Check out the expert opinion for the most search personal loan queries

Personal loans are the financing arrangements between a borrower and a lender whereby the lender lends a specific sum of money to the borrower, without any security, against consideration in the form of interest. Personal loans can be availed for any reason like paying medical bills, education, house construction, business, debt consolidation, etc. Because of its unsecured nature, personal loan interest rates are usually higher than the secured loans.

If you are looking towards availing a personal loan, you can know the amount of EMI beforehand to plan your budget by using a personal loan EMI calculator. You just need to insert the loan amount, personal loan interest rate, and tenure. The personal loan EMI calculator will also show you the total amount of interest that you will have to pay over the principal amount borrowed.

Expert opinion for your personal loan queries

What are the benefits of personal loans?

Personal loans carry the following benefits:

Does CIBIL Score matter for availing of personal loans?

Yes. CIBIL Score matters for availing of personal loans. CIBIL score is an indicator of the creditworthiness of the borrower. Therefore, a good CIBIL score increases the chances of getting loan approval for the borrower. Also, it can help in reducing the interest rates. If you are regular with your payments, personal loans can be really helpful in improving your credit score.

Do personal loan interest offer tax benefits?

Loans such as home and business loans make most borrowers wonder whether the interest on the loan also offers tax benefits. The answer may disappoint you. Interest paid on personal loans is not deductible from your income, and hence, no taxation benefits are available.

What are the eligibility criteria for availing of a personal loan?

A personal loan may be subject to the following eligibility criteria, varying across different banks:

Bottom Line

Personal loans are unsecured, and therefore don’t need collateral. They are also useful for debt consolidation, whereby you can repay your multiple debts using a personal loan and then focus on single loan repayment. Moreover, personal loans get disbursed relatively quicker and don’t require much documentation, making it ideal for your sudden fund needs. If you’re looking for a personal loan, check the eligibility criteria here.

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