About Personal Loan
A personal loan can be used for just about anything. Some lenders may ask what you plan to do with the money, but others will just want to be sure that you have the ability to pay it back. Though personal loans aren’t inexpensive, they can be a viable option in a variety of circumstances. Here’s how to decide if one is right for you.
- Personal loans can be used for almost any purpose.
- Unlike home mortgages and car loans, personal loans are usually not secured by collateral.
- Personal loans can be less expensive than credit cards and some other types of loans but more expensive than others.
When to Consider a Personal Loan
Before you opt for a personal loan, you’ll want to consider whether there may be less expensive ways you could borrow. Some acceptable reasons for choosing a personal loan are:
- You don’t have and couldn’t qualify for a low-interest credit card.
- The credit limits on your credit cards don’t meet your current borrowing needs.
- A personal loan is your least expensive borrowing option.
- You don’t have any collateral to offer.
You might also consider a personal loan if you need to borrow for a fairly short and well-defined period of time. Personal loans typically run from 12 to 60 months.3 So, for example, if you have a lump sum of money due to you in two years but not enough cash flow in the meantime, a two-year personal loan could be a way to bridge that gap.
Reminders while availing Personal Loans
When comparing personal loans online or off, pay close attention to the details. Specifically, consider the following:
- Interest rate
- Repayment terms
- Borrowing limits (minimum and maximum)
- Collateral requirements
Personal Loan Eligibility
The following factors are considered by lenders while going through your loan application. If you meet these criteria, consider yourself eligible for a personal loan.
Personal Loan EMI Calculator
Use annu advisors personal loan EMI calculator to calculate your EMI beforehand to plan and manage your finances in a better way. 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. Hit “Calculate” to check your EMI. The lowest applicable EMI per lakh for a tenure of 7 years at minimum applicable interest rate is Rs.1,599.
The result is followed by an amortization table, which will give you a detailed break-up of your repayment schedule.