Personal Loans are short term credit and meant for only a few years. The interest rates are high for personal loans in Jamaica as most loans do not need collateral on the part of the loan applicant. This kind of loan comes under the high-risk category for the bank and thus the interest rate charged is high and the loans are given out only for a short period of time. The specific need for the loan need not be mentioned in the contract as the bank does not exactly keep a tab on how the funds are spent by the loan applicant.
The funds thus gathered from these loans are received from the bank in a matter of days. The amount of funds that the person will receive from the bank depends on the current income scenario of the individual. The bank has to after all make sure that whether the person they are extending their credit to has the ability and capabilities of paying the funds back. The banks always try to reduce their NPA’s or Non Performing Assets as far as possible and try to keep the percentage as low as possible. Also if the individual who has received the loan lapses or defaults on his/her payments then the headache of the payments and recovery falls on the banks which results in delayed payments and also more expenses on the sides of the bank as well.
These problems are taken care of easily by HDFC Personal Loan as they take every personal loan application on a case by case basis and look into the requirements of the clients and the financial stability of their lives before granting them credit. Also, the bank believes in completing the formalities of granting loans as fast as possible. In this the bank can complete and accept as many loan applications as possible and also the applicant also gets the credit required in time and without any wastage of time either on the bank’s part of the customer.
However personal loans have a dark side as well with the banks taking various extreme measures to recover their investments and also making sure that the payments are made on time. There have been instances where the individual has been beaten up and their assets snatched from them. Their cars are taken away sometimes and their houses ransacked. Some banks do this and some don’t and thus it is always safer to take the loans when one is able and completely capable of paying back the loan amount and very importantly paying back the loan amount on time. HDFC Personal Loans takes special care that their client does not have to face such difficulties and grant loans to only those who they are pretty sure are capable of paying back.
Personal Loans are borrowings, a given amount of money taken as a loan from any financial institutions offering such loans for any personal use. The specific purpose of acquiring the loan and where will the funds be spent are not mentioned in the contract. The person who has taken the personal loan can use the money for almost anything. Certain expenses such as gambling and some other illegal activities are not allowed. The amount can be used for a vacation, buying an automobile, buying electronic items, and for debt consolidation. A personal loan is a financial instrument that gives the common individuals the financial ability to make purchases while gathering and saving funds for payment of the personal loan later.