Personal loans can be a helpful financial aid during critical times. However, factors like age, occupation, and assets are typically considered when granting personal loans. Almost all banks in Kerala offer personal loans. Yet, before applying for one, it is essential to understand various aspects such as credit score, interest rate, loan terms, and repayment schedule.

Eligibility Criteria
Personal loans are granted based on specific eligibility criteria, including the applicant's age, income, credit score, and occupation. It is advisable to approach the respective bank to understand whether you qualify for a loan and to clarify any doubts.

Interest Rate
Before applying for a personal loan, it is crucial to know the interest rate offered by the bank. It is always better to approach banks that offer personal loans at lower interest rates. Avoid relying on private individuals or institutions that impose high interest rates.

Loan Tenure
The loan tenure varies depending on the amount borrowed and the bank's policies. Typically, personal loans can be repaid over a period of up to 60 months. Choose an amount and tenure that you can comfortably repay without financial strain.

Credit Score
Your credit score is a critical factor when applying for a loan. A higher credit score increases the chances of getting a loan at a lower interest rate. A score above 750 is generally considered good and improves your loan eligibility.

Fees and Charges
Understand the fees and charges levied by banks. These may include processing fees, pre-closure fees, and pre-payment fees. Make sure you are aware of all costs to avoid unexpected financial burdens.

Purpose of Loan
Personal loans can be used for various purposes, such as emergencies, celebrations, purchasing expensive household items, wedding expenses, starting new businesses, or expanding existing ones. Unlike other loans, personal loans are flexible and cater to a wide range of needs.

Beware of Fake Loan Apps
Incidents of people facing issues with fake loan apps have been on the rise. Avoid falling for such traps, even if the loans seem easily accessible. Fake online apps often lead to severe financial and psychological problems. Always opt for loans from trustworthy and reputable financial institutions.