Today the stereotype image of women has come to an end, we live in a women-centric world now, the thoughts, the process of thinking has changed and in this women empowerment era, every woman has a dream, and to fulfill those dreams they need finance, where this personal loan for women becomes a great help to them. Some banks and NBFCs are offering personal loans for women such as Bajaj Finserv, Kreditbee, HDFC Bank, and more.
What is a best personal loan for women?
The personal loan is designed to fulfill the financial needs of the women. This loan is offered at an attractive interest rate from any bank and NBFCs. Women can use this loan for any purpose while having multiple features and benefits.
Eligibility criteria of personal loan for salaried individuals
If an individual is a salaried employee, you can avail of a personal loan to fulfill the eligibility criteria. Here is some generic eligibility that is required to avail the personal loan for women:
- The applicant must be an Indian resident, then he/she will be eligible for a personal loan.
- If he/she must have an age limit between 21 years and 60 years.
- The individual must be an employee at an MNC, a private or public limited company with a minimum experience of 2 years.
Eligibility criteria of personal loan for self-employed individuals
- The applicant must be an Indian resident.
- He/she should be a minimum of 22 years and a maximum of 65 years for the loan application process.
- The applicant should have a minimum work experience of 4 years.
Eligibility criteria of personal loan for NRIs
Apart from self-employed and salaried individuals must follow the generic eligibility check listed below:
- The individual should be working in the same company for a minimum of 1 year.
- The applicant should depend on the lender, the user may require a co-guarantor while applying for the personal loan.
Eligibility criteria of personal loan for pensioners/Government employees
- The applicant should be a maximum of 76 years for the loan approval.
- The applicant’s pension should be drawn by any of the bank branches.
- For the pensioner applicant, there must be a third-party guarantee.
Factors affecting personal loan for women
Here are some key factors affecting personal loan for women are listed below:
- The age of the applicant should be minimum of 21 years and a maximum of 63 years for the loan approval process.
- The individual must be Indian who can apply for a personal loan.
- The borrower must have a good credit score for the bank to assess the creditworthiness. The user must have an impact on the loan amount, period of credit, and terms that you offered on the line of credit.
How to improve personal loan eligibility?
The applicant must qualify for a loan, as they are required to meet the online personal loan eligibility criteria. Here are few points to increase your chances of availing of a loan:
- Maintain a high credit score
The applicant must have a CIBIL Score of 750 and above for personal loan approval. Apart from this, a low score of 750 suggests that the applicant has a standard repayment record. This might lead the applicant for paying a higher interest rate or even rejection of your loan application.
- Clear your credit card bills and existing loans
If you are applying for a personal loan, you should be sure that you reduce your existing outstanding debt as this will be balanced out your debt-to-income ratio. If you already have multiple loans to repay, then ensure that the combined EMIs do not exceed 50% of your income.
- Including all my sources of income
The income of the individual is the most important aspect of qualifying for the personal loan eligibility check. The applicant’s source of income is what assesses the ability to repay the loan amount. Thus, it is important to show all your income besides your salary.
- Avoid multiple loan applications
When the user applies for a personal loan, the applicant can check the credit to assess the default risk. These inquiries are considered and dependent on your CIBIL report. Thus, when you apply for multiple loans, you might be seen as credit hungry. It ensures that the bank you apply for a personal loan for must have the minimum eligibility criteria to assess the loan easily. You can compare the available options and make a final decision.
Personal loan EMI Calculator
Now that you’ve agreed to take out a personal loan, it’s important to schedule your monthly payments or EMIs in conjunction with your other financial commitments. The aim is to pay the EMI on time and avoid defaulting. To do so, you’ll need to know your EMI amount’s exact monthly outflow. A Personal Loan EMI Calculator is the easiest way to find out.
When using the EMI Calculator, three important inputs are required:
- Loan Amount
This is the personal loan amount.
- Interest Rates
The real expense of your loan application is the rate of interest.
- The Loan Tenure
The loan tenure, also known as loan length, is the next input. This is the cumulative amount of time, in months or years that the EMI needs to be pay.
Tips to get the best Personal Loan in India
So, whatever your reason for finding the best personal loan, here are some pointers to help you find the right product:
- Analyze Interest Rates on Loans
Perhaps a bank approaches you with a personal loan offer of “just 14 percent per year.” Alternatively, you might go to the bank where you have your savings account and discover that the interest rate is “just 16 percent.” Regardless of how appealing the bank’s offer appears to be, researching personal loan terms and comparing interest rates is a vital measure to take before deciding which bank to borrow from. You can either do your research by going to the websites of various banks and finding out their interest rates, or you can go to financial websites like Afinoz.com, which will provide you with all the necessary details based on the requirements you enter.
- Compare and contrast fees
When it comes to personal loans, interest rates aren’t the only factor to consider. You can also take a peek at the bank’s different fees. Processing fees, late payment charges, cheque bounce charges, loan cancellation charges, and service tax on each service rendered by the bank are typical fees associated with a personal loan.
- Keep an eye out for repayment flexibility.
Prepayment penalties apply to most personal loan items, both in full and in part. This means you’ll have to pay a small fee if you want to pay off your loan’s unpaid balance before the term expires. Few banks do not charge foreclosure fees, but most charge between 2% and 5% of the outstanding balance. Although the deduction of future interest payments will help you minimize your overall debt burden, it still costs you Rs. 10,000 to Rs. 25,000 for the amount of Rs. 5 lakhs loan.
- Choose an EMI that you can afford
You must be certain that you will be able to make daily repayments to close the loan on time and without penalties before taking out a loan. You’ll need an estimation of the equated monthly installment (EMI) you’ll have to pay on the loan sum to do this. Using an EMI calculator to figure out your estimated EMI is easy. The higher the loan number, the higher the EMI will be. Make sure that your cumulative EMI deductions in a month do not exceed 50% of your monthly income. If your monthly income is Rs. 50,000, for example, your total EMIs do not exceed Rs. 25,000.
- Look at other loan options
A personal loan isn’t always the only option for getting out of a jam. Ask your friends and family for a loan, particularly if the sum is small. You will avoid the hassle of paying an additional loan to a bank this way. However, you must be aware that having financial transactions can also lead to the breakdown of relationships. So, if you take out an interest-free loan from a family member, make sure you repay it promptly to avoid causing friction in your relationship.
Lastly, availing a personal loan for women is quite easy and simple these days. As you can find various personal loan lenders offering the same. We hope that this has helped you to get an affordable and fast personal loan.