What Do You Mean by Personal Loan?

A Personal loans comes under the category of an unsecured loan. You can take personal loans from any bank or financial institution. Generally, people used to take this type of loan in a financial emergency. It may be buying a home or its renovation, paying medical bills, and many others. As it is an unsecured loan it does not need any guarantors or nominees.

Advantages Of Personal Loan.

There are some advantages of personal loans. some of them are given below:

• You will get personal loans very quickly from any institution and bank. Generally during your extreme needs.
• They need very fewer documentation and paperwork.
• The rate of interest is not so high. Also, you will get discounts on your processing fees.
• Personal loans have maximum 60-month tenure. You can pay to the bank anytime between 12 to 60 months.
• You can also avail of the part payment options to repay your loan amount.

Eligibility Criteria for Getting A Personal Loan.

There are a few eligibility criteria to apply for a personal loan. lets us know about it below:

• Those who want to apply for this loan must be of age between 22 to 30.
• The applicant should have earning options. It may be he is the owner of a business or an employee in a company.
• The applicant must earn at least 20000 per month or above to apply for getting this loan.
• You must have to maintain a good credit history that is 750 or above.

Documentations For Personal Loan.

Some of the important documents required to apply for thepersonal loansare briefly mentioned below:

For Salaried Person.

Documents required for salaried person are:

• Application form filled with recent photograph.
• Identity card.
• Pan card.
• Statements from a bank for the last three months.
• Payslips of three months.
• ITR of the previous three years.

For Self-Owner

Documents required for salaried person are:

• Application form filled with recent photograph.
• Identity card and address proof.
• Bank statement.
• Pan card.
• ITR for the previous three years.

FAQs

Q1.How long does it take to get approved for a personal loan?

It does not take much time for approval. It gets approved more instantly than other loans. It hardly takes 5 to 6 days for the verification process and checks the documents.

Q2.What is the best personal loan to get?

There is nothing so as the best personal loan. You just need to find the best lender who suits your needs. At your convenience, you can compare lenders in both online and offline modes. And then choose the best lenders for you. Some examples of best lenders are Bajajfin serve, HDFC, Axis bank, etc.

Q3.Can you pay off a personal loan early?

Yes, you can pay off your loan early if you want. This prepayment of the loan may add some penalty which varies from one lender to another.

Q4. What is the average interest rate on a personal loan?

Different lending companies have a different rates of interest. We will help you with the average rate of interest that you have to pay while taking any personal loan. It ranges from 10.75% to 35%.w.