A personal loan is a financial instrument that allows you to get funds that you can use for multiple purposes. When you choose a Personal Loan, you are provided with a certain amount of cash at a fixed personal loan rate of interest and can return it over a set period of time.
A personal loan in Chandigarh might help you meet your financial obligations quickly. As this loan is unsecured, their interest rates may be slightly higher than those of other types of loans. Continue reading to learn more about personal loans and personal loan interest rates.
Why Should You Apply for a Personal Loan?
There are numerous reasons why you should apply for a personal loan. Here are a few points that are good enough to convince you to apply for a personal loan in Chandigarh.
- They are easy to apply
- You can get funds instantly post approval of the loan
- Personal loans offer flexible repayment tenure
- They require minimal documentation
- You can get up to ₹5 lacs
- Borrowers get the freedom to use the money in any way they see fit because there are no restrictions.
What Is the Personal Loan Rate of Interest?
When you apply for a personal loan, you will see that your lender specifies a percentage figure. That percentage figure is your loan rate of interest. The personal loan rate of interest determines the amount you are supposed to pay along with your EMI on the date of repayment. This rate of interest differs from lender to lender. We have discussed the reason for this disparity in the next section.
What Are the Factors Affecting the Rate of Interest on a Personal Loan?
When you are doing your research on personal loan interest rates you will see that many financial organizations will offer you different interest rates. Doing your research is a good option as it will help you get the best personal loan rate of interest. There are several factors that affect your personal loan rate of interest. Here is detailed information on all of them:
- Income: Since a personal loan is unsecured, financial institutions will base their decision on your existing income. The greater your income, the more likely you are to get approved for a loan with a reasonable interest rate.
- Company’s status: Lenders categorize firms into several groups, and these classifications influence your company’s position. If your firm fits into a higher category, you can easily acquire a low-rate personal loan.
- Relations with the lending institution: The nature of your relationship with your bank is also significant in receiving the highest interest rate on a personal loan. To secure a personal loan, banks often provide special interest rate plans to their loyal clients, particularly those who have credit cards or bank accounts.
- Credit and payment history: If you have applied for a personal loan and your payment history is weak, it can be unfavorable for your loan application. Many lenders will not evaluate your profile if you have a bad credit history. In simple terms, the higher your CIBIL score, the better it is for your loan application approval.
How Can You Apply for a Personal Loan?
You can apply for a personal loan in Chandigarh by following a few simple steps:
- Open your browser and visit your lender’s website
- Check your eligibility before applying for the loan
- Click on apply now and surf to the application page
- Fill in all the necessary information there.
- Upload all the necessary documents
- Your documents and application form will be put under review
- Once your documents are approved your loan amount will be deposited in your provided bank account
Is Everyone Eligible to Apply for a Personal Loan?
Not everyone is eligible to apply for a personal loan to find out if you can apply for it or not, check the eligibility criteria given below:
- You must have Indian citizenship
- Your age should fall between 21 to 58
- Both salaried and self-employed individuals can apply for this loan
- You must earn ₹15,000 every month
- As a salaried person, you must have a minimum of six months of work experience
- For self-employed individuals, they must have two years of experience in their current firm
When you apply for a personal loan in Chandigarh, you should make sure that you check the eligibility criteria and fill all the information in the application correctly. Also, don’t forget to do your research on personal loan rates of interest provided by different lenders. This research will help you obtain a personal loan at the lowest interest rates.