Personal Loans – Security and Loan Disbursement
One of the most commonly asked questions is that whether there is any collateral or security required for a personal loan. The personal loans are designed for those people who do not prefer going through the hassles of offering a security or experience a lengthy legal documentation involved in the process. The personal loan is a totally unsecured loan that does not need any form of collateral or guarantee. There are some lenders that may ask for a guarantor in certain special cases such as in those cases of IT professionals that travel overseas frequently.
The repayment of a personal loan is done by issuing post-dated cheques for the complete duration of the loan. These cheques are prepared in the name of the lender. The amount of the EMI or equated monthly instalments is the same as the amount of the post-dated cheques. There are some lenders that allow you to repay by following the standing instructions on your bank account or by directly deducting the amount at a source from your salary each month.
The time period of receiving your loan money varies from lender to lender. Usually the lenders promise to offer the loan within seven working days. In case, you would like to avoid any further delays, then you should keep all the necessary documents ready such as the post dated cheques (PDC). The banks from where you ask for your PDCs take at least a day or two’s notice for offering you the cheques. After the submission of all the required documents, the loan is disbursed. Once your lender approves your personal loan amount, the disbursal of the loan is done either by cheque or draft. There are many government owned banks that require you to visit the nearby branch for receiving the loan. In addition to this, there are many private and foreign owned lenders that offer the loan amount at home with their Direct Sales Associate network.
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