Taking a personal loan nowadays is just a click away. It can come handy during the times of need – be it a medical emergency, child education, vacation, house refurbhishing, or any other exigency. When you are facing a paucity of funds, your banks come as a great help in providing personal loans. Unlike home loans, personal loans are very expensive but easy to get. Every bank has a different rate of interest for personal loans. So, once a decision on seeking a personal loan is made, there are certain things which are considered once you approach a bank. We take a look at 5 things that you must know before taking a personal loan
We take a look at 5 things that you must know before taking a personal loan:
1. Income: Whether you are employed or unemployed, the bank will consider your income to give you a personal loan. Every bank has a certain minimum monthly income range requirement. The bank will also weigh whether your income can repay the personal loan sought.
2. CIBIL score: Another important criteria that is considered during a personal loan is the CIBIL score. CIBIL score holds importance as the number assigned to each person representing his/her creditworthiness is considered by the banks while deciding whether a personal loan application should be approved or not. This number in CIBIL score is assigned on the basis of a customers’ financial behaviour, which is assigned through the information provided by the banks and other financial institutions. Financial behaviour includes dues, credit card payments, loans repayment and other kind of debts.
3. Relation with the bank: This is another criteria that holds significance while seeking a loan from your bank. The customer relation with the bank plays a pivotal role in convincing the lender to provide one a loan.
4. Employment: The banks are looking at stability factor while giving you a personal loan along with the company where one is employed. Employability in a firm and smooth company increases chances of getting a loan
5. Other personal liability: Banks also take into consideration your other liability – like pending dues, loans from friend or known person.