Home » Personal Loan Frequently Asked Questions and Their Answers

Personal Loan Frequently Asked Questions and Their Answers

by Uneeb Khan
Personal Loan

You may have planned to go on a foreign trip to Europe, Australia, or New Zealand but put it off due to a lack of money. Great goals need big expenses, which may be financially tough at times.

In such cases, a personal loan might assist us in realizing our ambitions. A personal loan can be used to pay for medical treatment, a wedding, home renovations, relocation, and even debt consolidation.

A personal loan is an unsecured loan provided to consumers by banks and non-banking financial institutions (NBFCs) to meet their personal requirements.

Personal loans may also be secured if security is provided. The lender’s loan amount is repaid in regular installments with interest. On-time loan repayment improves credit scores and increases the likelihood of future borrowing. 

At Vintage Finance, you will be provided with complete information on personal loans, vehicle loans, property loans, etc.

What Are the Minimum and Maximum Loans Offered for Personal Loans?

Personal loan minimum and maximum borrowing amounts differ from bank to bank. Personal loan providers in Delhi are available from such lenders for as little as Rs 15,000 and as much as Rs 40 lakh. The applicant’s credit history, income, and ability to repay the loan all play a role in determining the loan amount.

What Is the Interest Rate on a Personal Loan?

Interest rates vary from 10% to 35%, and sometimes much more. The credit score of the borrower, the amount of the loan, and the length of the loan are just a few factors that affect the interest rate, which varies depending on the lender.

How Will the Loan Be Repaid?

Personal loans are repaid via EMIs or Equated Monthly Instalments. It is made up of the main basis of the loan as well as the interest. The money is taken directly out of the customer’s bank account.

It is also possible to deduct it immediately from the customer’s debit card. Borrowers must submit the information needed about the debit card from which the EMI payment will be debited on the due date.

What Documents Are Necessary for a Personal Loan?

Lenders need certain supporting documents from applicants when reviewing loan applications. Identity verification (both picture ID and age proof), residency proof, and the completed application form are all required.

Salaried employees must also produce wage slips from the previous three months as well as bank statements from the previous six months. Self-employed people must furnish three years of income tax returns as well as three years of audited balance sheets and profit and loss statements.

Can The Loan Be Prepaid?

Most personal loan providers enable borrowers to return their loan before the end of the agreed-upon term, but consumers must notify the bank before beginning the pre-payment procedure. Some lenders may impose prepayment penalties. It might be either a fixed amount or a percentage of the overall loan amount.

How Quickly Can I Receive a Personal Loan?

Lenders usually need 2–5 working days to disburse a personal loan once borrowers submit the complete set of papers. However, keep in mind that approval and payment are at the discretion of the bank. It is also determined by the borrower’s eligibility and other reasons.

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