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A personal loan is money lent to you by a lender for any of your expenses you can use the money lent for virtually anything without any restrictions of the bank. You can also use the money for more than one cause such as paying your medical bills, paying off credit card debt, or even go for that dream vacation that you have been planning for so long but never been able to go.

Also during this pandemic, a lot of people are facing a financial crisis from losing their jobs to salary cuts. Due to the unstable stock market, a lot of people have also been losing money on their shares. This crisis doesn’t seem to end soon so it might not be a viable option to just break into all your savings right now.

A Personal loan is of two types secured and unsecured. Secured loans come with collateral attached which the bank can sell if you are unable to pay the loan. Unsecured loans are without any collateral or security so they generally require a higher credit score to approve the loan. They also come with higher interest rates and short payback periods depending on your credit score.

You should always take loans as a calculated financial risk which you are sure you will be able to pay in the payback period. Although some expenses come as an emergency which you can’t afford upfront. At such times a personal loan can be a perfect option for you to meet your financial needs.

Debt consolidation is the most common reason personal loans are borrowed for. A personal loan makes all your high-interest credit card debts into one manageable payment which allows you to pay the debt back without getting overwhelmed.

A personal loan can be also great for home remodeling or repairs. Although house remodeling can be a luxury but repairs and painting come under maintenance which is required for a home to stay in good condition.

Punjab National Bank personal loan provides loans for salaried individuals, pensioners, doctors., and LIC agents as well.

Eligibility criteria for getting a loan with PNB.

  • The salary account should be with PNB.

  • More than two years of service for public sector employees

  • More than 5 years of service for LIC agents.

  • More than 3 years of service for private-sector employees.

  • The loan is provided to 15 times your monthly income with a maximum of 10 Lakh

  • A third party guarantor acceptable to the bank is required.

Term loan – 

  • A repayment period of a maximum of 60 months is provided. The repayment starts after 1 month of disbursement.
  • Interest rates range from 7.35% to 14% based on your credit score.
  • Documentation charges are 1350/- rs.

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