1 comment

  • Avatar
    Maneet Anand

    The reason for getting a personal loan is not as important as your credit history or the value of your collateral, to get an approval.

    However, it may be of interest to the bank to decide on terms or conditions of the loan, especially in deciding the loan amount and repayment terms; as, if you are borrowing for education purposes, then you may not be able to repay while you are at school. Or if you are borrowing for a new business, then again you would want to give yourself some time to establish the business before the repayment starts.

    On the other hand, if it's for a wedding you are borrowing for, then the bank will decide on a loan amount accordingly. Hence, one needs to disclose the purpose to get a perspective on how much the bank is willing to lend and on what terms.

    Even though, the most important consideration for personal loan is the worth of your collateral. The banks are more interested in the security than anything else when it comes to personal loans. But, you must disclose the reason for taking a personal loan, to be able to negotiate better. Also, the purpose must be legal.

    Comment actions Permalink

Please sign in to leave a comment.