A personal loan is granted to the borrower to meet the requirements of immediate personal needs. These loans may be acquired for a variety of purposes like home renovation, credit card payments or some family function like marriage etc.
Personal loans are of two types:
(a) Secured loansIn secured loans, you will have to pledge some collateral like your assets etc. while no collateral is required to avail unsecured loans. The latter category of personal loan in Delhi is granted to the borrowers on the basis of their financial standings and repayment capacity. Credit Bureau India Limited (CIBIL) keeps records of your credit history and gives you credit rating based on your past credit card and loan repayment transactions. Your credit history is taken into consideration by some money lenders and it plays a crucial role in the acceptance or rejection of your loan application, especially if it is adverse.
Following individuals are eligible for personal loan:
. Salaried employeesHowever, you need to be a citizen of India and must be above 18 years of age to avail personal loan in Delhi. You must be gainfully employed and should not be an insolvent. Even if your credit history is adverse even then you can avail personal loans in Delhi provided you meet other eligibility criteria.
However, you can always negotiate a good loan deal for your personal loan and bargain on upfront fees. Most websites provide a tool called Loan Amortization Calculator. It is actually an EMI calculator that provides you a fair idea about your total loan amount, EMI (Equated monthly installments) amount, tenure of loan amount and the total interest that you will be paying on your actual principal amount.
You need to do some homework at your end also before you apply Personal Loan in Delhi . For example, you should enquire about: Prepayment penalty: Most borrowers tend to pay their loan before the expiry of entire EMI tenure to get rid of the debt. Ask your lender if it will allow you to prepay your loan or would there be any penalty for it. If yes then how much and plan your repayment accordingly.
Processing Fee: Enquire about the loan processing fee. Though it is a onetime flat charge that is levied when your loan is sanctioned, you can negotiate on it in some specific cases.
Documents required may vary from bank to bank and lender to lender, but the following documents are usually required by all money lenders to approve your personal loan in Delhi:
