When one fails to adjust available financial resources to pay for small urgent expenses like house renovation, marriage expenses, for a vacation abroad or for buying useful electronic goods etc, one understands the importance of loans. They act as saviour when bankrupt and are applied to pay off for small requirements.
Many banks have lured customers by introducing different types of loans with better features than the ones offered by their rivals so that they can secure their positions in the competitive economic market. However, it is the responsibility of the customer to be absolutely sure of what is in store. A thorough online survey must be done to know the eligibility criteria, interest rate, processing fees, tenure within which one needs to repay and understand the terms and conditions of banks.
Features of personal loans are:
- It is granted without the need of security using minimum paperwork thus obtaining an approval is hassle-free.
- The amount granted is not used for only any specified purpose.
- Time required for granting the loan amount depends on the timely submission of documents, which are minimal. Usually a time period of seventy-two hours is sufficient.
- Repayment options are diverse and one can choose to pay through account debit or post-dated checks during a tenure ranging between one to five years.
It must be noted that these come at great cost as the interest rates are pretty high.
They are granted to both self employed as well as salaried people alike. The former must be within the age bracket, employed so that they can repay loans and must be a resident of the country having a valid residence proof. The latter have similar requirements including that they should have a minimum experience in the same business for a set time period.
The two important conditions one must look for are the interest rate and penalty on prepayment. Paying just the minimum due per month should be avoided as it varies according to the bank.