When it comes to the accomplishment of life goals, a majority of people rush to apply for a loan. Whether you wish to buy a new car or a house, a personal loan offers financial assistance to you in times of emergencies. Over the past few years, availing a personal loan has become comparatively easier. Additionally, personal loans online are considered as the most convenient solutions to fulfill all the financial needs instantly.
When you avail an instant personal loan, it is essential to learn everything about it beforehand. Although specific terminologies are complicated, they are a significant part of personal loans. Therefore, take a look at these personal loan terms mentioned below:
1. Repayment History
The most common term any person will come across while applying for any financial service is the repayment history. When you apply for a loan, the lender will run a check on your repayment history before granting a loan. Your repayment history involves a credit score or a CIBIL score. It is a value that decides your credit ranking, which is formed over the years.
2. Personal Loan Interest Rates
Interest rates are the amount charged by the personal loan companies in return for their loans. An individual pays it on a monthly basis proportionate to the payment that deducts the principal amount. However, these personal loan interest rates vary from one company to another.
3. Disbursal Amount
After your loan sanctions, you can obtain the required funds. The offered funds are ‘disbursal amount.’ Typically, the disbursal depends on the formalities like the document verification, credit score, and so forth. The personal loan application amount at Indiabulls Dhani ranges from Rs. 1,000 to Rs. 15 Lakhs.
4. Loan Approval Process
The lengthy process is the prime reason why a majority of buyers avoid the application for a personal loan. Therefore, the best way to avoid procrastination is by opting for personal loans online. The online process of application is secure as well as suitable for a maximum number of people. All you have to do is log in to the website, enter the loan amount, submit the relevant information, and obtain the disbursal amount.
5. Personal Loan Eligibility Criteria
For applying for a loan, the buyer must fulfill the requirement of the personal loan companies, if any. Failure to meet the criteria leads to the rejection of your loans from any financial institution.
6. Pre-Payment Fees
If an individual wishes to repay his loan before the tenure, then he must pay a specific sum of amount. Ideally, one must pay at least 5% of the amount before permanently closing the term of his personal loan. However, Indiabulls Dhani has no such pre-payment charges for the loan till Rs. 20,000.
7. Processing Fees
When a borrower takes a loan, the loan providers or the banks charge a fee at the time of loan processing.
8. Late Payment Fees
As the name suggests, the late payment fees are levied on those borrowers who do not repay their loans on time. It is due when the customers don’t have enough cash to cover their debts or forget to abide by the payment deadline. These charges vary from company to company. A customer is either charged with a flat rate or a percentage of his bill.
To sum up, a better understanding of all the terms work in favor of the applicant. Moreover, it guides the customers to make informed decisions in the long run. However, before employing personal loan, consider your needs and financial conditions. Further, make the final selection based on your preferences.