Personal Loan calculator:
What is a Personal Loan?
A personal loan is an unsecured loan that you can take from a financial institution (bank or NBFC) to meet your personal needs. The lender offers the loan without any collateral from the borrower.
The rate of interest is higher than a secured loan (home, car etc.) as the perceived risk of default is higher. You can use the money and to meet any expenses that you may have. Through our partnerships with leading financial institutions, you can avail of personal loan up to Rs.25 lakh with instant approval and quick disbursal.
What can I use the Personal Loan for?
It can be used for any personal financial need that one may have -
• Home renovation
• Relocation expenses
• Down payment for new home
• Family vacation
• Medical emergencies
• Higher education
• Purchase of electronic gadgets
• Investing in a business
What is the eligibility criteria?
Generally, your age, occupation, employer name, income, repayment capacity, residence pin-code are considered as part of the eligibility criteria. You need to declare a regular source of income through salary, business or profession in order to qualify for a personal loan. Since the perceived risk of default is higher in a personal loan, banks check if there has been any default in your past credit history. The rate of interest can vary person to person.
How much can I borrow?
When lending, the bank or NBFC considers all loans being paid by you in terms of the outstanding amount and EMI paid before approving a fresh loan. The total EMI’s paid by you should not exceed 40-50% of your income. It usually depends on your income and varies based on whether you are salaried or self-employed. Repayments on existing loans are also considered when calculating the eligible loan amount. For the self-employed, the borrowing limit is determined by the profit earned in the latest Financial Year and considering any additional liabilities that the person may have.
How does Finwisely help me in deciding on which bank or financial institution should I borrow from?
At Finwisely, we consider the purpose of the loan, your repayment capacity, best possible interest rates, loan tenure and processing fees before we recommend a particular bank or institution.
What are the documents required to apply for a Personal Loan?
• Passport size photograph
• KYC documents (any one) - PAN, Driving license, Voter’s ID, Passport
• Income proof (any one) - Bank account statements for last three months, salary slips, recent ITR for self-employed
WHow do I get a good rate of interest on a Personal Loan?
• Maintain a good credit score of 750 and above
• Repay all your outstanding loans or credit card bills on time
• Avoid seeking credit/loans too frequently
• Trust Finwisely to get you the best rate prevailing at that point of time