Personal Loans Simplified: Almost all banks, be it private or public, in India are offering personal loans and don't ask for any collateral or security from the borrowers against the amount. This is an all-purpose loan, which means that the amount can be used for any purpose, such as home repairs, marriage expenses or paying medical bills. In-short, all you need to do is to apply for the loan and chances are bright that you will get the loan amount within a period of 7 days. HSBC Bank, HDFC Bank, Allahabad Bank, Punjab National Bank, Dena Bank, ICICI Bank, State Bank of India......you name the bank, and the bank is providing these loans. Getting a personal loan has become as easy as counting 1,2,3.
Is It Available For All?.......Yes, except the NRIs. All you need to do is to get ready with some basic documents of your identity, salary, age and address. Your repayment capacity is the most important factor that can make or break your chance of availing the loan. For enabling more and more people to opt for personal loans, banks also allow the applicant to add his/her spouse's salary and thus, increase eligibility for the loan. In addition to the above factors, your credit ranking also is an important factor which banks take into consideration while saying Yes for your loan application.
Is 'All Izz Well' With Personal Loans?.........Not exactly. Though these loans come as an immediate help in times of need, they come with very high interest rates, which generally range between 18-26 per cent. Things just don't end up here. Opt for a personal loan only if you are sure of timely repayment of EMIs. So, if you end up not paying your EMIs on time, this will attract late payment charges and many other hidden charges and you might find yourself into a trap. Experts advice not to opt for this type of loan, unless you are in dire need of funds.
So, finally what to do?..........If you are planning to opt for one, make a detailed analysis of your situation. Is there any way out? Is there any other source from where you can borrow money? However if you need money urgently and has not much to set against the loan amount, personal loan is definitely a good option.