How Much a Personal Loan Can Cost You?

Posted on Monday, May 17th, 2021 | By IndusInd Bank

From covering your medical expenses to paying for your trip to an exotic destination, there is not much a personal loan can’t help you achieve. Easy to avail, personal finance can be your go-to in times of crises or even when it’s all hunky-dory.

Of course, there is a cost attached to borrowing money from a lender. How much will a personal loan cost you? What determines this number? Find out the answers to these questions in this article.

How Much Can Personal Finance Cost You?

Sure, this loan is easy to apply for and comes without pledging collateral, but what about its affordability? Does it come at a very high rate of interest? Are the eligibility criteria for the same relaxed? If these questions are lingering in your mind, keep reading.

The interest rate on your personal loan typically starts at around 10%. The final rate of approval is up to the lender and is decided by various factors.

However, you can make sure that personal finance does not cost you much by ensuring the following:

• Keep your CIBIL score above 700 points. A CIBIL or credit score is how a bank assesses your creditworthiness or ability to repay the loan. This scale ranges between 300 to 900 points. The higher you go, the more affordable your personal loan becomes. You can improve your CIBIL score by repaying your credit card bills on time and not defaulting on EMIs from previous loans. Since there is no collateral for this loan, the CIBIL score is a top factor for approval.
• If you earn a stable income, your chances for approval of personal finance at lower interest rates go up. Lenders are constantly assessing your capability of repaying the loan, and income stability is one sure-shot way of getting a loan on favourable terms.

Further, your personal loan EMI should not be more than 40% to 60% of your monthly income. The higher your EMI share, the higher the chances of defaulting. Besides, as a general rule of thumb, you should avoid seriously altering your lifestyle while repaying a personal loan.

Looking for a reliable lender to apply for personal finance? Well then, turn to IndusInd Bank.

Why Should I Get a Personal Loan from IndusInd Bank?

For starters, you don’t need to pledge collateral or guarantee to IndusInd bank when you apply for a personal loan. This way, your assets stay safe, and you receive financial support hassle-free. What’s more, you don’t need to specify your end purpose when applying for personal loan online or offline. Since personal finance can be used for any significant expense, its end purpose is flexible.

IndusInd Bank offers personal finance on flexible tenures that range between 1 to 5 years. You can negotiate a term within this range, and the total loan amount starts from Rs. 50,000 and goes up to Rs. 15 lakhs.

You can avail of this type of loan with minimal paperwork. We don’t ask for anything more than your proof of identity, address, and income. A stable income is strongly preferred when applying for a personal loan.

Eligibility Criteria for Personal Finance at IndusInd Bank

• Salaried Employees
  • Age Range: 21 to 60 years
  • Gross monthly income of Rs. 25,000
  • Employment history of two years
  • 1 year with the current employer
  • 1 year stay at the current residence

• Self-Employed
  • Age Range: 25 to 65 years
  • Annual Gross Income of Rs. 4.8 lakhs
  • Should be self-employed for 4 years

Documents Required for a Personal Loan Application at IndusInd Bank

• Salaried Employees
  • Identity Proof: Driving license, passport, voters ID, Aadhaar card, PAN card (any 1)
  • KYC documents: signature proof, residence proof
  • Income proof: ITR for the last three years. If unavailable, then Form 16. Last three months’ salary slips

• Self-Employed
  • Identity Proof: Driving license, passport, voters ID, Aadhaar card, PAN card (any 1)
  • KYC documents: signature proof, residence proof
  • Income proof: ITR for the last three years. Proof of business.

The Bottom Line

Are you looking for personal finance at a competitive rate of interest? Well, then your search ends at IndusInd Bank. We offer personal loans starting at just 10.49% for a loan amount ranging between Rs. 50,000 and Rs. 15,00,000.

Click here to apply for personal loan online today!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.