Majority of people don’t know there are two
types of personal loans, most of the people know about only unsecured loan and don't know about secured personal loans,and even most of us don’t know what documents they need for it and how much amount they will
get as per there current salary. This blog will help you understand unsecured
and secured personal loans and how to apply it.
Unsecured
Personal Loans
Most personal loans are unsecured loans, banks charge higher interest rates and
fees than they would for, say, an auto or a home loan, which is secured by your
car or house. An unsecured loan is not backed by collateral and intrest rates depend on your credit scores.
If credit score is better you will get better interest rates. Unsecured loans
you must have 680 – 700 score depending bank to bank. Unsecured loans amount
depends on your salaries EMI should be not more than 30% of your net salaries
credit in your account. Disbursement of the loan took 3-7 working days depending
upon bank to bank after deposit the all documents.
Secured Personal Loans
As I mentioned earlier, a secured
loan is one backed by collateral like a mortgage or car loan. And though most
personal loans are unsecured loans, some banks or credit unions will offer
personal loans backed by an asset like a savings account, FD, RD or maybe on PPF.
Maybe that FD has a high penalty for early withdrawal but you need the cash now
and in PPF your money is locked for 15 years. A secured loan is a way
to get access to that money without paying fees or selling the asset, though
you will be paying a monthly interest to the bank for the loan, and possibly
fees as well. In secured loan also good credit score but as bank is holding your
FD, RD or PPF account so you will get much easier than unsecured loans. You can
get more loan amount upto 50% on your net salaries. Disbursement of the loan took 3-5 working days
depending bank to bank after deposit the all documents.
Document Required for
Personal Loans
1) Customer KYC: - Pan card
and Adhar card/ Voter card/ Driving licence/ Passport
2)Proof of Income: - Salary
slip for previous 3 months and Form 16 for the previous 2 month.
3)Other Document: - Passport
size photo, Appointment Letter & Cancelled cheque.
Click here to know more and apply for a loan
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