Personal loans are unsecured loans you can get without collateral for your personal expenses. It is for a fixed period and returned as Equated Monthly Installments(EMI). The EMI consists of interest-calculated components of the principal amount. You can use a personal loan for many purposes like home renovation, a wedding, or any other unplanned expenses.
The loan eligibility is based on criteria such as your profession, income, employment history, repayment capacity, and credit history. We are launching the most convenient Personal Loan in Bangalore soon.
What are the advantages of a Personal Loan?
- You can get a personal loan with minimal documentation, and the approval process is quick. Once the bank is convinced about your credibility, the loan will be disbursed in hours.
- Personal loans can be used for one-off, more considerable expenses. You can get your desired amount based on your profile, and the bank will offer you the flexibility to choose your loan tenure based on your capacity.
- Personal loans are unsecured loans, so you don’t have to provide security collateral.
- Personal loans offer low-interest rates compared to credit card interest.
- Easy to plan the budget as the personal loan EMI and tenure are fixed.
- Repaying your personal loan on time can boost your CIBIL score.
Disadvantages of Personal Loans
- Personal loans are not suitable for regular and small purchases.
- If you fail to make regular loan payments, it will adversely affect your credit scores and attract higher financial charges.
- Personal loans do not offer cashback or rewards.
- The interest rate can be higher compared to our Gold Loan from Home
What are the documents required for a Personal Loan?
To get our Personal Loans, you need to show your income proof through salary slips, bank statements, or ITR forms and identity & residency proof.
What is the Tax Benefit on Personal Loan? Generally, personal loans are not entitled to any tax benefits. Subject to certain terms and conditions, if the loan is utilized for asset purchase, home renovation, or business expansion, it may be considered for tax exemption.
One of the biggest advantages of a personal loan is that it does not need any collateral and the processing time is quick. Once you decide a personal loan is right for you, opt for a short-tenure loan that can save you on interest, and you will be able to settle the loan faster. Missing an EMI can be unfavorable to your CIBIL score, so limit the loan amount within your repaying capacity.
Chat on Whatsapp | Branch Locator | Email us - customercare@muthoot.com | Download App
