A personal loan is an amount that you can borrow from either a bank or a non-banking financial company to meet your particular needs. In the present day and age, the number of consumers opting for personal loans is proliferating, especially when it comes to making big-ticket purchases. An HDFC personal loan can aid an individual in making ends meet in terms of financing medical contingencies, funding higher education for children, purchasing a car, etc. However, there is a lot to know about personal loans before thinking about borrowing money from a bank.
Personal Loan: Definition And Purpose:
You can take personal loans from a non-banking financial company or a bank. They are unsecured loans that can be made to meet your individual needs. There are specific criteria which determine your eligibility for applying for a personal loan such as your income level, employment history, credit history, your capability to repay, etc. What sets this type of loan apart from other investments is the fact that it cannot be secured against an asset. Therefore, the lender is unable to auction anything that is owned by you.
Personal loans have higher interest rates because they are unsecured. The purpose of this loan, from the very name of it, is to meet your own needs. The bank does not monitor how you use the borrowed money. You can use it to finance anything from a vacation, marriage expenses, buy gadgets and appliances to spending on medical contingencies, higher education, etc.
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Eligibility Criteria Of Personal Loans:
The eligibility criteria for HDFC personal loan generally includes factors like your occupation, age, the place of residence, and your overall ability to repay the borrowed sum. To be eligible to apply for a personal loan, you must ensure that you have a regular source of income, whether, by profession, you are a business person, a salaried person, or a professional. Factors like your credit history, your place of employment, etc. also come into play when your applying for a personal loan.
Maximum Duration And Disbursal Period:
The tenure of personal range starts from 12 months or one year to about 60 months or five years. Longer or shorter tenures may be permitted depending on the case, but that is a rare occurrence. Typically, a personal loan is disbursed within 7 working days of applying for the loan. Once your loan is approved, you will either receive a draft or account payee cheque of the amount you had applied to borrow. The loaned amount may even be deposited into your savings account.
Personal Loan-Related Takeaways:
Before you apply for an HDFC personal loan, there are a few other things you should know. There is a minimum amount set by most lenders, amounting to Rs.30,000. The maximum amount that you can borrow is dependent on your monthly income and can vary depending on whether you are self-employed or salaried. Now you know quite a bit about personal loans, so you don’t have to worry the next time you need to borrow money!