Life embraces bundle of special moments filled with joy and excitement for everyone.
The happiness certainly multiplies when an individual becomes capable of fulfilling all his desires at the right time without compromising on the budget. Right from buying luxurious home décor to wedding of your daughter, personal loans can help one meet all his expenditures without compromising on the dream. What makes personal loan unique is that fact that it doesn’t require any collateral security which clearly implies that it is an unsecured loan. Another aspect worth noting about personal loan is the rate of interest remains fixed throughout unlike any other loans. So if you are worried how will you sponsor an exotic vacation for your parents on their anniversary? Take a sigh of relief. Personal loan serves the purpose for you.
- The Minimum repayment period can be 2 years and maximum repayment period of a personal loan can be 5 years from some Lenders subject to certain conditions.
- The tenure of loan can be affected by certain criteria like customers profile and specific norms of the respective Lenders and it may vary from bank to bank.
Eligibility Calculation for Personal Loan
Net Take Home : Rs. 50000
Existing Obligations : Rs. 2500
Eligible EMI = Take Home Salary per month X bank FOIR-Obligations per month = (50000*0.5-2500) == Rs. 22500(wherein the FOIR as per the lender is 50 %)
EMI Per lakh – Rs. 2250( as per emi calculation at 12.5 % ROI and 5 years Tenure )
Loan Eligibility= Eligible EMI /EMI per Lakh = 22500/2250 = Rs. 10 lakhs
Total to pay based on above calculation for 10 lakh INR in 5 years = (EMI x 12 Months ) X Tenure = 22500X12X5 = 1350000 INR in span of 5 years.