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What are Personal Loans all about
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Posted On :
Nov-25-2011
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Article Word Count :
519
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Personal loans are very popular today as individuals use them frequently to meet their needs. In a world full of luxury today people have many desires that need to be fulfilled for comfortable living.
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In the past few decades the middle class population of India has seen a drastic change in their lifestyle. They have been able to achieve the living standard they always wanted thanks to globalization and the subsequent hike in pay scales. However, the increase in salary could only take care of basic luxury items required to be purchased. The bigger dreams of the common man have been fulfilled by a simple solution called Personal Loan. This financial product plays a major role in the life of many individuals as it gives the much required financial assistance required to fulfil the various desires of life. Goals like taking a vacation abroad, designing your dream house, buying upgraded technology for business etc. seemed farfetched for the common man but with the advent of personal loans they all seem to be coming true.
Personal loan is a loan that is taken for one’s personal use. This kind of loan can be used for any legitimate reasons in any respect. This sort of loan comes as a retail service provided by a number of banks in India today. Reasons like marriage, business, home redecorating etc. are pretty popular when availing a personal loan. However, the reason could vary as per individual’s need. The sum of this sort of loan start from Rs. 50,000 – Rs. 30lacs and the term for reimbursing the loan ranges from 1 to 5 years typically.
There are two types of individual loans in India namely secure and unsecured. Each of them are created to help the consumer attain their goals with no hassles and ease of repayment. However, conditions for the two could vary. For e.g. an unsecured loan does not require you to submit documents of any sort and meets your needs well too. But your creditworthiness and income strength is taken into consideration by the bank before issuing the loan.
There are a number of benefits attached to personal loans that make it a hit with the consumers. A few are listed below –
• The unsecured personal loan does not need you to submit security or detailed documents to acquire a loan. Minimum documentation and nor securities or collateral will get the amount you need to meet your needs.
• This kind of loan is fast processing and can be achieved in a matter of few days as the formalities included are very few
• These loans help you get a bigger amount sanctioned to complete your needs
• You can avail loan of amounts ranging from Rs. 50,000 to Rs. 30lacs
• Also repayment is made convenient with flexible repayment tenure of 5 years and easy EMIs.
The sanction of these loans essentially includes a complete assessment of the person’s status i.e. if the interested individual is working or employed. Components like income of the person, person’s company status, individual’s credit and payment history, individual’s relationship with the bank where the loan is to be taken from and the individual’s bargaining capacities etc. are taken into consideration while sanctioning a loan.
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Article Source :
http://www.articleseen.com/Article_What are Personal Loans all about_110037.aspx
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Author Resource :
Author is an experienced writer on finance related issues like unsecured personal loan and holds keen interest in the trends of Indian finance industry. For best personal loans visit Bajaj Finserv Lending.
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Keywords :
personal loan, personal loan emi, interest rate on personal loan, personal loans in india, personal loan in bangalore, online,
Category :
Finance
:
Loans
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