Frequently Asked Questions
- What factors affect your personal loan eligibility?
The important factors that affect your personal eligibility are:
- Your Income.
- Your Credit Score.
- Your Age
- Your Work Experience
- Your Current Liabilities.
- What factors affect your personal loan Interest Rates?
- Loan Type
- Loan amount/Loan Size.
- Loan Tenure’
- Your Credit Score: Higher the credit score, lower the interest rates.
- Your Credit History
- Employment Type
- Your Income: Higher the Income, Lower the Interest Rates.
- What factors affect the amount of a personal loan for which you may be approved?
- Your Credit Score
- Your Credit History
- Your Income
- Debt-to-income ratio: This help the lenders to determine how much a borrower would be able to repay and therefore decide upon the loan amount accordingly. Lenders generally seek borrowers with debt-to-income ratios of 36% or less.
- Collateral/Security: Whether the loan is backed by some collateral or security.
- Purpose of Loan
2. How much CIBIL Score is required to get a personal loan?
A CIBIL score has a range between 300 and 900. An ideal CIBIL score should be closer to 900. The closer it is, the better chances are for you to get better deals from lenders. For personal loan, the minimum CIBILScore required is 600 and above. There are some lenders who may approve on CIBIL Score less than 600 but at higher interest rates, lesser loan amount, fees and charges.
3. What is the maximum loan amount that I can get?
The maximum loan amount that lenders offer is usually up to Rs. 30 lakhs. But some lenders offer loan amount up to Rs. 50 Lakhs subject to various terms and conditions.
4. How long does it take to get a personal loan approved?
While online lenders may provide loan amount within 24-48 hours subject to their terms and conditions, usually the approval time after submission of loan application is three to seven working days and disbursement after approval is done within seven working days.
5. What happens if a personal loan is not paid?
Defaulting on a personal loan can severely impact your credit score. If you miss one or two EMI payments it will not make you a defaulter. However, if you fail to pay several EMIs on time your lender shall report you as a defaulter. If it so happens, it will become very difficult (nearly impossible) for you to take another loan in future. With that, the concerned lender may also take action against you.
6. Is the interest rate on personal loan flat or reducing?
Interest rates on personal loan can be both flat or reducing. In flat rate method, the interest rate is calculated on the principal amount of the loan. On the other hand, in the reducing interest rate, the interest rate is calculated only on the outstanding loan amount on monthly basis in the reducing balance rate method.
7. Do I need to provide any security or collateral to obtain a personal loan?
Since Personal loan are unsecured loan therefore you are not required to provide any security or collateral to avail your personal loan.
8. Can I get a top up on my existing personal loan?
Yes if you are already running a personal loan, you can go for a top up on it. You can obtain it either from your existing bank or lender at existing loan rate or transfer your loan to another bank.
9. How is the personal loan disbursed?
Once you get approved for a personal loan, the amount would get electronically transferred into the salary account that is mentioned on the salary slip at the time of documentation.
10. What is the minimum and maximum tenure available to repay my personal loan?
Most lenders offer loans for a minimum tenure of 1 year to maximum of 5 year duration.