Personal Loan

Personal Loan

A personal loan is an unsecured loan that is not backed by collateral or security. This makes it a flexible financing option, as there are no limitations on its use.

A Personal Loan is a great boon when you need money without too much of a hassle or borrowing from friends or family. Whether it’s for medical expenses or a wedding, foreign travel or study abroad fees, home renovation or short-term cash, you can get a Personal Loan quickly and easily. A Personal Loan is convenient because you can repay it over a period of time in pocket-friendly instalments and you can get quick disbursal.

Features and Benefits of Personal Loan

Here are some of the key advantages of Personal Loans.

• Free to use the funds for any purpose:One of the biggest advantages of Personal Loans is that you can use your funds for any purpose you like – be it a wedding, a holiday, a gadget, business investment, home renovation etc. A Home Loan or a Car Loan must be used for the purpose that you borrow it.

• No need to provide collaterals against the loan:Personal Loans are unsecured loans – this means you do not have to mortgage collateral such as your home or shares to get the loan.

• Easy documentation:The paperwork and the processing time required for a Personal Loan is much lower than for most other loans. You can get a loan with the following documents: ID proof, address proof and income proof.

• Pocket-friendly repayment:You can pay off your Personal Loan in easy installments or EMIs. The payment terms are usually flexible, and you can choose a tenure that allows you to optimize your monthly outgo according to your needs.

Loan Eligibility

Personal Loan Eligibility Criteria

To qualify for a personal loan, you have to meet certain criteria. Below are the important factors that lenders take into consideration to decide your eligibility for a personal loan.

Age should fall under the range of 21 years to 60 years

Net monthly income should be a Minimum of 15,000/ for salaried and self-employed, yearly transactions should be a minimum of 20 lakhs

Credit score must be above 650

Debt-to-income ratio

Employment stability

Maintained a good credit score

Clear repayment history

Must be a Resident Citizen of India

Documents Required

Documents required to apply for Personal Loan

• Identity Proof -Passport, Voter’s ID, Driving License, PAN Card, Aadhaar Card

• Proof of Residence or Address Proof - Passport, Voter’s ID, Driving License, PAN Card, Aadhaar Card, Electricity Bill, Telephone Bill, Ration Card

• Age Proof - Passport, Voter’s ID, Driving License, PAN Card, Aadhaar Card

• Income Proof -3 months Salary Slips, 1 year Bank statement. 2 Years form 16 ( if loan amount above or equal to 10 lac)

• Employment Proof -Employment Certificate, Office address proof

• GST or VAT Registration for Self-employed

• Photograph -Passport-size photographs

• Business proof -Business registration documents such as a partnership deed, Memorandum of Association (MOA), Articles of Association (AOA), etc.

• Income tax returns –Documents of the past 2-3 years to verify income and tax payment history

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