Is Personal Loan In Jaipur Leading To Financial Traps?
Everyone in the world needs money, but all of us do not have enough money. So every one of us takes additional cash in the form of debts. They are two types of loans generally.
Secured loan v/s unsecured loan:
In a secured loan, you should assure the person or bank to get your debt money. The interest rate is low when compared with an unsecured loan. Customers can choose the repayment tenure according to their convictions. If you fail to repay the loan in time, they can cease the properties belonging to you. In unsecured loans, we will assure the bank or person who gives loans to us. Unsecured loans are sanctioned on the basis of annual salary, cibil score, etc. The interest rates are high when we compare them with other loans. Personal loan provider in jaipur and credit cards come under unsecured loans.
Personal loans eligibility:
If a person wants to be approved for a personal loan, the first thing that is checked is the customer’s age, which should be above twenty-one and below seventy. The second criteria are about salary credited in the pay slips, and the final is the civil score. If the cibil score exceeds 750, he is eligible for a personal loan. The maximum loan you can get is equal to your annual income or a more significant amount; it depends on the banks.
Repayment:
A personal loan should be paid back within a fixed time period of five years. The interest rates of personal loans are generally high because no security is provided to banks. There are two types of interest rates. Fixed interest is the rate of interest fixed when taking a loan. Floating interest means the interest rate may decrease or increase, depending on the government’s decision.
Nowadays, getting personal loans has become very easy with online apps. Online apps don’t check all the eligibility steps. They only check the identity card and cibil score and give loans. The students whose age is less than twenty-one are also getting personal loans. It leads to a financial trap at a young age, and in the future, they will lose the eligibility to get personal loans.
It would be wise to use a personal loan in jaipur, when it is needed only. Otherwise, we may fall into a financial trap that leads to various problems. The interest rates on online personal loan apps are very high, and if you do not pay the loan in time, then cibil score gets damaged. Students are the main targets of online personal loan apps. Students should get aware among them of online personal loan apps.
Before taking a personal loan, check the interest rate in all banks. The bank that gives the personal loan may take some of the amounts in the form of commission or a transaction fee. The transaction fee must be less than one percent, and we should also take care of the pre-payment charges. Pre-payment charges should be less than four percent.