The money that is borrowed from a financial institution for any personal use (not professional or business) is referred as a personal loan. Comparing to other larger and long-term loans, a personal loan is taken for relatively short to medium terms. Usually personal loans are availed to pay for some one-time or short term expenses where a borrower doesn't normally require disclosing the specific reason for the loan. This type of loan is used by many to resolve their current financial needs. A personal loan is generally taken for a period of one to five years. Also these require lowest formalities and no collateral or security. It is a type of unsecured loan which can be availed on the basis of various eligibility criteria. Level of income, employment history, credit score and scope for repayment are those specific criteria. Considering these criteria assed by the lender, the APR (Annual Percentage Rate) of personal loan can be kept anywhere between 11.29% to 35%.

Why should you take Personal Loan ?

At some point of time in everyone's life they urgently need a specific amount of money which can't be covered by own savings. The amount can be needed for any personal reason like home renovation or vehicle repair, to pay unexpected medical bills, for wedding, travel, credit card outstanding balance transfer etc. This is where the personal loan is considered a good option for getting this desired amount.

What are the Features & Benefits of a Personal Loan ?

  • They have easy availability:
  • The main reason behind the popularity of personal loans is untroublesome availability. The personal loans can be acquired within 24 to 48 hours of loan application and submission of required documents. Almost all banks offer personal loans to its customer thus making it easily accessible.

  • They need minimum documentation:
  • Unlike the other long term or larger loans, personal loans require very little documentation. Thus these loans are approved quickly without any hassle.

  • You can get pre approved offers:
  • In most cases, the bank where you have an account will provide you with pre approved loan offers. You can claim these offers and get the loan amount within your account in a matter of few minutes*. The amount will range from bank to bank. This process is the fastest of all.

  • You get expeditious loan approval
  • The mechanism of approving personal loan is very easy, efficient and hassle free. When it comes to online personal approval, they can be approved quickly where as the paper approval takes not more than 1-3* working days depending from Bank to Bank.

What is the Eligibility to avail Personal Loan ?

Banks offer personal loans to customers who fulfill their designed eligibility. The eligibility criteria changes from bank to bank and the profile of the borrower. But there are some commonalities which you have to follow or acquire to get a personal loan from any bank. Banks give personal loans by dividing their customer's profession and their income history. You can refer the following table for a gross understanding of bank's eligibility criteria:

  • Eligibility For Salaried Borrower*
  • AGE: 21 years to 60 years
  • INCOME: Rs. 15,000/- (Rs. 20,000 in metro cities)
  • Minimum Loan Approval: Rs. 75,000/-
  • Maximum Loan Approval: Rs. 15,00,000/-
  • Loan Tenure: 12 to 72 Months
  • Eligibility For Self-Employed Borrower*
  • AGE: 23 years to 60 years
  • INCOME: Rs. 24,00,000/- Turnover (minimum)
  • Minimum Loan Approval: Rs. 75,000/- to Rs. 3,00,000/-
  • Maximum Loan Approval: Rs. 15,00,000/- to 20,00,000/-
  • Loan Tenure: 12 to 48 Months
*The eligibility criteria differ from bank to bank. The above details are generic, not specific.

What are the Documents Required to avail Personal Loan ?

  • Required Documents For Personal Loan*
  • Identity Proof: Passport, Driving License, Voters ID or PAN Card
  • Address Proof: Passport or fresh Utility Bill
  • Income Proof: Salary Slip/Form 16 (for salaried) | Income Tax Return + Profit & Loss A/c (for self-employed)
  • Other Documents: Highest Educational Certificate/Degree
  • *The list of documents differ from bank to bank. The above details are generic, not specific.
To Apply Your Personal Loan Fill the Application Form Below👇

No comments: