Personal loans
Personal Loans are a popular Financial tool in India, providing individuals with the means to meet their immediate Financial needs and aspirations. Whether you’re planning a wedding, need to cover medical expenses, or want to consolidate debt, PL can be a versatile solution. In this comprehensive guide, we’ll delve into every aspect of personal loans in India, helping you make informed decisions and manage your Finances wisely.
Why Choose a Personal Loan ?
Personal Loans have gained immense popularity in India for several reasons:
Versatility
You can use the loan for various purposes, including weddings, medical emergencies, travel, debt consolidation, or any other personal need
Quick Approval
PL often have faster approval processes compared to other Loans, making them ideal for unexpected expenses.
No Collateral
Unlike Home or Auto Loans, PL’s are unsecured, meaning you don't need to pledge any collateral.
Fixed Repayment Schedule
Personal Loans come with fixed repayment schedules, making it easier to budget your Finances.
Competitive Interest Rate
Interest rates on PL have become more competitive, especially with the advent of digital lenders.
Online Application
You can apply for a PL from the comfort of your home, thanks to online application options.
Types Of Personal Loan ?
Secured Personal loan
Secured PL’s, on the other hand, are backed by collateral. These loans typically have lower interest rates as the lender has a guarantee in the form of the collateral, which could be your property, FD, or other valuable assets.
Unsecured Personal Loans
Unsecured PL’s are the most common type. They don't require collateral, which means you don't need to provide any asset as security to obtain the loan. Lenders assess your eligibility based on your creditworthiness, income, and repayment capacity.
Short-Term and Long-Term Personal Loans
Personal loans come with varying tenures, which can be categorized as short-term and long-term Loans. Short-Term Loans usually have tenures ranging from a few months to a couple of years, while Long-Term Loans can extend to five years or more.
Application Process, Eligibility and Documentation.
Eligibility Criteria
- Age : Between 21 and 60 years of age.
- CIBIL Score: A good credit score is often a requirement for loan approval.
- Employment Status : Lenders prefers who are salaried or self-employed.
Application Process
- Banks: Traditional Banks offer reliability and established credibility.
- NBFCs: NBFCs often provide quicker loan disbursal with relaxed eligibility criteria.
Documentation Required
- Identity proof (Aadhar card, passport, PAN card)
- Address proof (utility bill, rental agreement)
- Income proof (salary slips, bank statements)
- Passport-size photographs
- Duly filled Loan Application Form