subject: Research On Personal Loan And Get To Know About Its Benefits [print this page] People need money for various reasonsPeople need money for various reasons. When a need demands more than the money earned, then there is a need to raise that money through a loan. A personal loan is one such type of loan which is popular in India. Traditionally, loans were offered by banks, only to those individuals with high salaries. Apart from banks, people used to rely on other sources such as insurance companies, private financial institutions and petty financers to raise loans.
Today, with the advent of many private banks apart from nationalized banks, private insurance companies apart from nationalized insurance companies such as Life Insurance Corporation of India, New India Assurance, United India Insurance and many other private finance institutions around, it is very easy to obtain a personal loan.
In todays world, a sudden need for money can arise in an instant. Personal loans come very much in handy in such unforeseen conditions. These loans are very useful in dealing with small financial needs that need immediate attention.
One of the easiest ways of obtaining loans is through banks. For a long time, personal loans have been synonymously connected with banks. Banks in India, both private and nationalized, offer loans to their customers.
But, one should be a careful while taking personal loan India. In todays financial market, not all financial institutions charge same interest. Some banks charge higher interest in comparison to other banks. Hidden charges and terms and conditions of banks are also important. Sometimes, these are overlooked by borrowers, which should not be the case.
A salaried employee can obtain the personal loan in comparison with other people. Lenders look for security and repaying capacity in personal loans more than anything else. A steady income can mean a good repaying capacity of the individual.
Some of the criteria to look for in personal loan India include
The amount of the personal loan advanced to a person will depend upon the repaying capacity and the stipulated time period under which the loan has to be repaid. The time period under which most personal loans have to be repaid will be from 12 months, 24 months or 48 months depending upon the institution which is offering the loan.
Under these loans, no property or collateral is taken by financial institution and so, repayment capability of the person is verified with parameters such as the amount of salary, banks statements for past 6 months to one year and credit history.
Interest on personal loan is also a concern for many borrowers. Interest for personal loans is very high in financial institutions such as banks, insurance companies or private financial institutions. Lack of any collateral security is one of the reasons for high interest rate.
Today, one can compare the best personal loan from a multitude of personal loan India providers. One can even use online EMI calculators and can select the best personal loan.
