What is a Personal Cash Loan?

Personal Cash Loan is credit that is granted to the borrower for personal use. These loans are usually unsecured (no security or collateral required/asked) and is based solely on the borrower's integrity and ability to pay.

Who is eligible for a personal loan?

The eligibility criteria and their specific details may differ from banks to bank based on their perception of the risks associated with given out personal loans. However, nearly all banks divide the potential borrowers into three categories:

• Salaried individuals  • Self employed individuals  • Self employed professionals

Other factors which are taken into consideration are, age, residence, work experience, repayment capacity, past obligations and place of work.
What kinds of interest rates are offered on personal loans?

Almost all Personal Cash Loans are offered in:

• Fixed rate
• Floating rate
• Flat rate

Of the three, flat rates turn out to be the most expensive since the other two are calculated on a reducing balance basis.

What is the average interest rate for personal loans?

The interest rate for a personal loan is decided on the basis of your credit repayment capability and history. Depending on this, interest rates could be anywhere between 14% and 25%, depending on the financial institution.

What documents are required for personal loans?

Personal loans require the least number of documents, making it the fastest to be approved. Typically, financial institutions would require proof of identity, residence, income and also 3 to 6 months of your bank statements. Some banks also require guarantors and the same set of their documents.

How is a personal loan repaid? Is prepayment of a loan possible?

Normally, personal loans are offered between 6 months to 5 years. The loan is repaid with Equal Monthly Instalments. Prepayment is possible but will generally carry a significant prepayment charge. Good Luck Find Your Loan! Hope These Little Tips Help...