Personal Finance In India

A personal loan is one of the types of finances which is lent to the individuals with insufficient credit history. Since such type of finance doesn't have necessary requirement of collateral submission, the cost of the finance is usually higher in terms of a higher rate of interest. Hence this sort of finance has its expensive payout as the borrower has to pay off higher EMI on account of higher interest rate.

Personal loan is not bad at all given that the fast and quickest lending. If this finance is compared with other ones such as home loan and car loans, we come to the conclusion that this one is comparatively faster on several grounds. Firstly, these loans are of secured by nature while personal finance is not. Secondly, these secured finances have different terms and conditions including the ones related to documentation. But if you borrow personal finance, there is no much paper works and much documentation.

Another thing to understand about the feature of personal loan is, it is very easy to borrow as presence of collateral and security requirements is not there. Hence when it comes to borrowing the finance, the time taken from completion of the process of documentation and other formalities is completed very fast. Usually personal finance is lent within 24 hours in a day. Some banks like HDFC Bank Personal Loan can offer the finance in an hour.

Though this sort of finance is unsecured, a borrower has to understand that it is must to pay off the finance within the due date. This means, you will be supposed to pay off your EMI to the lender as per the terms and conditions involved. Failure in the payment of the finance will make you default borrower that will subsequently cost you dear (usually you will have poor credit history). Hence whether you take the finance or not, it is must of you to ensure that amortization is done as per the terms considered.

Personal finance is used to sort out needs such as purchase of TV, refrigerator, computer system and other consumable items. Moreover the finance can be used to purchase a car. You can also take this finance to pay off huge pending credit card dues of yours. Though Personal Loan Interest Rate, especially to the bad credit borrowers, is very higher, you can escape this if you give collateral against the finance.

A personal loan is one of the types of finances which is lent to the individuals with insufficient credit history. Since such type of finance doesn't have necessary requirement of collateral submission, the cost of the finance is usually higher in terms of a higher rate of interest.