Personal Loan Requirements: What Is Personal Loan?
Whether it for paying for higher education or your childrens wedding
, home renovation or exotic holidays overseas, money plays an essential role at every stage of life. If someone is not able to raise the cash for such occasions, they usually prefer getting loan from a reputed finance company or bank. There are various types of loans that are provided by various banks at fixed or flexible interest rates as per their financial policy. Among various types of loan, personal loan is chosen by many consumers who need money urgently.What is it?
Personal loan is a type of unsecured loan which is provided by the bank solely for the sake of personal usage. One can apply for this type of loan if they need urgent money for various expenses including home improvement, major domestic purchases, foreign travel, wedding or medical emergencies. Once borrowed, money is required to be paid at a fixed interest rate over a flexible predetermined tenure.
This type of loan is totally different from a long term finance loan or business loan. You can easily get personal loans in India, if the banks believe that you can repay the loan. The highpoints of this loan is that you dont need a guarantor or any security for this type of loan. You can get ready money which can be used for any purpose that you want.
Types
Most basic personal loans in India include secured loan and unsecured loan. For secured loan, you need to pledge some property or asset as collateral for the amount to be borrowed. For unsecured loans, you neednt pledge any asset or property; nor do you need to present any guarantor. A personal loan is available at long-term and short-term tenures. Short-term loans are highly preferred by most applicants. In case of short-term loan you need to pay high interest rate.
Highlights of personal loans in India
Borrow from INR 50,000/- to INR 20,00,000/- depending on requirements.
Minimum eligibility age starts from 21 years.
No need of a guarantor/security.
Fixed rate of interest throughout the tenure of the loan.
Repay the money with simple EMIs (Equated monthly Installments).
Basic documentation: address proof, identity proof, residence proof and 3-6 months bank statements. Salary slips and Form-16 for salaried aspirants.
Eligibility
The eligibility criterion for personal loan changes from one lender to the other. However, nearly all the banks and finance lenders offer money to salaried individuals and self-employed professionals alike.
Salaried professionals: Government employees, teachers, banks employees, private employees, and all those receiving salaries on a monthly basis.
Self-employed individuals: Doctors, lawyers, chartered accountants, landlords, and all the individuals earning individual income.
Also keep the following points in mind:
Salaried professional age limit ranges from 21 years to 60 years.
Salaried professionals should have minimum INR 15,000/- net salary per month.
Self-employed individuals can apply for this type of loan should be in the age group of 23 to 65.
Some lenders require that the applicant should be living at the same address and working at the same organization for at least 1 year before applying for a loan.
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