A personal loan is a multipurpose loan that can be obtained from the banks without many questions from the banks, this loan helps to fulfill personal needs. Be it you are wedding or a vacation, house renovation, or to buy a bike as a gift or debt consolidation, you could plan to get a personal loan from the bank to take care of all the personal needs.
What are the Features of Personal Loan?
Interest Rate- As personal loan is an unsecured loan, it comes with higher interest rates compared to the other loans. But due to the increasing competition in the market, you could choose the best bank that offers less interest rates.
Repayment: Personal loan repaying is very easy as offers flexible methods to repay the loan by online payments or post-dated cheques, etc.
Minimal Paperwork: When compared with the other loans, banks approve personal loans very quickly, most of the banks process the loan request for a personal loan within 48 hours.
Tenure: Personal loan tenures are very flexible too, usually, the banks provide the tenure of 1-5 years, now the consumer has maximum time to pay the loan at the equal installment
Loan Amounts: The loan amount will be as low as Rs 20,000/- and maximum Rs 20,00,000/- be it a salaried or self-employed person, this is the minimum and the maximum amount you could get for the loan.
No Collateral: No collateral needed and it's not necessary to possess property, to get a personal loan.
What is the Eligibility for Personal Loan?
| Category | Salaried Person | Self-Employed Person |
|---|---|---|
| Age of Applicant | 21 Years | 25 Years |
| Experience | 1 year | 3 years (Business) |
| Income | Min. Monthly Rs 17,500/- | Professional - Above INR 2 Lakh Non - Professional - Above INR 1 Lakh |
What is the document required to apply for a Personal Loan?
Documents required for Salaried Person
- 2 Photos
- ID Proofs
- PAN
- Residential Proof
- Ownership
- Utility Bill
- 6 months of banking documents
- 3 months’ salary slips
Documents required for Self-employed
- 2 photos proofs
- PAN
- Residential proof
- Ownership
- Utility bills
- 1-year banking'3 years ITR
- Business proof (Tin/Service Tax/Company Profile)
What is the process of applying for Personal Loan?
- Step 1- Fill the loan application form
- Step 2- Submit all the required documents in the bank
- Step 3- Get approval for the loan
- Step 4- Execute the agreement
Check the Loan Repayment Schedule
- EMI - Estimated Monthly Installment/Equated Monthly Installment
EMI = (PR/12) [ (1+R/12) ^N]/[(1+R/12) ^N-1]
Where: P= Principal (Loan Amount) R = Annual Interest Rate N = No. of Monthly Instalments
- Amount
- Number of installments
- Interest Rate and type.
Compare the following attributes before applying for a Personal Loan
- Check all the existing schemes
- EMIs
- Interest Rates
- Processing Charges
- Prepayments
- Check your CIBIL Scores
Bottom Line
If you are looking for urgent money then the personal loan is one of the best options to fulfil personal needs the personal loans are the best option as it offers flexible tenure, minimal documentation and easy approval and it can be availed for any purpose.