A personal loan is an unsecured loan. It states that you no need to produce any securities as you do for a vehicle or home loan. The underlying asset will be owed with the bank and no guarantors will be asked either. Some advantages in getting a personal loan include,
- Speedy clearance
- Minimum documentation is required
- The loan amount can be used for any purpose
- No monitoring of ‘end use’
How Much Can I Borrow From A Bank?
Before applying for a personal loan, check for a bank that offers attractive interest rate, EMI options, etc and the eligibility criteria and the documents to be produced. The loan eligibility criteria can differ from bank to bank. The important thing to be noted is your ability to repay the loan and the monthly installment should not exceed more than 30% to 40% of your salary.
How much can I borrow for a Car loan?
Having an own car is a dream of many. But the fact is all the people are not wealthy to buy a car. In such cases, a person will go for a car loan. Before applying for a car loan take a look around all the financial schemes offered by various banks. Decide a bank based on three important factors namely,
- § Allowance money scheme
- § Advance EMI’s scheme
- § Deposit payment scheme
However, at last the good interest rate of the loan is the thing that essentially matters. The amount of the loan you will get is based on,
- § Type of the car (standard/premium)
- § Cost of the automobile
- § Percentage financing offered
Most of the banks will provide 90% of the total amount as the car loan, whereas some banks may not offer beyond their limit. It is also based on the resale market value of the car. So by chance the bank can get a high resale value. You have to produce documents such as income proof, in which the bank will look for your income tax returns for last two years. And you may need to submit essential documents like tax returns, bank statements, salary slip, residence proof, etc. Once you produce all these things, your loan will be processed in 2 to 7 working days. The EMI cannot be altered once when you have signed the documents.
That’s it folks! This article on “How much can I borrow for a Personal loan?” is not a complete listing of what you can borrow. Hope you enjoyed the article. Don’t forget to drop a comment in the comment box.
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