How personal loans work
A personal loan is a type of installment loan in which you borrow a fixed amount of money for a predetermined period of time. The loan has to be paid back with interest, in the way of equated monthly installments (EMI) throughout the period of the loan.
Additionally, personal loans are unsecured loans. This means that you don’t need the backing of an asset as security or collateral while availing them.
Personal loan vs. credit card
Credit cards have a higher rate of interest on accumulated debt compared to a personal loan. The repayment period for a credit card is short, which means it’s easier to default and then incur heavy expenses in terms of interest. A personal loan, on the other hand, has a longer repayment period, making it a much more convenient option.
Thus, personal loans help you finance long-term expenses, and give you the option of consolidating your credit card or any other debt.
How hard is it to get a personal loan?
Personal loans are one of the easiest loans to get, because their application and approval processes are simple and quick. Nowadays, you can check your credit score and loan eligibility, as well as apply for the loan online.
With pre-approved offers from Bajaj Finserv, getting a personal loan is even more easier and quicker. Fulfil your financial needs by getting money in bank with just 1-step verification. You simply have to enter a few basic details and you can check your pre-approved loan offer.
Credit score needed to apply for a personal loan
Your credit score is one of the factors that determines your personal loan approval and conditions. You can get a personal loan even if you have a bad credit score, however, you will have to pay a much higher rate of interest for it.
Personal Loan eligibility and EMI calculator
To help you make an informed decision, Bajaj Finserv offers online calculators like the personal loan eligibility calculator and personal loan EMI calculator to help you determine how much loan you can afford to take. This will show you the consequences of your loan, in terms of interest rate and EMIs, which in turn can help with your financial planning.
Thus, if you’re looking to bridge the gap between your financial resources and your financial needs, getting a personal loan could be the way to go. Be sure to have good repayment strategy in place before you apply.
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