To avail of a personal loan, you must have a regular income source, whether you are a salaried individual, self-employed business person or a professional.
You don’t usually need to pledge any security or collateral while availing a personal loan and your lender provides you with the flexibility to use the funds as per your need.
Equated Monthly Instalments make the idea of loan simpler. Personal loans too offer easy EMI facilities and help you re-pay the principal amount over the tenure.
With an improvement in standard of living, the desire for a luxurious and comfortable life is growing in every heart. Therefore to meet personal needs, the concept of personal loan has been established.
A personal loan is a type of unsecured loan and helps you meet your current financial needs. You don’t usually need to pledge any security or collateral while availing a personal loan and your lender provides you with the flexibility to use the funds as per your need. It can serve as your solution for managing your travel costs and wedding expenses as well as the expenses of a medical emergency, home renovation, debt consolidation and others.
Purpose of Personal loan
It can be used for any personal financial need and the bank will not monitor its use. It can be utilised for renovating your home, marriage-related expenses, a family vacation, your child's education, purchasing latest electronic gadgets or home appliances, meeting unexpected medical expenses or any other emergencies. Personal loans are also useful when it comes to investing in business, fixing your car, down payment of new house, etc.
Eligibility Criteria
Although it varies from bank to bank, the general criteria include your age, occupation, income, capacity to repay the loan and place of residence. To avail of a personal loan, you must have a regular income source, whether you are a salaried individual, self-employed business person or a professional. An individual's eligibility is also affected by the company he is employed with, his credit history, etc.
Benefits of Personal Loan
1. No security or collateral is required
Being an unsecured loan, there is no collateral of any asset required. It is offered on the basis of your credit history and repayment capacity.
Less documentation
Many abhor applying for personal loans due to lengthy documentation process. But personal loans are approved with minimum documentation.
These days it takes few hours for loan disbursement. If bank feels that you have the capacity to re-pay the loan within the stipulated time and need loan for genuine reason then getting a personal loan disbursement is easy.
Personal loans offer loan tenure ranging from between 1 year to 5 years. So you have the flexibility to choose your tenure as per your repayment plan. Best is to opt for a lower tenure loan and save on the interest outlays.
Equated Monthly Instalments make the idea of loan simpler. Personal loans too offer easy EMI facilities and help you re-pay the principal amount over the tenure.
Unlike home loan or car loan, personal loans can be availed to meet almost all aspirations.
Documents required for Personal Loan
Some of the basic documents required for Personal Loan are as below:
These documents along with the Personal Loan application form and few photographs need to be submitted to your lender.
These days many banks and financial lending institutions offer online loan application facility as well. You must check these and apply for the best suitable option.
Once the Personal Loan is sanctioned, duly signed loan agreement copy will be sent. You also need to provide a standing instruction request / ECS mandate form and security deposit cheques are to be provided
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