Many banks and financial institutions offer a personal loan without the requirement of collateral being used as the security for the loan. These loans are unsecured, so the rate of interest for these loans is usually high compared with other loan schemes. Several banks charge fees for personal loans and The money borrowed by the applicant must be paid overtime and typically with interest.
Personal Loan eligibility and EMI calculators are available online to check one’s ability and probability of approval in the selection process. The EMI calculators can help in estimating the amount that needs to be paid by a person based on details like tenure of the loan, loan amount that needs to be borrowed, and rate of interest charged by the lending bank.
Where you can find personal loans?
You can apply for a personal loan from your current bank and credit unions. You can also apply for a loan online as many lenders provide loans through online mediums. If you apply for the personal loan through online mode then you get a decision in few minutes and, in some cases, get funding in as little as 24 to 48 hours after your loan gets approved from the Bank.
It has become easy to apply for Loans nowadays, Several options are available for the application process of loans. These options can be discovered through both online and offline modes. Applicants should pay attention while comparing the loan schemes especially online. Some factors affect the loan application for a Personal Loan.
Here are few things that should be considered before the application process of a personal loan-
1. The rate of Interest rate.
2. Fees charged by the lending bank.
3. Repayment terms offered by the lending bank.
4. Borrowing limits (minimum and maximum) offered by the lending bank.
5. The requirement of collateral (if any).
Eligibility criteria
The personal loan amount that you get from the lender depends on your salary, age and city of residence, and other eligibility criteria. Few extra criteria can be imposed as per the guidelines of the Bank or the financial institution. Personal Loan interest rate also varies according to the Bank you wish to apply for the Personal Loan.
How you can qualify for a personal loan in India?
1. You should be a residing citizen of India then only you can apply for a personal loan.
2. Your age should between 23 to 55 years to apply for a personal loan.
3. You should be self-employed or employed by a government or private limited company.
Some of the popular bank schemes for personal loans offered in India are as follows
1. State bank of India personal loan schemes.
2. Bank of India personal loan schemes.
3. Bank of Baroda personal loan schemes Axis Bank Personal Loan schemes.
4. HDFC Personal Loan schemes.
5. Punjab national bank personal loan schemes.
6. ICICI Bank personal loan schemes.
Documents required for personal loans
1. Identity proof (copy of passport/voter ID card/driving license/Aadhaar) of the applicant.
2. Address proof (copy of passport/voter ID card/driving license/Aadhaar) of the applicant.
3. Bank statement of previous 3 months (Passbook of previous 6 months) of the applicant.
4. Two latest salary slips/current dated salary certificates with the latest Form 16 of the applicant.
5. Few Passport sized photographs of the applicants.
6. Documents of employment of the applicant.
7. Credit Score of the applicant.
Some Banks demand few extra documents according to the policies and guidelines of the bank. The Loan gets approved by Bank or the financial institution within 7-15 days after the verification process of the application is completed. Follow the required steps, submit the required documents, and wait for the verification and approval notification from the bank. The loan amount after being sanctioned by the lending bank gets transferred to the Bank account of the borrower with few days from the date of approval.
Read More:- Guide For A Personal Loan