Everything You Need To Know About Personal Loan

By Author: anjitha
Total Articles: 4
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Personal loans are a type of unsecured credit sanctioned by banks or other financial institutions to individuals who are looking for financing for their personal needs. The primary criteria for personal loan eligibility include factors such as credit history, monthly income, profession, repayment capacity, etc. Over the past few years, there is a steady rise in the number of individuals opting for personal loans for their financial needs. What makes a personal loan popular? Easy access, minimal documentation, flexible repayment, debt consolidation, etc. are some of the factors that contribute to the growing popularity of the personal loan.

Benefits of availing of personal loan

Whether it is a medical emergency, wedding expenses, or education fees, a personal loan is a boon when you need money without too much hassle. These loans are different from other loans such as home loan, student loan, mortgage loan- that are designed for specific expenses. Unlike other loans, where you must provide several documents, a personal loan requires minimum documents. The significant feature of a personal loan is that the lender ...
... offers you the flexibility to choose the loan tenure. You can select the loan tenure according to your repayment capacity. Generally, the personal loan tenure ranges from 1-5 years. Opting for a short-term loan can save on the interest payment and repay the amount faster. With an increased number of financial institutions offering personal loans online service, the loan amount is disbursed in a few hours if you meet the eligibility criteria.

Maximum Personal Loan Amount

The exact loan amount will vary according to the loan provider you choose. Usually, you can avail up to INR 20 lakhs if you are a salaried employee or INR 30 lakhs if you are a self-employed businessman. However, it depends on the income level, your profession, and the lender's assessment.

Documents required for a personal loan

Some essential documents you need to provide along with the application include, proof of income, proof of residence, identity proof, etc.

If you've decided to borrow a personal loan, review the eligibility criteria of your lender. With this, you can easily find out what interest rate and loan term you may qualify for. Compare the loan offers from different lenders before applying for a personal loan online.