Freecharge's video: How to get a Personal Loan Eligibility Interest Rates EMI and Tips Hindi Freecharge

In this video, we will tell you everything about personal loans from what they are, how they work, and everything else that you need to keep in mind if opting for a personal loan. What is a Personal Loan? A personal loan is nothing but financial aid offered by lending institutions to people who are in need of money to meet their urgent needs. A personal loan can be used for multiple purposes like planning travel. buying gadgets, funding for your education, medical expenses, splurging on weddings, and many other purposes. The borrower goes for a personal loan with a promise to pay back the lender along with fixed interest every month. The personal loan repayment period is pre-fixed as per the customer’s convenience. Similar to other kinds of loans, you have to pay the loan amount to the lender on an equated monthly installment (EMI) basis. Now, before approving the personal loan, the lending authority checks certain details of the borrower like their profession, income earning, credit history, loans taken in the past, credit score, repayment ability, etc. The personal loan repayment period typically ranges between 12 months to 84 months. If you fail to repay the loan by the due date, you’ll be considered a defaulter. Eventually, this will affect your credit score as well. How Do Personal Loans Work? The first step you have to do is to figure out what’s your need and the urgency of taking a personal loan. Next, check your eligibility criteria and see whether you are meeting their terms and conditions. Anyone between the age of 21 to 60 years is eligible to get this loan. After meeting the criteria, you can contact your respective bank or apply online at numerous non-banking financial institutions or Lending/Fintech apps by submitting the necessary documents. Post-furnishing all the documents with the lender or e-verification, your credibility will be examined prior to approving the loan. Once everything is verified and approved, the lender sanctions the loan and transfers the amount to your account. Moreover, collateral-related documents are submitted to the lending authority only if it’s a secured personal loans. Otherwise, the borrower doesn’t need to submit any such documents to the lender. The loan repayment is done on an equated monthly installment (EMI) basis. However, the rate of interest, the time period, and the loan amount vary from person to person. Other than that, the documentation and paperwork are not as tedious as when compared to gold loans or home loans. Plus, the loan disbursement happens in no time, just after a few hours of approval or even instantly in the case of certain online lenders. Also, you have the leeway to choose the loan repayment period. So, you can opt for the ideal loan term by keeping your monthly earnings and savings in mind. Personal Loans Vs. Other Lending Options Unlike before, there are myriad lending options in the evolving digital and financial space in the current era. Though personal loans are as good as any other loans, there are several other alternatives to this option as well. Some of the lending options other than personal loans are credit cards, Buy now pay later, peer-to-peer loans, personal line of credit, small business loans, etc. Impact On Your Credit Scores One of the easiest ways to audit your ability to pay your debts is by checking your credit scores. This info gives the lenders the assessment of the credit and the default risk. Your credit scores are inspected in 2 ways - a hard inquiry and a soft inquiry. The former type of credit check is where the customer grants permission to the lender to verify the credit details as a process of a loan application. When it comes to the latter type of credit check, it doesn’t affect or impact your credit score. Interest Rates and Other Fees Generally, interest rates differ from loan to loan and lender to lender. There are fixed interest rates and variable interest rates. In some cases, a customer can opt for both or can change as per their requirements accordingly. The interest rates are usually a function of the loan amount, tenure of the loan, and the risk profile of the borrower. Long tenure loans mean that you pay interest for a longer time as compared to short tenure loans and hence it is recommended to not stretch loan repayment tenure unnecessarily. Some lenders also levy processing fees, and it ranges anywhere between 1% to 6% respectively. Also, some lenders provide an option of prepayment of the loan amount which can help you lower the interest you pay. Some lenders charge prepayment charges. 👉Download Freecharge App: https://frch.in/k9HEcmfbjrb 👉Visit us: https://www.freecharge.in 👉Follow us on: Facebook: https://www.facebook.com/Freecharge Twitter: https://twitter.com/Freecharge Instagram: https://www.instagram.com/freechargeofficial/ LinkedIn: https://www.linkedin.com/company/freecharge-in/