A personal loan is an unsecured loan offered by banks, NBFCs (Non-Banking Financial Companies), and other financial institutions. It doesn’t require collateral, allowing you to borrow funds without pledging an asset.

What is a Personal Loan?

A personal loan meets various financial needs like medical emergencies, weddings, travel, or home renovations. You repay the loan through monthly instalments (EMIs) over a fixed tenure, usually between 1 and 5 years. Once your loan is approved, the money is credited to your account. You repay this amount in fixed EMIs over a set period. The EMI includes both the principal and interest.

Before applying for a personal loan, it’s crucial to understand how they work. Knowing the interest rates, tenure, and eligibility criteria helps you avoid mistakes and choose the best option for your needs.

Purpose of the Blog

This blog will help you understand a personal loan, its key features, and how it can benefit you. By the end, you’ll have a clear idea of whether a personal loan is the right option for your financial needs.

Key Features of a Personal Loan

1. Unsecured Nature

Personal loans are unsecured, meaning you don’t have to provide any collateral like a house or car. This makes it accessible for people who don’t own valuable assets. However, because no security is involved, the interest rates are generally higher than secured loans.

2. Fixed Loan Amount and Tenure

Once approved, the loan amount and repayment period (tenure) are fixed. In India, loan tenures typically range from 1 to 5 years, giving you a choice depending on your repayment ability.

3. Flexible Usage

Personal loans can be used for any purpose, unlike specific loans (like home or car loans). Whether you need to cover a medical emergency, pay for a vacation, or fund a wedding, you have the freedom to use the money as you see fit.

Common Uses for Personal Loans:

• Medical Emergencies
• Weddings
• Home Renovation
• Travel
• Debt Consolidation

4. No Restriction on Usage

One of the biggest advantages of a personal loan is its flexibility. Unlike other loans that are tied to a specific purpose, personal loans allow you to use the funds for any personal need without restrictions.

Types of Personal Loans

1. Standard Personal Loan

This is the most common type of personal loan offered by banks and NBFCs. It’s an unsecured loan used to meet a variety of personal needs without requiring collateral.

General Usage

A standard personal loan can be used for:

• Medical emergencies
• Education Expenses
• Travel
• Wedding expenses
• Home Renovation

It offers the borrower complete flexibility to use the loan for any personal expense.

2. Instant Personal Loan

An instant personal loan is a type of loan that is quickly approved, often through digital lending platforms or apps. These loans typically feature fast approval and quick disbursement.

Ideal For

This type of loan is perfect for people needing urgent funds, especially in emergencies like:

• Sudden medical needs
• Last-minute travel
• Unplanned expenses

Because the entire process is online, the loan can be approved and disbursed within hours.

3. Top-Up Personal Loan

A top-up loan allows you to borrow additional funds on top of an existing personal loan. If you’ve already taken a personal loan but need more funds, you can apply for a top-up loan.

How It Works

Top-up loans are usually offered to borrowers with a good repayment track record on their current loan. The interest rate may be similar to or slightly higher than the original loan.

Ideal For

A top-up loan is ideal for individuals who:

• Need extra funds for additional expenses.
• Have an ongoing loan but don’t want to take a new one.

4. Personal Loans Based on Income Group

For Salaried Employees

Personal loans for salaried individuals are typically easier to secure as they have a stable income. Lenders assess your salary, employment stability, and CIBIL score to determine eligibility.

For Self-Employed Individuals

Self-employed individuals can also avail of personal loans, but they are assessed based on their business income, profits, and overall financial stability. While the process may be more detailed, many banks offer tailored personal loans for self-employed professionals.

How Does a Personal Loan Work?

1. Application Process

• Step 1: Research – Compare different lenders and loan offers.
• Step 2: Eligibility Check – Ensure you meet the lender’s criteria (age, income, CIBIL score).
• Step 3: Application – Fill out the application form, either online or at the bank.
• Step 4: Submit Documents – Provide necessary documentation like:
  • Identity proof (Aadhaar, PAN)
  • Salary slips (for salaried individuals)
  • Bank statements (usually 3-6 months)

Importance of Documentation

Providing the correct documentation speeds up the approval process. Ensure you have all the required documents ready.

2. Approval Process

Lenders evaluate personal loan applications based on:

• CIBIL score: A score of 650 or higher is generally preferred.
• Income stability: Whether you have a steady job or a consistent source of business income.
• Debt-to-income ratio: Ensures that your current debts won’t interfere with the repayment of the new loan.

Timeframe for Approval

Loan approvals can take anywhere from a few hours to a few days. Digital lenders often approve loans faster, while traditional banks may take longer.

3. Loan Disbursement

Once approved, the loan amount is typically disbursed within 24 to 48 hours for most lenders. Instant personal loans may be disbursed within a few hours.

4. Repayment Process

Personal loans are repaid through equated monthly instalments (EMIs), which include both the principal and interest.

Flexible Tenure Options

Most personal loans offer repayment tenures ranging from 1 to 5 years. You can choose a tenure based on your repayment capacity:

• Shorter tenure: Higher EMIs but lower overall interest cost.
• Longer tenure: Lower EMIs but higher overall interest paid.

The EMI is automatically debited from your account each month, making the process smooth and hassle-free.

Interest Rates and Fees

1. Interest Rates on Personal Loans

Fixed vs. Floating Interest Rates

When taking a personal loan, you can choose between fixed and floating interest rates:

• Fixed Interest Rate: The interest rate remains constant throughout the loan tenure. This provides stability and predictable EMIs, but you might miss out on reductions in market rates.
• Floating Interest Rate: The interest rate fluctuates with market conditions. While this can lower your EMIs if rates drop, it also comes with the risk of increased payments if rates rise.

Factors Affecting Interest Rates

Several factors determine the interest rate on a personal loan:

• CIBIL Score: A higher CIBIL score (750+) increases your chances of getting a loan at a lower interest rate. A score below 650 may lead to higher rates or even rejection.
• Income Level: Lenders offer lower rates to applicants with higher, stable incomes as they are seen as less risky.
• Loan Amount: Larger loans may come with slightly higher interest rates, depending on the lender’s policies.

2. Comparison of Interest Rates Across Banks

Here’s a quick overview of personal loan interest rates from major banks in India:

• State Bank of India (SBI): 9.60% – 15.65%
• HDFC Bank: 10.50% – 21.00%
• ICICI Bank: 10.75% – 19.00%
• Axis Bank: 10.49% – 17.00%

When choosing a lender, compare the interest rates, but also consider other factors like fees and repayment flexibility.

3. Additional Fees & Charges

Personal loans often come with additional fees besides interest rates, such as:

• Processing Fees: Most banks charge a processing fee that can range from 1% to 3% of the loan amount. This fee is deducted from the loan amount before disbursement.
• Late Payment Fees: If you miss an EMI, banks levy late payment penalties. These charges vary from 2% to 3% of the EMI amount, so it’s essential to ensure timely payments.
• Prepayment Penalties: If you repay your loan before the tenure ends, some banks charge a prepayment penalty, typically 2-5% of the outstanding loan amount. It’s important to check whether your lender allows prepayment and under what conditions, as it could help you save on interest.

Eligibility Criteria for Personal Loans

1. Age and Income Requirements

Age Limit

The typical age range to qualify for a personal loan in India is 21 to 60 years. Some lenders may extend the upper age limit for senior citizens or salaried employees nearing retirement.

Minimum Income Criteria

Banks set a minimum income requirement to ensure you can repay the loan comfortably. Generally:

• For salaried employees, the minimum monthly income is around ₹25,000.
• For self-employed individuals, the required monthly income varies but is usually higher to account for fluctuating business earnings.

2. CIBIL Score Requirement

Minimum CIBIL Score

A good CIBIL score (650+) is crucial when applying for a personal loan. Banks rely heavily on this score to assess your creditworthiness. A higher score translates to lower interest rates and easier approval.

Impact of a Low CIBIL Score

If your CIBIL score is below 650, it could result in:

• Higher interest rates or limited options.
• Rejection of your loan application.

Improving Your CIBIL Score

To boost your score:

• Pay off outstanding debts on time.
• Avoid taking too many loans or credit cards.
• Maintain a healthy credit utilization ratio (use no more than 30% of your credit limit).

3. Employment Type

Salaried vs. Self-Employed

Eligibility criteria differ based on employment type:

• Salaried Employees: Lenders prefer salaried individuals with a stable job and a consistent salary. The requirement is typically 1 year of work experience, with 6 months in the current job.
• Self-Employed Individuals: Lenders evaluate business income and stability, and the loan process may involve a more detailed assessment. Self-employed individuals should provide financial documents like IT returns and profit & loss statements.

Job Stability

For salaried individuals, job stability is a key factor. Lenders typically look for continuous employment of at least 12 months with your current employer, which reassures them of your ability to repay the loan.

4. Loan Amount Eligibility

The loan amount you are eligible for is calculated based on your:

• Income: Your monthly income plays a significant role in determining the loan amount. Higher-income allows for larger loan approval.
• Repayment Capacity: Banks assess your existing liabilities (like other loans) and calculate your ability to repay the personal loan. Ideally, your EMI should not exceed 40-50% of your monthly income.

How to Choose the Best Personal Loan

1. Compare Interest Rates

When applying for a personal loan, it’s crucial to compare interest rates from various lenders, including banks, NBFCs, and online lenders. A lower interest rate can save you significant amounts over the loan tenure.

• Visit the websites of different banks or use loan comparison tools to check their current interest rates.
• Focus on the annual percentage rate (APR), as it includes both the interest rate and any associated fees.
• Opt for a fixed-rate loan if you prefer stable monthly payments, or consider a floating-rate loan if you anticipate falling rates in the future.

2. Check Additional Charges

Many applicants overlook additional charges, which can significantly affect the overall cost of the loan. Common additional charges include:

• Processing Fees: Usually 1-3% of the loan amount.
• Prepayment Charges: Applicable if you decide to repay the loan before the tenure ends.
• Late Payment Fees: A penalty if you miss an EMI payment, usually around 2-3% of the outstanding amount.

Before signing any agreement, ensure you fully understand all fees and how they might affect your loan repayments.

3. Loan Tenure

The loan tenure plays a major role in determining your monthly EMI payments and total interest costs:

• A longer tenure reduces your EMI but increases the total interest you pay over the loan term.
• A shorter tenure results in higher EMIs but lowers the total interest burden.

Use loan calculators to figure out the best tenure based on your income and repayment capacity.

4. Read the Terms and Conditions

Before finalizing a personal loan, read the loan agreement carefully:

• Look for clauses on prepayment penalties, interest rate changes, or any restrictions on loan usage.
• Ensure transparency regarding charges, repayment options, and penalties for missing payments.

Taking the time to go through the loan terms protects you from any hidden surprises.

5. Choose the Right Lender

Choosing a lender involves more than just comparing interest rates. Look for reputable banks or NBFCs with a strong track record of transparent services:

• Check customer reviews and feedback on the lender’s customer service.
• Verify the lender’s reputation in terms of disbursement time and flexibility in repayment terms.
• Choose a lender offering clear communication and quick support for queries and concerns.

Trusted platforms like Kreditbazar partner with top NBFCs to provide reliable, pre-approved personal loans.

Pros and Cons of Personal Loans

1. Pros of Personal Loans

• No Collateral Required
  A major advantage of personal loans is that they are unsecured, meaning you don’t have to provide any collateral like property or gold. This reduces the risk of losing valuable assets.
• Quick Access to Funds
  Personal loans offer fast approval and disbursement, especially if you apply through online platforms or digital lending apps. You can often receive funds within 24-48 hours.
• Flexible Usage
  Unlike home or car loans, a personal loan gives you the freedom to use the funds for a variety of purposes, from medical emergencies to travel or home renovations.
• Fast Approval and Disbursement
  Personal loans can be processed and disbursed much faster than secured loans, making them ideal for urgent financial needs.

2. Cons of Personal Loans

• Higher Interest Rates
  Since personal loans are unsecured, lenders charge higher interest rates compared to secured loans like home loans. This can increase your overall repayment amount.
• Penalties for Late Payments
  Missing EMI payments can result in hefty late payment fees. Additionally, if you want to repay your loan early, you might face prepayment penalties.
• Impact on Credit Score
  Failing to repay a personal loan on time can negatively affect your CIBIL score, making it harder to obtain loans in the future.

Conclusion

In this blog, we discussed:

• What a personal loan is and its role in financial planning.
• Key features of personal loans include unsecured nature, flexible usage, and eligibility criteria.
• How to choose the best personal loan by comparing interest rates, loan tenure, and fees.
• The pros and cons of personal loans include their quick disbursement and potential risks like higher interest rates.  

Personal loans can be an excellent financial tool, especially when you need funds quickly for personal or emergency expenses. However, it’s crucial to compare options, understand terms and conditions, and select a loan based on your financial situation. 

If you’re considering a personal loan, make sure to explore trusted lenders with transparent processes, like those offered through Kreditbazar. With pre-approved loans from leading NBFCs, we ensure you get the funds you need quickly and securely. Apply today to take control of your financial needs!

Frequently Asked Questions about Personal Loan

Q1. What is the basic information of a personal loan?
Ans1. A personal loan is an unsecured loan offered by banks or NBFCs that does not require collateral. The loan amount can be used for various purposes, such as medical expenses, education, or debt consolidation. It typically has a fixed interest rate and tenure. Kreditbazar partners with multiple NBFCs to offer easy access to personal loans for customers.

Q2. What is considered a personal loan?
Ans2. A personal loan is a type of unsecured loan where borrowers do not need to pledge any asset. It can be used for any personal expense, such as home renovation, travel, or medical emergencies. It is distinct from secured loans like home or car loans.

Q3. What is a personal loan, and how do they work?
Ans3. A personal loan is a financial product offered by banks and NBFCs where individuals can borrow a set amount of money without providing any security. Borrowers repay the loan through fixed EMIs over a predetermined tenure. Kreditbazar helps simplify this process by partnering with top NBFCs to provide pre-approved loans.

Q4. What are the 5 easy steps to get a personal loan?
Ans4.

1. Check eligibility: Ensure you meet the lender’s income and CIBIL score requirements.
2. Apply online/offline: Fill out an application form.
3. Submit documents: Provide ID proof, salary slips, and bank statements.
4. Loan approval: The lender will verify your details and approve the loan.
5. Disbursement: Once approved, the loan amount is credited to your account.

Kreditbazar makes the process easier by connecting you with reliable lending partners for quick approval.

Q5. What are the risks of personal loans?
Ans5. Personal loans come with certain risks such as higher interest rates, penalties for late payments, and the possibility of a negative impact on your CIBIL score if you miss EMIs. Always choose a trustworthy platform like Kreditbazar to avoid hidden charges.

Q6. Is a personal loan good or bad?
Ans6. A personal loan can be good if used wisely for urgent needs like medical emergencies or home repairs. However, it can be bad if mismanaged, leading to higher debt due to interest rates. Kreditbazar ensures transparency with its lending partners, making loans easier to manage.

Q7. Which loan is best for personal use?
Ans7. The best loan for personal use depends on your requirements. Personal loans are ideal for those who need unsecured funds for a wide variety of needs. Kreditbazar connects you with lending partners offering flexible and convenient personal loans.

Q8. What are the advantages of a personal loan?
Ans8.

• No collateral required: You don’t need to pledge assets.
• Flexible usage: Funds can be used for any purpose.
• Quick disbursement: Loans are usually disbursed within a few days.
• Simple application process: Kreditbazar’s partners make the process even easier.

Q9. How is a personal loan calculated?
Ans9. The personal loan amount is calculated based on factors like your income, CIBIL score, and repayment capacity. Lenders determine the EMI using the loan amount, interest rate, and tenure. Kreditbazar’s partners offer transparent loan terms to help you plan your repayment.

Q10. What is the method of a personal loan?
Ans10. The personal loan process involves:

1. Application
2. Document submission
3. Approval based on income and CIBIL score
4. Disbursement of the loan amount.

With Kreditbazar, the entire process is simplified through its lending partners.

Q11. What is the difference between a loan and a personal loan?
Ans11. A personal loan is an unsecured loan, meaning no collateral is needed, while other types of loans, like home or car loans, require collateral. Personal loans also have fewer restrictions on usage.

Q12. What is the maximum time for a personal loan?
Ans12. The maximum tenure for a personal loan typically ranges from 1 to 5 years. Some banks and NBFCs may offer extended terms based on the borrower’s profile. Kreditbazar’s lending partners provide flexible tenures to suit your financial needs.

Q13. For what purpose is a personal loan taken?
Ans13. A personal loan can be taken for various purposes, including medical emergencies, weddings, education, home renovation, travel, and debt consolidation. Kreditbazar partners with top NBFCs to offer loans for all these purposes.

Q14. How many times of salary is a personal loan?
Ans14. Generally, personal loan eligibility is around 10-20 times your monthly salary. However, this depends on the lender’s policies and your repayment capacity. Kreditbazar’s lending partners assess your profile to offer the best loan amount.

Q15. Which bank gives a personal loan faster?
Ans15. Banks like HDFC, ICICI, and SBI are known for quick loan disbursements. However, platforms like Kreditbazar connect you with top NBFCs for faster and hassle-free loan processing.

Q16. What are the basic criteria for a personal loan?
Ans16. Basic criteria include:

• Age: Typically between 21-60 years
• Income: Minimum salary requirements vary, but usually start from ₹25,000
• CIBIL Score: A score of 650 or above

Kreditbazar helps you find the best loan based on your profile.

Q17. Which finance is best for a personal loan?
Ans17. The best finance provider depends on your needs, but NBFCs often provide faster and more flexible personal loans. Kreditbazar partners with top NBFCs to offer personalized loan solutions.

Q18. How much salary is required for a 20 lakh personal loan?
Ans18. To qualify for a ₹20 lakh personal loan, your monthly salary should typically be around ₹1 lakh or more, depending on the lender’s policies. Kreditbazar’s lending partners assess your eligibility to offer loans suited to your income.

Q19. How much CIBIL score is required for a personal loan?
Ans19. A minimum CIBIL score of 650 is required for most personal loans. Higher scores increase your chances of approval and getting better interest rates. Kreditbazar helps you find lenders that accept your score.

Q20. What happens if I never pay EMI?
Ans20. Failing to pay EMIs can lead to late payment penalties, legal action, and a severe drop in your CIBIL score. In extreme cases, it may lead to loan recovery procedures. Always stay on top of your EMI payments to avoid such consequences.

Q21. What is the basic knowledge of a loan?
Ans21. A loan is a sum of money borrowed that is expected to be paid back with interest. Loans can be secured or unsecured, with various terms and conditions based on the lender. Understanding these basics helps in making informed financial decisions.

Q22. Which loan has the highest risk?
Ans22. Unsecured loans, like personal loans, often have the highest risk due to the lack of collateral. If repayments are missed, it can lead to significant financial and legal repercussions. Always assess your repayment capacity before applying for such loans.

Q23. What are the drawbacks of personal loans?
Ans23. Drawbacks include higher interest rates compared to secured loans, the potential for debt accumulation, and penalties for late or missed payments. It’s crucial to evaluate your financial situation before taking a personal loan.

Q24. How much salary is required for a 5 lakh personal loan?
Ans24. For a ₹5 lakh personal loan, a monthly salary of around ₹30,000 to ₹40,000 is typically required, depending on the lender’s assessment criteria. Kreditbazar can help determine the best options based on your salary.

Q25. How much salary is required for a 10 lakh personal loan?
Ans25. To qualify for a ₹10 lakh personal loan, you should generally have a salary of at least ₹60,000 to ₹70,000 per month, but this can vary by lender.

Q26. How much salary is required for a 25 lakh personal loan?
Ans26. A monthly salary of around ₹1.5 lakh is usually needed for a ₹25 lakh personal loan, depending on the lender’s policies.

Q27. Why do Indians take personal loans?
Ans27. Indians take personal loans for various reasons, including medical emergencies, education, weddings, travel, home renovation, and debt consolidation. The ease of access to personal loans through platforms like Kreditbazar makes them a popular choice.

Q28. Who is responsible for a personal loan?
Ans28. The borrower is primarily responsible for repaying the personal loan. In the case of joint loans, co-borrowers share the responsibility.

Q29. Does a personal loan require a salary slip?
Ans29. Yes, most lenders require a salary slip as part of the documentation process to verify income and assess repayment capacity.

Q30. What is the maximum for a personal loan?
Ans30. The maximum amount for a personal loan can vary widely by lender, ranging from ₹50,000 to ₹50 lakhs, depending on the borrower’s income, CIBIL score, and repayment ability.

Q31. What is the longest time for a personal loan?
Ans31. The longest tenure for a personal loan typically ranges from 5 to 7 years, depending on the lender’s terms and conditions.

Q32. How is personal loan eligibility calculated?
Ans32. Eligibility is generally calculated based on factors like income, employment history, CIBIL score, and existing debt-to-income ratio. Lenders assess these to determine the loan amount and interest rate.

Q33. Which is better: personal loan or personal finance?
Ans33. The term “personal finance” encompasses all financial activities of an individual, while a personal loan is a specific financial product. Whether a personal loan is better depends on the individual’s needs and financial goals.

Q34. What is better, OD or a personal loan?
Ans34. An overdraft (OD) allows you to withdraw more than your account balance up to a limit, while a personal loan is a lump sum borrowed. Personal loans typically have fixed repayment terms, while ODs offer more flexibility but may have higher interest rates.

Q35. Does OD affect CIBIL score?
Ans35. Yes, overdrafts can affect your CIBIL score if they are not managed properly, especially if payments are missed or if the overdraft limit is frequently breached.

Q36. Is a 12% personal loan good?
Ans36. A 12% interest rate on a personal loan is considered reasonable, but it depends on the prevailing market rates and your credit profile. Always compare offers from multiple lenders, including Kreditbazar’s partners.

Q37. Which loan is good: personal or gold loan?
Ans37. A gold loan usually offers lower interest rates compared to personal loans due to being secured by gold. However, personal loans are more versatile as they can be used for various purposes without collateral.

Q38. What happens if you cannot pay a personal loan?
Ans38. If you cannot pay a personal loan, you may face penalties, a negative impact on your CIBIL score, and potential legal action from lenders. It’s crucial to communicate with your lender for possible restructuring options.

Q39. What will happen if a personal loan is not paid?
Ans39. Not paying a personal loan can lead to default, resulting in collection actions, legal consequences, and a significant drop in your credit score.

Q40. What happens to EMI if the person dies?
Ans40. If the borrower dies, the outstanding loan amount may need to be settled by the legal heirs or the co-borrower, depending on the loan agreement. Some loans may have insurance coverage that can help settle the dues.

Q41. Is not paying EMI a crime?
Ans41. Not paying EMI is not a crime in itself, but it can lead to legal actions from lenders to recover the dues.

Q42. What happens if I never pay EMI?
Ans42. Failing to pay EMIs can result in penalties, legal action, and significant damage to your CIBIL score, which affects future borrowing opportunities.

Q43. Is the wife liable for the husband’s debt in India?
Ans43. In India, a wife is not automatically liable for her husband’s debts unless she is a co-borrower on the loan.

Q44. Can a person go to jail for not paying a personal loan?
Ans44. No, you cannot be jailed solely for not paying a personal loan. However, lenders can pursue legal action to recover the debt.

Q45. What is the legal action against personal loan defaulters?
Ans45. Legal action can include sending demand notices, filing civil suits for recovery, and in extreme cases, initiating proceedings for bankruptcy.

Q46. What is the legal notice for a personal loan?
Ans46. A legal notice for a personal loan is a formal communication from the lender requesting repayment of the outstanding loan amount.

Q47. Is a credible legal notice fake or real?
Ans47. A legal notice from a legitimate lender should be taken seriously. Verify the authenticity by contacting the lender directly.

Q48. What is a demand notice for a personal loan?
Ans48. A demand notice is a formal notice sent by the lender to the borrower, requesting immediate repayment of the overdue loan amount.

Q49. What is a legal notice for a loan defaulter?
Ans49. A legal notice for a loan defaulter is a document issued by the lender notifying the borrower of their default and demanding repayment.

Q50. What are the RBI guidelines for loan defaulters?
Ans50. RBI guidelines require lenders to follow a set procedure for dealing with loan defaulters, including providing adequate notice before taking legal action.

Q51. Can we ignore the Lok Adalat notice?
Ans51. Ignoring a Lok Adalat notice is not advisable, as it can lead to legal repercussions. Attend the hearing to resolve the matter amicably.

Q52. What is Lok Adalat for loan recovery?
Ans52. Lok Adalat is a legal mechanism in India for settling disputes, including loan recovery issues, outside of traditional court proceedings.

Q53. Can police call for loan defaulters?
Ans53. While police cannot arrest you for defaulting on a loan, they may be involved in cases of fraud or other criminal activities related to loans.

Q54. What happens if you cannot pay a personal loan?
Ans54. If you cannot pay a personal loan, you may face penalties, legal action, and damage to your credit score. It’s important to communicate with your lender to discuss options.

Q55. What is IPC 420 for a personal loan?
Ans55. IPC 420 pertains to cheating and fraud. If a borrower misrepresents their financial situation to obtain a loan, they may face legal action under this section.

Q56. Can loan recovery agents come to the home?
Ans56. Loan recovery agents can visit your home to recover dues, but they must adhere to legal guidelines and cannot use intimidation or threats.

Q57. What if I lost my job and can’t pay EMI?
Ans57. If you lose your job and can’t pay EMIs, contact your lender immediately. Many lenders offer options like loan restructuring or moratoriums.

Q58. Can loan recovery agents call family members?
Ans58. Loan recovery agents can contact family members only to locate you if you default on your loan, but they cannot disclose loan details.