Financial stress is the emotional tension arising from a poor financial situation. Experiencing financial stress for prolonged periods has a terrible impact on your mental and physical well-being. Hence, try getting relief from the financial stress as soon as possible for yourself and your loved ones. An effective way to get rid of financial stress is to identify its cause and find a solution.
Suppose the cause of your financial stress is multiple Credit Card payments. Making multiple repayments is overwhelming each month, and the increasing interest liability further adds to your trouble. A way to tackle this is debt consolidation by applying for a Personal Loan. This lets you close multiple Credit Card repayments and focus on one Loan repayment. This saves you from feeling overwhelmed and bearing unnecessary interest liability.
You can apply for a Personal Loan with any leading bank. But before you do so, here are some details you should be aware of:
Hassle-free procedure
The procedure to apply for a Personal Loan is simple. You need to fill out the Loan application form and submit a set of documents. Interestingly, you need not visit the bank to do so. You can apply for a Personal Loan using your fingertips by simply logging on to the bank's online platforms.
Loan amount
Leading banks provide Personal Loans up to Rs. 40 lakh. Since the Personal Loan is an unsecured option, the bank primarily considers your eligibility to extend a suitable Loan amount. Work towards improving your eligibility. It helps you get a good Loan amount. You can improve your Personal Loan eligibility by focusing on personal financial factors such as repayment capacity, credit score, etc. Alternatively, apply for the Loan with a co-applicant to boost the overall eligibility.
Interest rates
The Personal Loan interest rates differ between banks. Hence, compare all interest rates and apply for a Loan with the bank offering the most competitive Personal Loan interest rates. This makes your repayment affordable. Furthermore, the bank considers your eligibility to extend a fair interest rate. Hence, enhance your eligibility. It may help you fetch a better interest rate.
Repayment
You can borrow the Personal Loan amount for a tenure between 12 to 84 months. You can repay the Loan amount in Equated Monthly Instalments, spread across the opted tenure. You also have the option to make partial and complete pre-payments towards the Loan repayment.
Associated charges
You must pay specific fees when taking a Personal Loan. Generally, the bank charges a processing fee of up to 2% of the Loan amount plus GST. If there is an offer or you have a long-standing relationship with the bank, they may waive the Loan processing fee.
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