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Personal Loan is an unsecured loan in which customer does not need to pledge their property, asset, investment as a security to the bank. People can take this loan for any of their personal purposes i.e from debt consolidation to medical expenses. Furthermore, the procedure of the personal finance is very convenient and quick. This loan can be availed by any person whether the person is salaried, self employed and self employed professional. Nowadays, several financial institutions available in the market that provides this finance at the cheapest Interest Rates. The huge demand has attracted many players to start lending personal loans. Some of the popular players financing this loan are HDFC Bank, ICICI Bank, Axis Bank, SBI Bank, Standard Chartered Bank, Fullerton, DHFL and many more. These players provide personal loan at extremely lucrative rates that too with attractive offers. People must compare all lenders online to get the suitable deal which suits their requirements. The customer should be careful while availing the unsecured debt; the customer should check all aspects of the various financial institutions, before finalizing any lender. The borrower should select that lender that suits their requirement and even provide the best deal. The best deal means the lowest interest rate, low processing fee, free from prepayment charges, low EMI amount, high loan amount and maximum tenure. Bank must check the credit score of the customer before approving the personal loan . If the borrower has a poor credit history then, that person is nor eligible for getting the loan. On the other hand, if the borrower has god credit history then, the person can get a personal loan at the lowest interest rates. However; the banks normally charge 14-25% of the interest rate on a personal loan for the period of 1 to 5 years and for the loan amount of Rs.50000 to Rs.15 lacs. The customer has to submit various documents to the bank that are income proof, proof of bank statement, identity proof, and residence proof and employment details. The bank verifies these documents and then decides about the loan amount, interest rate and tenure. If the customer has an excellent credit report and profile then banks can even provide the personal loan at discounted interest rate, and if the person has low or poor credit score; the banks or financial institutions reject the loan application. That is why credit record is more important than anything else.
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