women applicants usually get Personal Loans at the interest rate of 10.25% p.a. onwards.
- Higher Loan Amount: The loan amount offered to women ranges up to ₹30 Lakh.
- Flexible Tenure: The loan tenure for women applicants is usually up to 5 years.
- Minimal Processing Fee: The processing fee is between 3% and 4%.
- For lenders not offering women-specific Personal Loan schemes, women applicants can also avail of online Personal Loans to meet their requirements. Some lenders also provide pre-approved Personal Loans with instant disbursal to their existing female customers with good credit scores.
Women applicants’ online Personal Loan interest rates depend on their credit profile and specific eligibility criteria. Hence, comparing the Personal Loan interest rates offered by lending institutions and NBFCs would give you a rough idea of the loan interest rates offered to female applicants.
Eligibility Criteria for Personal Loans for Women
Applicants need to meet the following eligibility conditions to get loan approval.
- The age of the applicants at the time of the loan application should be 22 years.
- The maximum age at the time of loan maturity is required to be 58 years.
- The Personal Loan applicants should be employed with select private sector companies and Central/State/Local government bodies, for at least two years, with a minimum of 1 year with the current employer.
- The required minimum net monthly income is Rs 20,000.
Women applicants with credit scores of 750 and above have higher chances of obtaining Personal Loans at lower interest rates. Some lenders may also approve Personal Loans to women applicants with low credit scores.
Lenders usually prefer to lend Personal Loans to government employees due to their income certainty and job stability. In the case of lenders factoring in the credit risk of loan applicants while setting their interest rates, women government employees have higher chances of availing of Personal Loans at lower interest rates.
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