There are basically two types of loans first, good loans: includes car loans, house loans, etc, where you are getting a loan to invest in an asset for long term future use and for generations to come. Second, bad loans: those where you are getting loans just for fulfilling your immediate requirements or to come out of the dire ephemeral crisis situation.
Personal loans come under bad loans
When does one feel the need for a personal loan: Usually people go for personal loans for their kin’s marriage, for vacation, for health emergencies, to buy dresses, etc. One needs to be prudent enough while opting for personal loans.
House loans and Travel loans
People often take personal loan to meet their travel expenses, such personal loan are often called as travel loan. Taking travel loan is not bad unless you are spending the amount diligently and are making sure that you don’t let yourself in debt. So travel loans can prove to be fruitful if you don’t let yourself in trouble in future.
Another category of the personal loan is house loan. House loan is most common type of loan which mostly everyone has availed. Since property price and real estate price are skyrocketing, its get difficult for any family or individual to fund the entire amount by themselves. So therefore banks become their go to destination for loans.
Not everyone has access to personal loans. Who all are eligible for personal loans? Farmers, self-employed, housewives, etc, who are not salaried employees are not eligible for personal loans.
Only those people who are paid annually (i.e. salaried employees) and who hold good credit history are eligible for it. Banks lend you loans according to your annual income, but there are certain banks that allow to give you the loan 1.5 to 2 times your annual incomes. You need to be smart enough to borrow personal loans so that you are not embattling with its repercussions later on.
Points to remember
One should also be well versed with certain terminology like prepayment charges, fixed and floating interests, reducing balance and flat interest so that you don’t end up being misled by the banks. Mostly they won’t, but certain precautionary measures are always better. And also you should enquire regarding these terminologies from them for your own sake.
You can get instant personal loans to meet up the requirements. There are many banks that provides instant personal loans to its customers. For more information you need to go through each bank’s guidelines.