Personal Loan for a Family During Covid

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Many people have had their salaries cut in the last year due to bad business results, which the global coronavirus epidemic has impacted. Switching to a lower pay scale can be a complex process.  Even to finance the most basic needs, planning of borrowing as a route out is only expected in such a situation. People have been contacted by lenders providing personal loans. As the nationwide lockdown continues, some of India’s leading banks have launched special schemes to assist businesses and individuals in dealing with emergency expenses arising from the ongoing COVID-19 crisis. If you have a decent credit score and have been a good borrower, the loan would be easier to obtain. Taking out a personal loan makes sense in most cases when it is the least affordable alternative, and the budget is not in jeopardy. A personal loan for discretionary expenditures, such as a holiday, on the other hand, maybe costly and unnecessary. A personal loan to pay rent, electricity, or medical expenses is an expensive choice that has to be considered after all other alternatives such as loans from friends and family, crowd-funding, and so on have been exhausted. Some lenders have increased their income and credit score criteria due to the global crisis, making it harder for borrowers to apply for a loan or get a low-interest rate.

Bank provides a variety of loans tailored specifically for its clients. The Bank personal loan may be used for a variety of purposes. As one of India’s largest financial institutions, it aims to provide instant financial solutions to loan seekers. Since the loans can be obtained without committing any protection to the bank, they are referred to as unsecured personal loans. Personal loans of about Rs. 25 lakh are available from Bank with little paperwork and a term of 12 to 60 months. Bank offers various personal loans, including Wedding Loans, Holiday Loans, Home Renovation Loans, Fresher Funding, NRI Personal loans, etc., depending on your needs. As of today, Bank Personal loan interest rate range from 10.50 percent to 22.00 percent, with the lowest rates available to current bank customers with a high CIBIL score and those employed by a reputable company with a long job history. With impact from 04 May 2021, the lowest rate on Bank has been reduced from 11.25 percent. Personal loan rates have dropped by 0.75 percent from their previous high of 11.25 percent. Unique schemes for security, armed forces, and government employees are also available through Bank. The interest rate on personal loans for government and defense workers differs from that of private salaried employees. If you are choosing this personal loan service during the covid situation you may get things serviced on a quick basis.

Features

  • Over the entire duration of the loan, the interest rate will be fixed.
  • Repayment terms that are flexible are available.
  • Interest Rates that are both affordable and flexible.
  • Loan Approval in a fast way.
  • 100% Transparency and a Simple Documentation Process
  • A maximum loan of Rs. 25 lakhs is available.
  • Repayment choices vary from one to five years.
  • There are no hidden fees, and the processing fee is low.
  • Fast disbursement of funds in your account issued in as little as two days.

Documents Required

  • Application for a loan has to be completed.
  • 2 Photos of Passport Size
  • A copy of the taxpayer Identification Number (PAN) 
  • Driving license, PAN, Passport, Voter ID, and Aadhaar Card are acceptable forms of identification.
  • Residential Address Proof such as Rent Agreement/Passport/Leave and License/Utility Bill (upto three months old)
  • Two years’ Form 16, 3 months’ financial documents, and three months’ bank statement showing salary credit and any EMI debit are required.

Interest Rates and EMI

A loan amount of about Rs.5 lakh at an interest rate of 13% per annum

  • For a one-year loan tenure, the EMI is Rs. 44,659
  • For a two-year loan tenure, the EMI is Rs. 23,771
  • For a three-year loan tenure, the EMI is Rs. 16,847
  • For a four-year loan tenure, the EMI is Rs. 13,414
  • For a five-year loan tenure, the EMI is Rs. 11,377

A loan amount of about Rs.10 lakh at an interest rate of 15% per annum

  • For a one-year loan tenure, the EMI is Rs. 90,259
  • For a two-year loan tenure, the EMI is Rs. 48,487
  • For a three-year loan tenure, the EMI is Rs. 34,666
  • For a four-year loan tenure, the EMI is Rs. 27,831
  • For a five-year loan tenure, the EMI is Rs. 23,790

A loan amount of about Rs.20 lakh at an interest rate of 11.25% per annum

  • For a one-year loan tenure, the EMI is Rs. 1.76 lakh
  • For a two-year loan tenure, the EMI is Rs. 93,448
  • For a three-year loan tenure, the EMI is Rs. 65,715
  • For a four-year loan tenure, the EMI is Rs. 51,935
  • For a five-year loan tenure, the EMI is Rs. 43,735

Important Factors

Some critical factors to consider when applying for a personal loan with Bank are mentioned below:

  • It is always a wise idea to review your credit score when applying for a personal loan. A good credit score enhances the likelihood of getting a personal loan approved and allows you to get a personal loan with better terms.
  • Before deciding on a lender, it’s a good idea to compare the cost of a personal loan (interest rate plus all other fees and charges) offered by different lenders.
  • Always borrow just what you require and can afford to repay. Avoid taking out a loan only because you are qualifying for a larger loan. It would only increase your interest costs and have no long-term benefits.
  • Applying for personal loans from several lenders at the same time is not a good idea. Your credit can suffer as a result of this.

Conclusion

The status of an ICICI personal loan can be verified by going to the bank’s website. To check the live status of your loan application, enter your mobile phone, application number, and date of birth there. You can increase your Personal Loan Eligibility and loan sum by including your spouse’s salary. You must be at least 23 years old at the time of loan approval and 58 years old during the time of loan maturity to qualify for a personal loan. Part prepayment is not permitted at Bank; however, for complete prepayment or foreclosure, you must send a properly signed request letter to the bank, along with your PAN card if paying by cash. Prepaying your personal loan with a demand draft or a check is also an alternative. You may apply for a personal loan from Bank either in person at a branch or online at their website. Since the personal loan is considered an unsecured loan, Bank does not need any collateral or security. When a personal loan borrower has paid at least 12 EMIs, a balance transfer facility is available. Exact information on the balance due, including the amount, interest rate, and fees of a balance transfer, may vary according to an individual profile.

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