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A personal loan is an unsecured loan provided by the lenders to the borrowers for their personal needs. Here, unsecured means that the loan amount provided by the lender is not secured or covered by any asset of the borrower, which is one of the reasons why these loans come with higher interest rates among most loan categories.

The major target market for lenders is the young generation, for people who are not well-established (do not have a lot of assets). Such people require personal loans the most. And they can pay off the loan amounts (along with the interest rates) in installments through their salaries. It is simply a win-win situation for both parties. The borrower's emergency needs are met instantly without putting anything collateral. While the lenders earn through the interest rates, they charge from their borrowers.

A need for a Personal Loan can arise anytime. It is not something that is planned in advance by anyone. A Personal loan could be needed for various purposes, for example, a sudden rise in expenses, or for any emergencies like medical, travel & transport, fire or fixtures of expensive items, etc.

Many people in India have a traditional mindset regarding personal loans. They believe taking a personal loan means that the borrower is broke or in desperate need of funds. Sure, such situations happen too, but it does not have to be like that for everyone. There are plenty of borrowers who can pay for their financial needs but prefer to take a personal loan instead.

People do that for various reasons such as, not being willing to empty their bank accounts or not wanting to withdraw money from their business. So, it may not always be a desperate move when a borrower approaches a financial institution to get a personal loan. Instead, it could be better financial planning by the individual.

Delhi being the capital of India, has all sorts of facilities for its borrowers.

There are many institutions in Delhi that a borrower can approach for availing of a personal loan. Most lenders would have similar questions and requirements from the borrower, depending upon their risk appetites.

Basic requirements for availing of a personal loan in Delhi:

l  The borrower must be a citizen of India.

l  The borrower must have a source of income, salaried or self-employed.

l  The minimum age of the borrower can be 21.

l  CIBIL Score (Credit Score) must be over 750.

Interest rates

The most important thing for a borrower during availing of a personal loan is the interest charged by the institution. As mentioned in the beginning, the interest rates for availing of personal loans are generally higher than the normal loan categories. In Delhi, the Personal loan interest rates start from not less than 10.5%, which is quite reasonable. The rest of it depends upon the borrower's criterion.

The loan amount generally starts from 10,000 and goes as high as 40 Lakh rupees.

How to get a personal loan easily at the lowest interest rates?

The interest rate depends upon the comfort you can provide to any institution in giving you the loan. If you are a high-risk borrower (Not so good repayment history or credit score, low salary, etc.), the institution will charge you higher interest rates. Institutions work on a simple strategy followed by any business, i.e., Higher Risk = Higher Reward.

So, to avail of personal loans, you need to work on your credibility in the market. A few points to practice to get personal loans easily at the lowest interest rates are:

1. Income: In the end, the lender wants its money back with interest. So, if you have a good source of income as your salary or business, the lender won't have any problem giving you the loan.
2. Credibility: Before giving away loan amounts to the borrowers, a lender will check the repayment history and the CIBIL Score of the borrower. If you are already in a pile of debt with any other institution, the bank will refrain from giving you the loan at all. And if it does, the interest rates would be sky-high for sure. So, the borrower must fix their credibility and repay their loans on time to better their credibility.
3. Document Verification: There shouldn't be any problem in the documentation process with the lender. All the documents provided by the borrower must be legitimate and valid during the time of verification.

Delhi is a moderately developed state of India. The institutions in Delhi are developed enough to provide the users with their personal loans by the convenience of sitting at their homes. Documents can be verified online, and with today's technology, Online KYC can be done as well. So, it is not at all a complicated process to avail of a loan in Delhi.

Although, it is advised to take personal loans only when there is an absolute need for funds. And repay the loan amount with interest on time to avoid any late payment charges.