Everybody occasionally needs more money for a variety of reasons. It could be used for personal expenses, children’s education, debt repayment, vacations, marriages, or funerals.
If you are interested in learning more about personal loans and are looking for one. You are definitely in the right place.
We get to see a range of personal loans which fall under mentioned categories
- Pension loan
- Personal loan for salaried
- Loans against securities
Let’s see what’s in it for us.
Now, let’s see how a pension loan will serve your financial needs.
Then, we will dive into other personal loans such as personal loans for salaried and loans against securities.
Pension loans are an option for retirees in need of immediate cash. There are banks in both the public and commercial sectors that offer it. The number of required documents is minimal and straightforward.
Pension loans are available for both treasury- and bank-paid pensions. Typically, interest rates fall between 9 and 11% annually.
Many central and state government retirees are served by the State Bank of India, the largest bank in the nation. The SBI Pension Loan is one of the most well-liked and alluring pension loan programs available today.
To know more click the links.
Personal loans for salaried
You can very simply obtain a personal loan against your salary if you are a salaried employee of a state or central government department.
It is a term loan with no security. Normal loan terms range from six months to six years, with annual interest rates between 9 and 12 per cent per annum.
As this loan will be secured by your paycheck, the documentation requirements for personal loans in this category are modest.
Your ITR and the salary slips from the previous six months may be requested by the bank. In addition to your office ID and standard KYC.
It is clear that public sector banks offer lower interest rates than private sector banks. Therefore, it is best to always be aware of the rates being offered. to check if any additional fees are involved.
The State Bank of India has a fantastic program in this category. SBI Xpress Credit is the name of it.
It is granted to state/central government personnel and also to many other private as well as government departments where a bank has a tie-up.
To know more click the links
Paperless online personal loan.
Nowadays, there are several loans and advances available online. You must have checked to see if you have access to online banking.
The features are available on almost every commercial bank’s Internet banking platform. Here, everything has been made so simple that going to the bank is not even necessary.
Another advantage is that, if you qualify for the loan, you can get it immediately and it is completely paperless.
There is also another type of personal that requires you to start the application process online but finally, you have to visit the bank and present the required paperwork in person.
Your application is processed once you have complied with all the requirements.
SBI offers both online Xpress credit and YONO PAPL. The pre-approved personal loan (YONO PAPL) scheme is a paperless type of credit that is accepted and paid out right away.
In contrast, online Xpress credit is a standard personal loan for which you must first submit an online application. In the end, you must deliver the document to your bank.
To know more about SBI YONO PAPL click here.
Loan against securities
Did you know that you might use your fixed deposit, gold sovereign bond, mutual fund, Kishan vikas patra, shares, etc. as collateral for a personal loan?
In actuality, you can get it, and at a very modest interest rate. Of all the personal loans that you can apply for, this will have the lowest interest rate.
The eligible amount is determined at the bank’s discretion. SBI used to provide 85% of the face value of the FD amount for overdrafts and 90% of the face value for demand loans.
For instance, you could receive a demand loan of ₹90000 or an overdraft facility of ₹85000 against a Fixed deposit of ₹1 lakh. Other banks also fall between 80% and 90%.
The interest rate is typically 1% higher than the FD rate.
Additionally, you are eligible for personal loans secured by your share up to a maximum of 20 lacs. in addition to your investments in mutual funds. However, when it comes to mutual funds, only a handful of them allow personal loans.
You can see the list of SBI-approved funds here.
A loan against security should always be chosen because it comes with several advantages. The sum of these advantages is as follows.
- Lowest interest rate amongst personal loans.
- Available both online and offline.
- You can get a Demand loan as well as an overdraft.
- Minimal documentation is needed. Online mode completely eliminates paper use.
- Neutralization of the disparity in interest.
To know more click the links
In conclusion, there are several personal loans available on the market. What matters most is who makes you the best offer, though.
You have a plethora of options; visit any commercial bank. Many offers will be made to you. Some banks will issue you a paperless sanction immediately.
It’s who you’ll be paying back over a five- or six-year period with interest. Make informed decisions and find incredibly effective ways to meet your financial needs.
Not the least, last. Things to watch out for-
- Rate of interest.
- Is there any hidden cost?
- Processing fee.
- Pre-payment charges.
- EMI overdue penalties.
- Foreclosure charges.