Personal Loan in Ujjain – Check Eligibility & Apply Online
Personal loans are a good choice when you need extra money without sacrificing your savings. For many people today, personal loans are a secure way of obtaining quick capital without handing over any collateral in the form of gold, land, or other assets. But unfortunately, taking out a personal loan carries high interest rates. However, the practice is still prevalent, and several banks and non-banking financial companies (NBFCs) can be approached for the same.
What are personal loans?
A personal loan is a loan without collateral or security. Borrowers are assessed based on their credit history and ability to repay. Personal loans usually have a higher interest rate than secured loans, such as home equity loans. However, a lack of security makes this type of loan popular among the people of Ujjain.
Eligibility criteria for a personal loan in Ujjain
A personal loan in Ujjain is available to those who meet the eligibility criteria. These criteria include:
- A resident of India must be the borrower.
- Borrowers must be at least 21 years old.
- Income sources must be available to the borrower regularly.
- The borrower’s credit history must be favourable.
- To qualify for a loan, the borrower must have a bank account.
Documents required for a personal loan in Ujjain
If you want a personal loan in Ujjain, your banks or the NBFCs will require some essential documents. The following documents must be submitted:
- Proof of identity: passport, Aadhar card, PAN card, voter identification card, driver’s licence
- Address proof: passport, Aadhar card, voter identification card, driving license, utility bill
- Proof of income: salary slips, bank statements
- Photocopies of photographs
- A signature is required
Charges for a personal loan in Ujjain
Although no collateral or security is involved, personal loans in Ujjain are still subject to some charges. Taking a personal loan may come with the following fees:
- Processing fee: The bank charges this fee once for processing the loan application. Typically, it is between 1% and 2% of the loan amount.
- Prepayment charges: Banks charge prepayment fees when borrowers repay their loans early. Typically, the prices range from 2% to 4% of the loan amount.
- Late payment charges: Banks impose these fees when loans are not repaid on time. These fees are typically calculated at 2% of the loan’s outstanding balance.
- Cheque bounce charges: Banks charge these fees for checks that have been returned due to insufficient funds. They typically cost Rs. 500 per instance.
- Collateral: There is no requirement for any kind of security.
How to apply for a personal loan in Ujjain?
A personal loan application in Ujjain involves the following steps:
- Please find out more about the bank or lender of your choice by going to their website.
- Ensure that all required information is entered into the online application form.
- Ensure that all required documents are uploaded.
- Ensure that the loan has been approved.
- Your account will be credited once the loan has been approved.
- As per the repayment schedule, begin repaying the loan.
Interest rates on personal loans in Ujjain
In Ujjain, personal loans are available at an interest rate of 10.99% per year. Banks choose interest rates based on the borrower’s credit score, income, and repayment history.
Personal loans and EMIs
The EMI for a personal loan in Ujjain refers to the monthly payment the borrower is required to make towards the loan. The EMI is calculated based on the loan amount, the interest rate, and the duration.
Personal loan tenure in Ujjain
Ujjain offers personal loans with tenures ranging from 12 to 60 months. In this context, the term refers to the period during which the borrower must repay the loan.
Personal loan for self-employed residents of Ujjain
A self-employed individual in Ujjain can obtain a personal loan designed for them. However, a higher interest rate is usually associated with these loans than with traditional personal loans.
Personal loan for the salaried in Ujjain
The personal loan for salaried individuals in Ujjain is a loan that addresses their financial needs. This kind of personal loan has a lower interest rate than a regular loan.
Advantages of a personal loan in Ujjain
Personal loans in Ujjain offer the following benefits:
- Unlike secured loans, personal loans do not require collateral from the borrower.
- Online lenders, banks, and credit unions all offer personal loans.
- Taking a vacation, renovating a home, or funding a wedding can be done with a personal loan.
- Credit cards usually have higher interest rates than personal loans.
- Personal loan applicants know exactly how much they will have to pay each month because interest rates are fixed.
- Home and auto loans have longer repayment periods than personal loans.
- Personal loans can be repaid early without penalty.
Disadvantages of a personal loan in Ujjain
Personal loans in Ujjain have the following disadvantages:
- A collateral-backed loan is more expensive than a personal loan.
- Only some people can get a personal loan.
- Personal loans can be overspent for many reasons.
- A personal loan usually has a higher interest rate than a secured loan.
- Borrowers must repay the same amount each month regardless of changes in the interest rate.
- Home and auto loans have longer repayment periods than personal loans.
- Personal loans may be difficult for people with bad credit.
- Personal loans can be expensive with prepayment penalties.
Conclusion
Whether you are a business owner or a homeowner, you will see how easy it is to apply for a personal loan in Ujjain. Besides that, you will also be able to find out the pros and cons of the loan. This article aims to provide you with an understanding of personal loans and their requirements.
When in a fix, you should seek the assistance of a reputable financial company such as Piramal Finance if you live in Ujjain and want a personal loan shortly.