Personal Loan FAQs
A personal loan is offered by various banks in India at a higher interest rate than a secured loan due to higher risk involved as you are not asked for any collateral to ensure repayment. These loans allow you to repay them from 12 to 60 months. A personal loan may help you gain financing or pay off your bills but there a few things you should know before you take out a loan.
What are the risks associated with Personal Loan?
Risks associated with Personal Loan are:
- If you don't repay personal loan on time, the lender bank has the right to sue you and take you to court, as it is not backed by any security.
- Secondly, if you feel to pay off your personal loan too early i.e. before a certain date, there may be huge penalty.
- Thirdly, don't lure by a false advertising and enter into a fake loan agreement.
What is signature loan?
Signature loan is a form of unsecured loan which is offered by the banks based on borrower's credit score and ability to repay the loan from his/ her personal income. The interest rates on such loans are very high as compared to other form of loans.
What is the maximum amount for a personal loan?
It varies from bank to bank. It also depends upon following factors:
- Your credit score
- Your income
- Whether you maintain an account with the bank
When should I go for Personal Loan?
Whenever you have some important personal expenses but don't have enough money to pay them off, you can go for availing a Personal Loan.
Such expenses may include:
- A vacation abroad
- Household shifting
- Wedding in the family
- Payment of credit card bill
- Repayment of an existing loan
- Medical emergencies
It is possible to balance transfer of my personal loan to another bank?
Yes. If the bank from where you have taken personal loan is charging higher interest than other banks then you can go for balance transfer of your personal loan and thereby reduce your monthly burden.
How can I apply for personal loan?
If you are in search of availing personal loan, you can apply the same in following ways: By directly visiting the bank branch
By contacting and meeting the sales representative of bank
Through a loan agent
Apply online at bank's website
Can I get top up on personal loan?
Yes, if this facility is offered by the bank from where you have taken the loan. It varies from bank to bank.
What is the maximum tenure of personal loan?
The tenure of the personal loan varies from bank to bank. Usually, such types of loans are offered for a relatively shorter period due to risk involved in them as no security is taken by the banks against such loans. The tenure for the personal loan remains between 12 months to 60 months in most of the cases.
Can I add the name of my spouse as joint holder for personal loan?
Yes, you can. In this way, your eligibility will increase due to addition of spouse's income to your income and you can avail more amount as personal loan.
Other Bank Personal Loan FAQs
Check more banks personal loan faqs