A personal loan is a convenient and affordable credit tool that is used by individuals and entities in case of a financial emergency and to satisfy their personal needs. These loans are granted by the financial organizations be it a bank or non-banking financial company. The purpose of extending this credit facility is to support the individuals and entities financially during their tough times. The interest rate charged by the lender on this type of credit is within the reach of the borrower and other related costs are also very nominal. With minimal documentation and paperwork, the borrower does not have to worry about being stuck in a protracted process.
The pliable terms and conditions make the policy more attractive for the borrowers. Various repayment options are available for the individual or entity to select from as per their comfort. All that the borrower has to comply with is the personal loan eligibility criteria and the application process.
The facility of paying back the loan through the Equated Monthly Installments (EMI) is available with this type of advance. The personal loan amount and personal loan interest rates are used to calculate the total personal loan amount. The total personal loan amount is to be paid by the borrowing individuals and entities over the tenure. Repaying a personal loan and managing it till the tenure is over can be a bit difficult because let’s admit it, situations are pretty uncertain and the borrower may never know when things go out of hand.
The lending organizations do not take any action against the borrower immediately. If only one payment has been missed then the financial institutions (banks and non-banking financial companies) charge a small delay or late payment fee calculated on the basis of the amount outstanding and the period for which it was overdue. In case a default has been made, the individual or entity will not be declared as a criminal immediately. They might be shifted to the list of loan defaulter and legal action may be taken against them.
The borrower can always go to the institution and request for re-structuring beforehand if he/she has a sense that they would not be able to keep up with the payments. SBI personal loan facility has the option of re-negotiation of terms for such cases. In case the default has been made already, the individual or entity who has borrowed ahs some rights. The rights are:
1. The right to be heard by the financial institution in case the payments have been omitted. The institutions can negotiate further actions with the borrower rather than going for harsh legal actions.
2. The right to receive an ample amount of notice period before the banks and non-banking financial companies can take any action against the defaulter.
3. The right to be treated in a humane way. A person who has defaulted should not be treated any less than other customers of the organization.
These are some basic rights that the individual and entities have even if they have missed out on a few payments of the personal loan. The defaulting individual or entity can approach the banks and convert their unsecured into a secured one by providing a collateral. By giving security the borrower can buy some time to cover for the dues. The borrower must keep it in their mind that defaulting can devoid them of getting credit in the future because of the damage the credit score and finances suffer.
Dialabank is India’s first financial helpline with services available in various cities. To know anything related to the personal loan, an individual or entity can easily go to Dialabank’s website, check out all you need to, and find the appropriate policy without any hassle.
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