A personal loan is a type of unsecured loan that helps to meet current financial needs. Generally there is no need to pledge any security or collateral while availing a personal loan. Here the lender usually provides with the flexibility to use the funds as per the need of the borrower. It can serve be the solution for managing travel costs and wedding expenses as well as the expenses of a medical emergency, home renovation, debt consolidation and others. But there’s also risk involved. But there is a risk associated with personal loan that is if the borrower default on loan, then the borrower could lose whatever it was that he put up for collateral.
There are few things that have to be kept in mind when a person is going to borrow personal loan that is:
- 1. First of all a person must Know how much is his need
If you are thinking of Variable rate loans, it will have lower interest rates, but it can end up costing you more since the rates can go up
We must also look at lender reviews since one might end up working with a lender that’s new and don’t know whether the lender is reliable and easy to work with or no. it is possible that borrower can apply for several loans at once to try to get the best offer but multiple applications can affect credit score.
Interest rate for personal loan may vary. Factors that affect personal loan interest are:
- 1. Creditworthiness of the borrower
- 2. Income source of the borrower
- 3. Bank details of the borrower
- 4. Nature of employment of the borrower
- 5. Age of the borrower is also an important factor
To avail the lowest interest rate one must try to improve credit score, avoid missing payments, keep an eye on various offers, compare interest rate and negotiate with the lender. Small things like processing fees, pre closure charges, customer service, loan disbursal time, discount, special offer and other hidden charges need to be discussed thoroughly before taking loan.
When a person is trying to avail a personal loan at a flat interest rate, the interest is calculated on the entire loan amount throughout the loan repayment period. On the other hand if a person avails a loan at a reducing interest rate/reducing balance rate structure, the interest is only calculated on the outstanding loan amount. Therefore, when a person makes a monthly repayment, the interest for the remainder of the loan tenure will be calculated on the outstanding loan balance.
There have been major changes that have occurred under the Modi Government. Reforms such as demonization, Unified Payment Interface (UPI), Encouragement to home buyers, tax norms changes, digital payments, transparency in interest rates has changed the face of Indian economy.
Talking about instant personal loan, pre-approved Personal Loan is an instant loan facility given to selected customers. In most cases this does not require any collateral or security. If a person has a good credit history, then the person can be eligible for an instant Personal Loan. The real meaning of an instant personal loan is only possible when it takes quick processing time and loan gets disbursed in seconds.
To apply for an instant personal loan first a person should try the bank where his such as a salary account is there for years. This is because a person can easily trust the bank and its people, it will be more convenient if a person has already taken other loans like home loan, car loan, etc, from the bank earlier because at that time as KYC process will be easier and faster.
As Ahmedabad is a city of industries and education institutions need for instant personal loan arise among the residents. Thus many banks, financial institutions and companies come forward to provide Instant personal loan in Ahmedabad. Instant personal loan in Gujarat is a trend. Gujarat being one of the developed states, people here do not hesitate to take risk, thus demand for Instant personal loan in Gujarat can never satiate.