How Can I Avail of a Personal Loan in Delhi? - Loan Trivia

## Monday 20 November 2023

A personal loan is a financial product offered by banks, credit unions, or online lenders to individuals for various personal expenses. Unlike mortgages or car loans, personal loans are unsecured, meaning they don't require collateral. Borrowers receive a lump sum amount, typically with a fixed interest rate and a predetermined repayment schedule.

Personal loans are versatile and can be used for various purposes, such as consolidating debt, covering medical expenses, funding home improvements, or even taking a vacation. The eligibility criteria for personal loans typically include a good credit score, stable income, and a reasonable debt-to-income ratio.

It's important to choose a loan with favorable terms, as interest rates and fees can vary widely among lenders. Responsible borrowing and timely repayments are crucial to maintaining a positive credit history.

Individuals can quickly and easily acquire a personal loan in Delhi. Before you make an application for a personal loan, you need to determine whether you are eligible for one. If any of the following apply to you, then it is considered that you are qualified for a personal loan:

A person who is a citizen of India or a permanent resident there

Over the age of 21 with a monthly income of over Rs 30,000

## Personal loan EMI calculator

The mathematical formula for calculating EMIs is EMI = [P x R x (1+R)^N]/[(1+R)^N-1] where E: Equated Monthly Installment,

P: Principal or loan amount,

R: Interest rate per month (the annual interest rate is divided by 12 to get the monthly interest rate), and

N: Number of monthly instalments or loan tenure in months.

A simple interest calculator shows the principal and interest accrued. Simple interest calculator using the formula:

A = P (1+rt)

P = Principal Amount

R = Rate of interest

t = Number of years

A = Total accrued amount (Both principal and interest)

Interest = A – P.

## Personal Loan companies in New Delhi

 Bank Interest Rate Range Processing Fee Range Loan Amount Tenure ICICI Bank 10.50% - 19.00% (Fixed) 2.50% Rs.25 lakh (Max) 1-5 Years Citibank 9.99% - 16.49% 1% to 2.5% Rs.30 lakh (Max) 1-5 Years Kotak Mahindra Bank 10.25% onwards Up to 2.5% Up to Rs.20 lakh 1-5 years

Making good on a loan repayment means paying back the principal amount plus any interest payable on that loan. Scheduled payments, often in the form of equivalent monthly installments (EMIs), are a common form of the repayment mechanism.