What is Personal Loan? Know everything about Personal Loans in detail

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What is
Personal Loan? Know about Personal Loans in
everything detail
Irrespective of how efficiently you plan your
finances, sometimes, financial needs occur all of
a sudden and mostly when you least expect it. In
such cases, you either have to resort to
borrowing from friends, taking a loan or
spending from your credit card. Each option has
its advantages and drawback. Borrowing from
friends or relatives is uncertain might strain
relationships in the future. Hence, opting for a
personal loan or borrowing against your credit
card are two feasible options. Even from these,
personal loans fair better against credit card
borrowing by a wide margin. Hence, if you
require funds to fulfil a personal expense,
consolidate debt, ease liquidity crunch, pay for
a medical emergency or any other requirement, a
personal loan is your best financial recourse.
Learn more about the what is working
capital? What is a personal loan? A personal
loan is an unsecured loan that can help you meet
your current financial needs. The loan does not
require you to pledge any security or collateral
and is available with minimum documentation. The
lump sum from the personal loan can be used to
fulfil expenses, such as home renovations,
marriage expenses, medical emergencies, funeral
costs, etc. You can also use a personal loan to
consolidate different debts or ease a liquidity
crunch. Unlike a credit card, a personal loan
gives you a lump sum amount to use at once. You
pay back the amount plus interest in pre-agreed
monthly instalments over the loan tenure. Most
people prefer personal loans as an alternative
to credit cards because often personal loans have
lower interest rates than credit cards. Also,
you can use a personal loan amount to fulfil
nearly any kind of expense that is personal in
nature, such as some of your goals, needs,
emergencies, etc. Moreover, owing to the ease of
online personal loans and the increasing
competition, availing of a personal loan is
cheaper and more accessible than ever before. In
contrast to credit cards, personal loans are
available at a fixed rate of interest for any
amount you want to borrow. However, credit cards
are revolving debts, where you can borrow the
balance of the funds after spending per the
credit card limit. Things to keep in mind
about Personal Loan before applying Personal
Loans are one of the fastest-growing debt
categories in India. The unsecured nature,
freedom for the usage of funds, and the ease and
ready availability of Personal Loans have made
this type of debt a preferable choice for most
borrowers. However, as a borrower, you should
focus on knowing about Personal Loan related
specific things.
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• Here are some important things that you need to
  keep in mind about Personal Loan before applying
  for it
• Understand your funding needs Before you apply
  for a personal loan, it is essential to know how
  much you need. If you require funds for a medical
  emergency or for going on a vacation, the
  assessment in both cases will be different.
  Therefore, it is critical to understand your
  precise financial requirements and choose the
  personal loan amount accordingly.
• Minimum and maximum funding available The bank
  or lending financial institution assess your
  personal loan application and sanction the loan
  amount. The amount of personal loan you can
  avail of depends on your income level, profession
  and lenders assessment of your loan
  application. If you are a business owner or
  self-employed person, the personal loan amount
  will depend on your profit and loss statement.
  However, if you are a salaried individual, the
  lender will assess your monthly salary and credit
  history before sanctioning the personal loan.
  Apart from restricting the amount per your
  financial assessment, the lender also limits the
  maximum and minimum funding available. Hence, it
  is advisable to always check for the maximum and
  minimum personal loan funding available.
• Compare different interest rates Each lender
  levies a different interest rate on personal
  loans. The average interest rate for personal
  loans is between 10-26 per annum. The higher
  the interest rate, the higher will your personal
  loan repayment burden. Hence, before applying
  for a personal loan, check interest rates across
  different lenders and choose one
  that offers the minimum interest rate.
• Processing fee At the time of processing the
  personal loan, the lender bears some charges
  related to the administration. Even though the
  amount is small, it is not added to the personal
  loan amount and is levied individually in the
  form of a processing fee. Each lender charges a
  different processing fee. Hence, comparing the
  fee across lenders is wise and applying for a
  personal loan from a lender that charges the
  lowest processing fee.
• Pre-payment or foreclosure charges Lenders allow
  you to prepay or foreclose a personal loan after
  the expiry of a specific period. However, some
  lenders levy foreclosure charges on closing the
  loan before the pre-agreed tenure. It is wise to
  select a lender that charges no or
  minimum pre-payment or foreclosure charges.
• The credibility of loan provider When applying
  for a personal loan, choose a lender that enjoys
  a good reputation in the market. Assess the
  credibility and reliability of the loan provider
  before taking the personal loan. Choosing a
  credible lender will ensure you are secure
  against any legal or financial hassles that may
  arise during the loan term.
• Availability of digital and contactless
  processes Gone days when applying for a loan
  was cumbersome. Today, personal loans are
  available within a click and from the ease and
  comfort of your home. Hence, when assessing the
  personal loan lender, check if they offer a
  contactless and simple online application,
  approval and disbursal loan process. Facilities
  like online application, direct account
  transfer, mobile app, digital payments, etc.,
  assures comfort and ease.
• Minimal documentation To avail of a personal
  loan, you require to submit minimum documents,
  such as identity proof, income proof, residence
  proof, etc. Seek a lender that asks for a
  minimal hassle-free documentation process rather
  than a complicated one.
• Time of approval and disbursal Personal loans
  are meant to fulfil your sudden or unexpected
  financial needs. In most cases, you would require
  a personal loan sum

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• immediately or in some days. Therefore, assessing
  the approval time and disbursal of the personal
  loan is critical. Choose a lender that has a
  quick and easy approval and disbursement process
  of loan so that you can access the funds at the
  earliest possible.
• Convenient tenure The loan tenure has a
  significant impact on your monthly instalments.
  The longer the loan term, the lower would be the
  burden of the monthly instalments.
  Alternatively, the shorter the personal loan
  tenure, the higher will be the monthly
  instalments. Before applying for a personal
  loan, check the tenure specifications of the
  personal loan, and preferably, choose a longer
  loan term.
• Keep these factors in mind when selecting the
  personal loan lender and choosing the amount of
  loan. Selecting the right personal loan lender is
  critical to ensure your loan application,
  approval, disbursal, and repayment are easy and
  hassle-free.
• About Poonawalla Fincorp Personal Loan
• Poonawalla Fincorp understands your financial
  needs and aims to offer an instant solution to
  ease your financial worries. Our personal loan
  offering is customised and specially curated to
  suit your requirements - be it travel expenses,
  buying new electronic appliances at home,
  upgrading to the latest smartphone, covering
  medical emergencies, or more. Our unsecured
  personal loan with minimum documentation and
  easy eligibility assures that you fulfil all your
  aspirations.
• Coupled with industry-lowest interest rates,
  online application, flexible repayment terms and
  seamless support, our personal loan offering is
  just what you need in times of need. These
  unsecured loans are readily available, involve
  minimal documentation and processing, ensuring
  you get easy and ready access to funds to fulfil
  your financial requirements.
• Poonawalla Fincorp does not levy any restriction
  on the usage of funds from the personal loan. You
  can use the lump sum from your personal loan as
  you deem fit. Here are six cases where you could
  use a personal loan from Poonawalla Fincorp
• Buy new electronic appliances Money from
  personal loan can be used for buying new
  electronic equipment, such as refrigerator,
  washing machine, TV, AC, etc. A growing family or
  growing aspirations demand that appliances in
  the house are up-to-date and cater to the needs
  of everyone.
• Upgrade to the latest smartphone As consumers
  become more upwardly mobile, they prefer to have
  the latest smartphones in their hand. Also,
  smartphones have become like mini- computers /
  mini-laptops and a large chunk of office work is
  done on a good smartphone. Hence, consumers can
  avail of a personal loan to fulfil this need /
  desire.
• Sponsor wedding expenses In India, weddings are
  one of the heftiest financial investments. With
  each year, weddings are getting costlier. You can
  use a personal loan to finance your or your
  childrens wedding expenses and ensure the
  functions are done well.

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• Fulfil higher education expenses Education, in
  India or abroad, has become highly expensive.
  As a parent, you can take a personal loan to
  cover the higher education costs of your
  children.
• Accomplish travel goals Most often, people wait
  for sufficient funds to fulfil their dream of
  travel. However, life is uncertain and too short
  to be spent waiting for the right time. If
  travelling is your passion, you can use a
  personal loan to accomplish the goal.
• Purchase home appliances Home appliances like a
  fridge, air conditioner, washing machine,
  television, etc., is important but also
  significantly costly. You might have to save for
  several months and cut down other necessary
  expenditures to buy these home appliances.
  However, if you do not have funds on hand, a
  personal loan can provide you with much-needed
  financial support. You can use the funds from
  the loan to buy household appliances or
  electronic equipment immediately.
• Apart from these reasons, you can use a personal
  loan to cover funeral costs, moving expenses,
  pay credit card dues, buy a vehicle or an
  expensive gadget, etc. There is no restriction on
  the usage of personal loan money, so you have
  complete freedom to use the lump sum as you deem
  fit. You could even use the money for two or
  more two purposes, as per your financial
  requirement. Also, read about the types of
  personal loans in India.
• Interest rates and charges applicable
• At Poonawalla Fincorp, we understand the value of
  your dreams and aspiration and want to offer
  unending financial support to ensure you achieve
  what you desire. Our specialised and cost-
  effective personal loans are customised to suit
  your financial needs - be it as serious as a
  medical emergency or as trivial as buying the
  latest gadget. When you take a personal loan from
  Poonawalla Fincorp, we also disclose all
  relevant loan-related details, especially
  interest rates and other charges. We believe
  transparency is the foundation for long-term and
  healthy relationships.
• Here is the full disclosure of all interest rates
  and fees related to Poonawalla Fincorp personal
  loan

Particulars Figures
Interest rate Starting at 9.99 per annum. The exact interest rate depends on your loan eligibility, credit score, etc.
Pre-payment charges Zero pre-payment charges on foreclosing personal loan before the fixed tenure. However, the foreclosure should be from owned funds.
Loan processing charges Between 0 and 2 per profile plus taxes.
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Late payment penalty Rs. 500 bouncing charge/bounce plus taxes 2 penalty on the unpaid pending interest amount, if any.
Eligibility criteria At Poonawalla Fincorp, we
offer personal loans for all individuals so that
everyone gets a chance to fulfil their financial
needs. Our personal loan solutions are flexible
and quick, and hence, come to your aid in
minimum time. The eligibility criteria and
repayment terms of our personal loans are
designed to suit most individuals in need of
financial assistance. Eligibility criteria for
personal loans from Poonawalla Fincorp are
Criteria Requirement
Applicant age Minimum 22 years at the time of loan application and maximum 58 years at the time of loan maturity.
Work experience Minimum work experience of one year with at least two months of stability with the current employer
Income Minimum net salary of Rs. 20,000 per month
Employer category Applicant should be full time employed with a company, private or public limited corporation or LLP.
Citizenship Available only for Indian citizenship holders
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at-is- personal-loan.php