A bank loan in the context of personal loans is simply a type of unsecured loan that has been availed from a banking establishment, public or private. A great multitude of people take such personal bank loans in India to meet their immediate financial needs, such as to pay for some medical expenses, children’s higher education, home renovation etc.
This type of loan is provided primarily on the basis of some key criteria including the income level of the borrower, his/her employment history, credit score, repayment capacity and more. As it is unsecured in nature, the interest rate charged is comparatively higher than secured loans like home loan, car loan etc. The borrower is free to use the loan amount any which way s/he likes. The loan amount normally gets disbursed within 7 working days of the loan application, and the quantum of the loan is such that the EMI doesn’t work out to be more than 50% of the borrower’s monthly income. The tenure varies from 12 to 60 months.
Such private bank loans are bringing about a gradual change in India’s lending industry because of several different reasons. Let’s go over some of them below:
Ease of access – It has become extremely easy for borrowers to apply for a personal bank loan in India today. Almost all the public and private banks offer these loans to interested borrowers, at attractive rates. In some cases they even sweeten the deal with discounts and perks.
Comparatively quicker processing time – Although the regular personal loans aren’t as quickly disbursed as instant loans, their processing time is certainly faster than that of other loan products. As they are unsecured in nature, the disbursal is usually made within 24 to 72 hours of the loan application.
No collateral – This type of personal loan is unsecured in nature, and hence doesn’t require any collateral from the borrower. The only factor considered is the borrower’s repayment capacity within the loan’s tenure.
Minimum documentation – The need for minimum documents is another reason why these loans have become extremely popular in India’s lending space. The lenders don’t need to verify any assets, as against other loan types like home loans. All that the applicants need to submit is their address proof, income proof and proof of identity.
Some other notable factors that contribute to their growing popularity include their easy availability on the Internet, freedom to use them for any purpose, flexible repayment options and how they are proving useful in debt consolidation.
GoSahi is the platform you must visit if you’re keen on comparing the best bank loan offers from reputed public as well as private banking establishments. The portal only requires you to input certain basic details regarding your current income, loan amount, tenure etc. and returns best loan offers extended by banks all over the country. Not just that, the experts at GoSahi offer off-line assistance too and ensure that the loan is credited into your account within the promised timeframe.