As the name says, a Personal Loan means that any loan or credit taken from the bank by the consumers for any personal reasons. There may be many personal reasons for which a personal loan is being taken. These loans again cannot be just taken away lightly, but these are credited once the consumer has qualified all the possible requisites for obtaining a personal loan.
Thus, in short you can say that a personal loan is not granted as easily as the name suggests or for any random reason, you cannot obtain a personal loan.
Personal loans are the credit amount you obtain from the bank, only if approved, for your own personal assistance. For this you need to mortgage certain requirements or keep a certain amount as the fixed deposit to repay the loan. These are installment loans which can be made available only if you’re approved of it.
Once the loan is approved or credited to your account, you are required to repay the loan in fixed monthly installments. These loans are also called as the unsecured loans because they are basically for personal reasons and not for any specific reason. Personal loans are credited against FDR (Fixed Deposits Returns) and ITR (Income Tax Returns). Basically, a personal loan can be taken for any personal reason you want.
One thing which needs to be kept in mind while getting a personal loan is that you should have a decent amount of fixed deposits in order to repay the monthly installments of the creditor. If you have a big task for which you are taking the personal loan, you really need to have a good score of repaying the amount plus the interest accumulated on it.
Reasons Why You Need a Personal Loans
- buying a property
- pay for medical expenses
- financial setup
- make high-end purchases
- home improvement or renovation
- blocking the limit of the credit card
- Making household purchases like air conditioner, refrigerator,
- To repay the consolidated bad debts amount by way of auction
When can You Get Personal Loans?
A thought, which comes to your mind, is to expand your dream into true makes away of Personal Loan. At that point of time by qualifying all the requirements depending on the circumstances of the case or individual, you may find it the right time to get a personal loan.
It is something, which is very relevant to take a personal loan is that you should keep in mind about your particular requirements, which is for the interest of your own or for the requirement, which you need. It is rather advisable not to take a personal loan for very personal reasons like family vacation, wedding or any other ceremony. Reason being that the rate of interest for such unsecured loans can be as high as 15%.
It is advisable that you should only acquire a personal loan if you have huge expenses. It is advisable that you should not take an unsecured loan if there is little or no requirement.