Features and Benefits of Personal Loans:
Personal loans come with no restrictions on how the funds are used.
The loan amount can go up to Rs. 40 lakhs, or even higher based on the discretion of the lenders.
Repayment tenure can extend up to 5 years, with some banks/NBFCs offering longer durations.
Minimal documentation is required to apply for a personal loan.
Quick disbursals ensure fast access to the funds.
Individuals with excellent credit profiles may qualify for pre-approved or pre-qualified personal loans, which come with instant disbursal.
Eligibility Criteria for Personal Loans:
Age: 21 - 60 years
Income: Minimum Rs 15,000/month for salaried applicants
Credit Score: Preferably 680 and above as having higher credit scores increase the chances of your loan approval at lower interest rates
Covai Loans isn't a lender itself but connects borrowers with different lending partners. These partners offer personal loans with varying APRs, typically ranging from 11.29% to 35%. The actual rates may depend on the borrower's financial situation and loan requirements.
Loan terms usually range from a few weeks to a maximum of 60 months (5 years), but they can vary between lenders. It's important for borrowers to carefully review the loan agreement provided by the lender before accepting any offers. This agreement includes the final APR, fees, and specific terms and conditions, ensuring borrowers understand their financial obligations.
Assume you have availed a personal loan of ₹5,00,000 lakhs @ 11.50% p.a. with a repayment tenure of 5 years. The processing fee charged for this loan is 1.5% of the loan amount, i.e. ₹7,500. Therefore, the APR for your personal loan will be 12.16%. The EMI will be ₹10,996.
Principal Amount: ₹5,00,000
Interest Charges (@11.5%): ₹1,59,778
Loan Processing Fees (@1.5%): ₹7,500
EMI per month: ₹ 10,996
Total Amount paid after 5 Years: ₹ 6,67,278
*Interest rate and processing fees varies as per your product depending on the lender's policy.
