A personal loan is meant for immediate needs or even use it to utilise it to purchase a gadget or pay for a vacation. A personal loan can be utilised to meet a variety of day-to-day and emergency demands. Note that banks provide lower loan rates to individuals with excellent credit score and interest rates on personal loans differ from one bank to the next.
Eligibility for personal loan
You need to be sure that you are eligible for a personal loan, before you consider applying for one. The eligibility criteria differed with each bank. So make sure to check the eligibility conditions. Below are some eligibility criteria for customers applying for a personal loan through
.
- You are a salaried doctor, or a CA, or an employee of any private limited company or a Public-Sector undertaking (including Central, State and Local bodies).
- You are within the age range of 21 to 60 years
- You have held a job for at least 2 years, with a minimum of 1 year with the current employer.
- Those who earn a minimum of 25,000 net income per month.
Partial prepayment towards personal loan
According to HSBC, “You can partially prepay up to a maximum 20% of the original loan disbursed amount per year, across 2 transactions in a year. (The year in such a case will be a period of 12 months beginning from your loan disbursal date). Partial prepayment can be initiated only after 12months of loan disbursal date (after 12 months of loan disbursal date for Balance Transfer cases); Any payment would attract prepayment charge as per terms detailed in your Personal Loan agreement.”
Prepayment rules vary depending on the bank so one should check about the prepayment facility and if any fees applicable.
According to the
website, “Any prepayment of EMIs in full or in part and closure of account before the end of term will attract the prepayment charges of 3% on prepaid amount. No prepayment/ foreclosure charges will be applicable if the account is closed from the proceeds of a new loan account opened under the same scheme.”
EMI
A loan’s EMI, or equated monthly instalments, is a crucial component. It is the amount you pay in periodic instalments to pay off your loan.
It’s critical to calculate your EMI and come up with a strategy for keeping it as low as feasible. Your EMI is determined by three variables:
- The amount of the loan
- The rate of interest
- The period of loan
