Introduction
A multi purpose loan helps when you need money for personal use. It covers expenses under a single loan. So, you can use it for health bills, wedding costs, home repairs or other needs. All you need is to apply online and get money in your account on the same day. It is a speedy method that needs minimum paperwork alongside a low personal loan interest rate. This loan is for people who wish for a seamless way to handle their expenses without delays.
What is a Multi Purpose Loan?
A multi purpose loan is an unsecured personal loan that helps you manage different expenses like medical bills, home repairs, or travel. You don't need to pledge any assets. The tenure or interest rates depend on your creditworthiness as well as your income. Reputed lenders may offer a loan ranging between ₹10,000 and ₹2,50,000 with seamless repayment plans.
Features of Multi Purpose Loan
This loan comes with useful features that make it easy to borrow money when you need it most.
1. No Collateral Needed -You don't have to give any security like gold or property to get a multi purpose loan.
2. Fast Online Process -You apply on the website or app and get approval quickly without visiting any branch in person.
3. Flexible Loan Amount -You may borrow between ₹10,000 & ₹2,50,000 depending on your income & needs.
4. Minimum Documents -You only need your basic ID proof alongside address as well as income proof. Some bank details are required to complete your loan application.
Benefits of Multi Purpose Loan
Opting for this loan helps you handle both urgent as well as planned expenses with ease. Here are the benefits:
1. Low Interest Rates -The loan comes with competitive interest rates. It helps reduce the total cost of your borrowing.
2. Fast Disbursal -Get the money quickly after approval so that you can cover urgent or planned expenses without delay.
3. Simple Repayment -You should pay in monthly instalments with repayment terms that suit your salary as well as your monthly budget.
4. Higher Loan Amount -Borrow up to ₹2,50,000 so you can manage larger expenses without your savings.
How does Multi Purpose Loan work?
A multi purpose loan works in a few simple steps. The following are the steps on how you can get funds quickly without a long waiting time.
1. Apply Online Easily -Fill out your form on the app or website. Share your income details & PAN, Aadhaar. It helps check your basic personal loan eligibility within minutes while saving time.
2. Quick Loan Decision -Once you submit your application, the lender checks your details using its credit system. It gets decided based on your salary & credit score. The process usually takes a few minutes when all documents are in order.
3. Money Sent to Your Bank -After approval, the loan amount is sent directly to your bank account. You don't wait long. Many borrowers receive their money within 30 minutes. This helps during emergencies or when you have a sudden financial need.
4. Repay in Monthly Instalments -You repay the loan in fixed EMIs every month. You choose the repayment period that suits your salary. The EMIs stay the same, which helps you plan your money better without surprises.
5. Use for Any Expense -You can use the money for medical bills, education, travel, home needs, or anything else. You don't need to explain or give proof of where the money is used.
Interest Rates of Multi Purpose Loan
Here are the things you should know about the interest rates of a multi purpose loan:
1. Range - Interest rates for a multi purpose loan usually range between 12% & 36% per year.
2. Key Aspects -The rates usually depend on your income, loan amount, and the time you select to repay.
3. Credit Score Benefit -You may get a lower interest rate offer if you have a high credit score alongside stable income.
4. Different Rates from Different Lenders -NBFCs, banks, and fintech lenders use different ways to set interest rates & check loan risk.
5. Always Compare -You should always compare rates & the total costs from more than one lender before applying to make a better choice.
Fees and Charges of Multi Purpose Loan
Here are the fees & charges of the multi purpose loan:
1. Processing Fee - This fee is between 1% and 5% of the loan and is charged during approval.
2. Stamp Duty Charges - It is a government-imposed charge on loan documents.
3. Part or Pre-Payment Charges -Some lenders may charge a fee when the borrower settles a loan or a part of it before the loan period or due date.
4. Conversion Fee - If you change your EMI plan, you may pay 1% to 5% of that amount.
5. Foreclosure - If you repay early, you may pay 5% of the loan unless paid after the first due date.
6. Mandate Return Fee - If your EMI payment fails, a fee of ₹500 (including GST) will be charged for that month.
Eligibility Criteria for Multi Purpose Loan
To apply for a multi purpose loan, you must meet these basic rules set by lendingplate.
1. Age Requirement -You must be 21 years old or older.
2. Monthly Income -You need at least ₹20,000 income every month.
3. Employment Type -You must be salaried with stable monthly earnings.
4. Credit Score -A good credit score improves your approval chances.
5. Residence Proof -You must be an Indian citizen with address proof.
6. Work Experience -You should have one year of experience in your current job.
Documents Required for Multi Purpose Loan
To apply for a multi purposeloan, you only need to upload a few basic documents.
1. Proof of Identity -Submit Aadhaar, PAN card, passport, or licence.
2. Proof of Address -Upload utility bill, Aadhaar, or rental agreement.
3. Proof of Income -Show salary slips or latest ITR documents.
4. Recent Bank Statements -Upload the last three to six months' statements.
5. Passport Size Photo -Upload your latest passport-size colour photo.
Common Uses of a Multi-Purpose Loan
A multi purpose loan helps you cover different needs without applying for separate loans each time.
1. Repairing or Renovating Your Home -Fix leaks, paint walls, remodel your space or upgrade furniture without disturbing your monthly savings or plans.
2. Travel Plans -Cover flight tickets, hotels and local travel with ease, whether it's a holiday or a family trip.
3. Vehicle Expenses - Pay for repairs or even purchase a used vehicle without dipping into your emergency or monthly budget.
4. Healthcare Expenses -Handle hospital bills, tests or sudden treatments without delay so you can focus only on recovery.
5. Debt Payment -Merge credit card dues or old loans into one EMI, helping you repay in a more organised way.
6. Education Costs - Pay for tuition, books, or course fees easily when you or your family need better learning support.
7. Business Needs - Buy tools, handle payments, or manage operations when your small business needs a financial push quickly.
8. Wedding Arrangements - Use funds for venue, catering, clothes, gifts, etc. when planning for your or a wedding.
9. Significant Purchases -You can buy electronics, furniture, or household goods with ease when you do not want to use your savings.
10. Emergency Scenarios -Meet costs during job loss, family illness, or other sudden money needs without borrowing from many places.
Repayment Terms for Multi Purpose Loan
Here are the repayment terms for multi-purpose loans:
For exp. 90000 loan Tenure (months) | EMI Example | Interest Rate |
5 | ₹18,544 | 12% |
10 | ₹9673 | 16% |
12 | ₹8510 | 24% |
15 | ₹7269 | 30% |
Also Read:Personal Loan Tenure - Minimum and Maximum Duration
How to Apply for a Multi Purpose Loan?
Getting a multi purpose loan is quick, simple, and done fully online.
1. Visit the Website or Download App -Use lendingplate's site or app to begin your loan application.
2. Enter Your Mobile Number -Submit your number and confirm it with the OTP sent instantly.
3. Fill in Basic Details -Enter your PAN, income, job type, and other required information.
4. Upload Required Documents -Upload your Aadhaar/PAN, salary slips, or recent bank statements easily.
5. Check Loan Amount and Tenure -Select how much you want to borrow & the repayment period.
6. Get Instant Approval and Disbursal -The loan amount is sent directly to your account once verified.
Factors to Consider Before Opting for a Multi Purpose Loan
You should think about a few important things before applying for a multi purpose loan. At first, you need to check how much money you need & for what reason. You should always borrow only what you can repay without stress.
It is important to consider your monthly income before choosing the loan tenure. Read all the fees like personal loan processing fees, interest rate, and foreclosure charges. Check if your salary and credit score match the loan conditions.
You should ensure that the EMI amount is something you can pay on time every month. Also, note that missing payments may impact your credit score while costing you more.
Use the personal loan EMI calculator to check your monthly charges. Know the total cost before you agree and then apply for the loan accordingly.
Why Consider a Personal Loan as a Multipurpose Loan?
A multipurpose instant personal loan works when you need money for many reasons without applying for separate loans each time.
1. No Usage Limit -You can spend the money on anything you need—education, travel, home repairs, or medical emergencies anytime.
2. No Collateral Required -You do not need to give gold, property, or savings as security when you take this loan.
3. Simple Process -You can apply online in minutes with basic details. All you need is to upload personal loan documents & get money directly into your account fast.
4. Easy Repayment -You may select how long you want to repay.
Conclusion
A multi purpose loan is a simple way to manage your money needs without long delays or hard steps. You can use it for medical bills, travel, home repairs, or any personal reason. lendingplate helps you apply online with a few documents and gives quick approval. You choose how much to borrow and how long to repay. The loan comes with fixed EMIs & fair interest rates. You can use it wisely by repaying on time and keeping your credit score strong for forthcoming needs.
Frequently Asked Questions (FAQs)
Q.1. What can I use a multi-purpose loan for?
You can use a multi purpose loan for personal needs like home repairs or medical bills. The loan can also be used for travel or education. There are no restrictions on how you spend the loan amount. You don't need to give proof of your usage. So, this type of loan is a flexible & easy loan option.
Q.2. How much money can I borrow with a multi-purpose loan?
You may borrow any amount between ₹10,000 & ₹2,50,000 through a multi purpose loan. Select a loan amount that suits your needs or repayment ability. Borrowing wisely helps you stay on the right track while avoiding payment delays later.
Q.3. Can I use a multi-purpose loan to combine other debts?
A multi purpose loan is useful for combining high-interest debts such as credit cards or multiple small loans. You can take one loan to cover them all. Many people choose this option to reduce stress while managing the monthly payments accordingly.
Q.4. What is the interest rate on a multi-purpose loan?
The interest rate for a multi purpose loan usually ranges between 12% and 36% per year. The rate you receive depends on your credit profile, income, loan amount, tenure, etc. A higher credit score often leads to a lower rate.
Q.5. Is there a processing fee for a multi-purpose loan?
lendingplate charges a processing fee when you take a multi purpose loan. This fee ranges from 1% to 5% of the loan amount. It is either deducted from the loan amount or added separately based on approval. The exact charge depends on your loan size.
Q.6. Can I get a multi-purpose loan with a low credit score?
It can be harder to get a multi purpose loan with a low credit score, but it's not impossible. lendingplate may still offer you a loan, but at a higher interest rate or smaller amount. Improving your score by paying EMIs on time helps. Repay on time to build your score for better future loan chances if approved.
