Browse Article

Why the personal loan is preferred over other loans

July 8, 2016 | Author: | Posted in Credit

A personal loan can be used to satisfy individual needs without any collateral. It can be used for medical expenses, consolidating debts at lower interest rate than that of credit card interest rates.

Personal loan is good for the following reasons:

It does not need collateral

It does not need guarantor

Lenders don’t monitor end use of personal loan

Speedy Approval

How strong your are in repaying capacity

Eligibility Criteria for getting the Personal loan

Your credit history has to be strong that reflected in your credit report

The total number of year your work experience

Your employer profile and the type of company you are working

How spending behavior towards your loans and credit cards in the past

Interest rate for personal loan

The interest rate for the personal loan is higher than any other loans because personal loan is approved for the personal purposes without any collateral and guarantors. To compensate that bank puts higher interest and the risk they undertake to grant a personal loan. Lender is giving the just only on the basis of your income and your reputation.

Personal loan helps a lot in interest compared to credit card loans where interest from 36% to 45%  per annum it varies from on credit card to another. Personal loan is better than secured loan where you tend to lose

Personal loan details:

Personal loan Interest rate rages from 11.49 % to 20%

Processing fee: up to 2.5% of the loan sanctioned

Maximum loan amount: Rs. 25, 00,000

Loan Tenure range: 1 to 5 years


Documents needed for Personal loan

ID Proof:

PAN card, Voter’s ID card, Driving license

Address Proof:

Utility bills, Passport, Residence proof, voter’s ID

Income proof:

Last three months pay slip

Last six months bank statements

It returns for last 2 years

For more information on personal loan in Chennai , Axis Bank Personal Loan , HDFC bank Personal Loan get in touch with us.

Article Source


Nancy is an internet marketer and has been in this field for long time.

This author has published 2 articles so far.

Additional Articles From ‘Credit’