21 MAY, 2020

Thanks to the internet, we are learning so many things about our world. Whether it is a tiny exotic island in the Pacific Ocean or mysterious South American countries, the internet has surely provided fascinating information to us. We see pictures and videos about these places and start making our own bucketlist. Nowadays, everyone one of has listed out the things we dream and want to do it before reaching a certain age.

From climbing the Mount Everest to diving into the Great Barrier Reef, a bucketlist of any individual can include literally anything he/she loves to do. Sure they sound thrilling, however many things on bucketlists often come with an expensive price tag. Many people worry that their bucketlist seems impossible with their current income. If you are one of such people, then let us tell you about the amazing option you can use to complete your bucketlist - Personal Loans.

What are Personal Loans?

A personal loan is a type of loan that do not require any type of security or collateral. Banks or non-banking financial companies lend personal loans solely on the basis of your credit history and credit score. Personal loans are considered unsecured types of loans. Lending organizations offer varying interest rate on a personal loan based on various factors such as individual income, credit score, etc.

A personal loan serves as a travel loan or marriage loan as there are no restrictions on its usage. You can use the loan amount you obtained from a personal loan as per your wish. This means you can spend on a vacation or even on your wedding. In a way, a personal loan provides the required financial help to complete your bucketlist.

In order to avail a personal loan to complete your bucketlist, you are required to fit in the eligibility criteria for it. Banks and NBFCs have specific guidelines regarding availing personal rules, however, the following seven factors are commonly considered by them,

  • Your financial stability to evaluate your repaying capacity.
  • Your credit score to evaluate your creditworthiness.
  • Debt-to-income ratio to check the percentage of your income that you can use to pay the EMIs of loan.
  • Recent payment history.

Although the applications of a personal loan are generally accepted by the bank, there are cases of rejection too. You need to note that a personal loan is not a secured loan product, thus banks are cautious while providing it. They thoroughly check your credit report to confirm that you have not missed or delayed any payments in the past.

Lastly, a personal loan is a fantastic tool that you can use to complete your bucketlist. They make you financially able and let you live your dreams.

Read more to know about the best ways of making use of personal loan here.

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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.