A personal loan is a remarkable financing option for those who have long-term financial goals. When you opt for a personal loan, you have the option to choose your repayment schedule according to your capacity.
On the other hand, personal loan approval, processing, and disbursal time is relatively quick. Therefore it makes an attractive financing option for those who demand a quick financial fix.
In this article, we will unveil a few questions that you need to ask before acquiring a personal loan. Please stick to the end of the article to know more. Let’s find out!
● What is the maximum amount of personal loan that can be borrowed?
The maximum amount of personal loan you can borrow entirely depends on your monthly income. So, you should consider your monthly income and expenses while calculating your loan amount. You should note that most of the banks offer a minimum personal loan amount of Rs. 50,000.
● Who is eligible to avail of a personal loan?
Both salaried and non-salaried individuals are eligible to take personal loans. If you wish to apply for a personal loan, you must be at least 21. As a salaried individual, you cannot be older than 60 years.
Please note that the upper age limit for self-employed individuals is 65 years. Also, you need to have a minimum monthly income of Rs. 25,000.
● What is the rate of interest charged for personal loans?
You should note that the rate of interest on personal loans is comparatively higher than other loans as it’s unsecured. The rate of interest charged on personal loans can typically range between 10.99% and 22% per annum.
Please note that the rate of interest on your loan depends on your loan tenure, credit score, and repayment capacity.
● How can I repay the borrowed amount for personal loans?
You are required to repay your personal loans in the form of monthly EMIs. Your repayment amount includes the interest rate that is charged on the loan amount.
Some lenders set a standing instruction against the customer’s bank account, and the EMI amount is automatically deducted on a specific date. Besides, you can also choose to repay the outstanding amount before the end of your loan tenure. Sometimes, you might also need to pay small fees as a foreclosure charge.
● Can I become a guarantor for a personal loan?
The majority of banks and NBFCs usually demand a guarantor in case of personal loans. This becomes applicable when the lender isn’t quite sure of the borrower’s repayment capacity.
So, if you sign up as a loan guarantor, you are responsible for making EMI payments. And whenever the borrower is incapable of paying the EMIs, you need to do the same on their behalf.
● What is the maximum tenure of a personal loan?
The repayment tenure for a personal loan can typically range between 1-5 years. Remember that you can choose your loan tenure by considering all other financial obligations. So, if you choose a longer loan tenure, your interest rate will eventually increase.
To Conclude
Personal loans are immensely popular with those who are keen on funding large purchases with convenient repayment options. If you are willing to opt for a personal loan, then you can take a closer look at the offerings of Bank of Baroda. They will swiftly disburse your personal loan so that you can easily handle all your urgent financial requirements.
The Bank of Baroda offers the best personal loans with minimal documentation, attractive interest rates, quick loan approval, and disbursal. Log on to their website and apply for a quick personal loan right away!