A Simple Guide to Personal Loan for Women

A personal loan for women generally comes in handy on a large number of occasions, such as to procure funds for home renovation/ expansions, for medical emergencies, to attend to unexpected expenses, etc. For many women, especially single mothers, meeting even the minimal financial obligations can be a challenge.

This is especially true if they are saddled with both responsibilities of work and household care at the same time. In some countries like the US, it is almost impossible to survive without a college degree or a university scholarship. However, that does not mean that women cannot make ends meet. They can earn a modest income through a good job if they are willing to work hard.

Bajaj Personal Loan for Women

To assist women set up their travel, wedding, and different money desires, Bajaj Finserv offers a private loan to women, which comes with superb options and edges to settle on from. With this credit facility, the ladies will get instant approval and the fastest disbursals, thus will fulfill their varied desires in the best manner. Here are the details of personal loan for women.

Particulars	Details
Interest Rates	12.99% onwards
Tenure	12-60 months
Loan Amount	Up to INR 25 Lakh
Processing Fee	2.25% – 3% of the loan amount
Foreclosure Charges	4% on principal outstanding +GST
Part-prepayment	2% on part payment amount paid +GST

Secured vs Unsecured Loans

Here are the comparison between Secured Loan and Unsecured Loan:

• A personal loan for women may come in the form of a secured loan (e.g., a home equity loan), an unsecured loan (e.g., a credit card debt), or an Eat-in loan. The secured option can be availed at lower interest rates than an unsecured option.
• The interest rate on the unsecured loan will be higher if the loan amount is small. Also, in cases where the loan amount is too high, the repayment term will be elongated, thereby negating the overall benefit of the scheme.
• A secured loan is generally availed when the loan applicant has something to put up as collateral against the loan amount. Most often, this is some valuable asset, such as a car or some other valuable asset.
• This ensures that the loan applicant protects the lender in case of default. Thus, the interest rates on unsecured loans are generally quite high. On the contrary, a secured loan is offered at low-interest rates because the risk for the lender is reduced.

The Eligibility Criteria

• The minimum monthly income of an applicant must be at least Rs 27,000.
• The age should be between 23 years and 58 years of age.
• The personal loan should be a salaried individual.
• A personal loan for women, who are facing some financial difficulty because they do not have any creditworthiness or any collateral to offer. Such individuals need to fulfill certain eligibility criteria before they can apply for an unsecured loan.
• The eligibility criteria generally include not being bankrupt; not being a deserted father; not having filed any tax returns; not having any outstanding judgments against the person, and not being above 18 years of age. If you meet these requirements, you can still avail of the funds. Otherwise, you may have to pay a higher rate of interest.

Documents Requirement

• Salary slips
• Bank statement
• Employed ID
• KYC Documents ( identity proof, address proof)
• The documents required for the loan application form must be in the correct format. For example, if you want to avail of a personal loan, you must provide the correct proof of income documents. Otherwise, the lender may reject your application. The other documents required for loan approval are the employment contracts or salary slips and bank statements.
• If you want to buy a car with the money from the loan, you can mention the name of the bank where you have already deposited your paycheck.

How to Apply?

In case you do not have a bank account, you can apply online for an unsecured loan. All you have to do is fill up an online application form. The lender will verify the details provided and then process the loan application. Most lenders will process the loan application without requiring you to fax any documents.

Government Personal Loan Schemes for Women

There are two instant personal loan government schemes for women.

• Mudra Yojana
• Udyogini scheme

Conclusion

There are different types of personal loan for women. You can get a secured personal loan from banks and financial institutions or an unsecured loan from money lending agencies and banks. The rate of interest for both types of loans varies with the type of institution from where you are opting for the loan. However, you can rest assured that the interest rate on personal loans in India is very reasonable.