Compare and Apply Personal Loan Online
A personal loan customer can avail an additional loan amount through the top-up facility over his/her existing loan. The loan amount will be subject to the terms and conditions set by the financial lender, while the interest rate may be the same as the existing loan or could be up to 1% more than the interest rate of the current loan. The tenure of the top-up personal loan will be subject to that of the existing personal.
The approval of a personal loan application depends on many factors. When you apply for a loan, you should make sure that you are fulfilling all the factors to ensure the approval of your loan application. The eligibility criteria for Apply personal loans may vary from lender to lender. However, there are some common criteria which include the age of the applicant, his or her income, credit score, the status of employment, and so on.
Before you apply for a loan, make sure that all the eligibility criteria are being fulfilled. This will help you avoid the rejection of your loan application. Although there are other options that you can resort to in case your loan application gets rejected, it is recommended to double-check before applying to avoid the chances of rejection of loan application.
Personal Loan Interest Rates
Personal loan interest rates vary between 8.30% p.a. and 49% p.a. The interest rate charged on your loan is determined based on the loan amount you have taken, your credit score and the repayment term. If you maintain a high credit score and a good relationship with the bank, the interest rate on your personal loan can be reduced.
Use of personal loans
What can you use a personal loan for? Since it is an unsecured Apply Personal loan without the need for any collateral, there are very few limitations on how you can avail a Apply personal loan. It can be widely used to consolidate your debt (from other loans or credit cards), make high-value purchases for which you don’t have the cash, or for emergency situations.
It cannot be used for speculative purposes or for investing in the stock market. Some of the common reasons people take Apply personal loans include meeting sudden business or educational expenses, paying for a vacation, buying high-end electronic gadgets or household appliances, wedding expenses, emergency medical expenses, home renovation, etc. If the interest rate on a Apply personal loan is lower than that of a vehicle loan used to buy a vehicle. Thus, Apply personal loans have various uses and can come in handy to meet planned or emergency expenses.
Personal Loan EMI Calculator
Use the BankBazaar Personal Loan EMI Calculator to calculate your EMIs in advance to plan and manage your finances better. Apply personal loan calculator lets you check your loan eligibility and helps you compare loans offered by different banks.
All you need to do is enter the loan details, including your preferred loan amount, interest rate, tenure and processing fee. Press “Calculate” to check your EMI. The lowest applicable EMI per lakh for a tenure of 7 years at the lowest applicable interest rate is Rs. 1,599 is
The result is followed by an amortization table, which will give you a detailed breakdown of your repayment schedule.
Documents Required to apply Personal Loan
- Copy of your Passport
- Visa Copy
- Your official Email ID or the Email ID of the HR
- Bank Statements
- Salary Certificate or salary slips
- NRO/NRE bank statements of the last 6 Months
- Proof of Identity, Residence, Income, and Assets
- Recent passport-size Photographs of yourself and the guarantors
Personal Loan Fees and Charges
Following are the charges and fees of Apply personal loans available from various institutions.
- Processing charges
- Goods and Services Tax (GST)
- Verification Charges
- Charges are levied for issuing duplicate statements
- Penalty for default
- Penalty for prepayment and partial repayment of loan
Apart from this, lenders may also charge for documentation, stamping, credit administration, collection etc. The levy and rates of these fees and charges vary from lender to lender. However, you can check the fees and charges charged by top lenders in India before applying for a Apply personal loan.
Loan Repayment or Modes of Repayment
There are a number of repayment methods offered by lenders. Although these conditions may differ from lender to lender, the most common payment methods can be summarized as follows:
Electronic Clearance System (ECS): ECS or Electronic Clearance System is one of the most widely used repayment methods. It is an electronic mode through which funds are transferred from one bank to another.
Post Dated Checks (PDC): Post dated cheques, as the name suggests, are checks that are issued by you for a future date. The lender will use this check on the specified date to deposit or encash the amount shown on it.
National Automated Clearing House: National Payments Corporation of India (NPCI) offers a program called NACH to all banks and financial institutions. NACH allows processing of transactions in real time. This method can be used to repay your loan.
Debit Order or Standing Instruction: You can instruct your bank to pay a specific amount to another bank or bank account at regular intervals. This is known as standing instruction or debit order. Your bank will pay a fixed amount towards your loan repayment on a regular basis through this system.
Also read: How To Get A Best Two Wheeler Loan in Canada? 2022
Personal loan top up
A personal loan customer can avail additional loan amount on his/her existing loan through top-up facility. The loan amount will be subject to the terms and conditions set by the financial lender, while the interest rate may be the same as the existing loan or may be 1% higher than the existing loan interest rate. The tenure of the top-up Apply personal loan will be subject to the existing Apply personal loan.
Key features and benefits
- Existing personal loan customers are eligible for loan top-up provided they have paid their EMIs regularly and have no arrears.
- Quick or instant disbursement of top-up loan amount.
- Minimal documentation is required.
- Zero processing fees offered by a number of lenders.
- No collateral is required.
Personal Loan Balance Transfer
Personal loan balance transfer facility enables customers to transfer their existing loan to another financial lender. If other financial lenders are offering better interest rates, the tenure is much more flexible, they wish to top up on their existing loan, this can be done.
Key features and benefits
- Get lower interest rate on current loan amount.
- Option to top-up the loan.
- Avail flexible payment options.
- Get benefits like zero processing fee, waiver of last EMI benefit etc.
- To get better customer care service.
How to avoid personal loan application rejection?
Approval of Apply personal loan application depends on many factors. When you apply for a loan, you must ensure that you meet all the factors to ensure the approval of your loan application. Eligibility criteria for Apply personal loans may vary from lender to lender. However, there are some general criteria which include applicant’s age, income, credit score, employment status, etc. Before you apply for a loan, make sure that all the eligibility criteria are fulfilled.
This will help you avoid rejection of your loan application. Although you can resort to other options in case your loan application is rejected, it is recommended to double check before applying to avoid the possibility of loan application rejection.
How to Check Personal Loan Status?
There are two main ways to check the status of your loan application. Most lenders offer both online and offline modes through which you can track your loan status.
Most lenders offer the option of logging into their official portal to help you track the status of your loan application. You can use the application number or reference number issued by the lender for this purpose. On the other hand, if you have applied for a loan through a third-party aggregator website like Bankbazaar, you can log into its web portal and track the status of your loan application directly.
If you are not comfortable using online platforms, you can also track Apply personal loan application status through offline means. You can visit the branch office of your loan provider and check the status of your loan application. On the other hand, you can also connect with your lender over telephone through their helpline or customer care number.
For both these methods, you will need to provide some basic details like your name and application number or reference number. Visit BankBazaar to know more about how to track your Apply personal loan status.
What type of personal loan interest rate should you go for?
Lenders offer personal loans with fixed or declining balance interest rates. No matter how much you pay through Equated Monthly Installments, interest will be charged at a flat rate on the entire principal amount (EMIs). Despite the declining balance, the interest rate will depend on the number of equal monthly installments you make. Annual and monthly reducing balance rates are the two most common types of reducing balance rates lenders offer you.
Under the annual declining balance arrangement the interest rate will be applied to the outstanding principal at the end of each year. In contrast, under the monthly reducing balance approach the interest rate will be applied on the balance after each EMI payment. If you want to reduce your interest obligations, within a declining balance, the declining balance option is mathematically superior to the flat rate. If you can choose, choose a decreasing monthly balance to save more money on interest.
Factors Affecting Personal Loan Interest Rates
Banks and NBFCs have established a set of requirements for Apply personal loans and base their interest rate offers on those requirements. These are the factors that affect Apply personal loan rates.
Loan Amount – The required loan amount of the borrower is an essential factor that banks consider. The loan amount is determined based on the income of the borrower and the industry in which they are employed. Therefore, the borrower’s ability to borrow depends more on their income level. Interest rates on Apply personal loans generally decrease as the loan amount increases.
Tenure – The length of the loan directly affects the interest rate. The proposed rates will decrease as the term lengthens.
Borrower’s Income – The interest rates on your loan ultimately depend a lot on your income. The lender will be convinced that you can repay the loan on time if you have a high income and a steady income stream. If you create this impression, you will benefit from cheaper interest rates.
Repayment Ability – A person’s ability to repay a debt is a key factor in establishing interest rates. Lenders believe that the borrower will repay the loan on time if he has no other financial obligations. Given that they can easily repay the debt without experiencing any further defaults.
Credit Score – Your credit score also affects how much you can borrow. Not to mention the interest the lender will charge you. So, if you have a credit score of at least 750 and no defaults. Rates can be significantly cheaper.
Tips for getting personal loan at low interest rate
Following are some crucial factors to consider for availing a Apply personal loan with low interest rate:
- Build and maintain a credit score of at least 750.
- Look for offers already pre-approved by banks and NBFCs.
- Approach banks and NBFCs with which you already have a loan and savings account.
- Keep an eye out for lenders dropping interest rates during the festive season.
- To check and compare Apply personal loan offers from multiple lenders, visit online financial markets.
How to get Personal Loan Statement?
You can easily contact your lender through their online web portal or in person and request your loan statement. On most lender websites, you can simply log in using your online credentials and provide your loan account number. Once you have tracked your account, you can request a statement which is either sent to your registered email id or provided in the form of a PDF file which can be downloaded. Similarly, you can also visit the branch office of the lender from where you have taken the loan and request a statement. Apart from that, you can also request your personal loan statement through phone banking.
Tips for Successful Personal Loan Application
There are a few important things to keep in mind when searching for a Apply personal loan. Check out list of most helpful tips that will certainly help you with your Apply personal loan.
- Assess the need for your loan
- Do proper research to get the best rate
- Check your credit history
- Review the fine print on your loan document carefully
- Choose your loan tenure by assessing your repayment ability
- Choose an affordable interest rate
- Select your loan amount as per your convenience
- Check your EMIs properly
- Compare the processing fee
- Select fixed or variable interest rate according to your preference
Things to do after personal loan closure
If you have recently paid off (either paid off or closed off) Apply personal loan, you may realize that your obligation to the loan is over. However, that is not the case. There are certain things that you should do after paying off Apply personal loan.
No Debt Certificate (NDC):
A No Debt Certificate (NDC) is issued by your lender once you pay off the debt. This is one of the most important documents that you should collect immediately after paying off your loan. It is also a wise decision to retain this document for a long time. This certificate validates the payment you have made. Without this document, you cannot prove that you have paid your debts. If you are keen to take another loan in the near future, you will need this document to prove that your previous loan has been repaid.
Generally, this document is issued by your lender on the spot if you are paying the final amount through hard cash. If you are paying by check or NEFT or any other means, the lender will issue an NDC and either send it to your registered address or ask you to collect it from the lender’s branch office.
Statement of Account (SoA):
A Statement of Account or SoA, along with NDC, will help you prove that your debt is fully paid and paid on time. This is an optional document often issued by some lenders. If your lender provides this document, you should consider getting it. However, you should also look for any discrepancies in the credit score. If you find something wrong, you can use SoA to make necessary changes to it.
Collection of unused cheques:
If you have some check leaves which are not used, you should also collect them. Collection of No Dues Certificates and unused check leaves usually mark the end of the loan closing process.
Check your credit score after closing the loan: This is just a recommendation. It is not mandatory to check the credit score after the closing process is over. However, it is recommended that you check the score to ensure that there is no difference in the score. If there is some possibility of you getting another loan within 1 to 2 years of closing the current loan, it is recommended that you check the credit score immediately after closing the loan.
Disbursement of personal loans
Personal loan disbursement is basically the process of sending the loan amount to the customer’s bank account by the financial lender. The loan is disbursed after submission of relevant documents of the customer and verification and approval of the financial lender. Financial lenders offer Apply personal loan disbursement within seconds, while others take a few hours to a few days to disburse the loan amount after approval.
How do I repay my personal loan?
There are many ways through which you can repay your loan. This includes:
- By Electronic Funds Transfer (EFT).
- by check
- By paying physically at the lender’s branch
- By standing notice for automatic deduction from your account