Are you in need of cash but do not have any solid assets against which you could take a loan? Then you have an option to rely upon that has been designed specially for this purpose. Personal loans can be availed for any purpose and thus they are of great help at any point you do not have cash.
However it is important for us to deeply examine any loan offer and make the right choice. So following are few facts that help you decide if you want to avail a personal loan.
• Personal loans do not require you to produce any collateral or security, like other loans.
• There is no agent or middleman while obtaining a personal loan.
• Banks are always ready to offer this loan.
• You may avail personal loans according to your eligibility ranging anywhere from Rs. 15,000 to Rs. 10,00,000.
• Paper work to get the loan sanctioned is less.
• The payment period is up to a maximum of 60 months.
• It is better to avail a personal loan than to borrow cash on your credit card in terms of the interest rates charged on both.
• You can use a personal loan for whatever purpose you want.
• The eligibility criteria are stricter in case of personal loans, since there is no security required and the paper work is also less.
• The bank checks on your capability to repay more than any other loan due to the same reason.
• Only an approved category of borrowers are given personal loans because of the higher amount risk associated with them.
• Personal loan rates are high as compared to the interest rates charged on home loans, loans against property or loans against shares. They could range from 12% to 30%. Even the service charges and prepayment penalty are very high.