What is a personal loan?
Before moving further and taking most important decision, you need to understand about the loan you are going to apply for. There are many different types of loans and personal loans are also important among them. It is a type of loan consumers takes in terms regarding personal use, family use or household use. Some people take loan for the purpose of their new business or even commercial use. This type of loan is also known as unsecured loan taken by consumers for the purpose of buying a vehicle or home appliances. There are many who take loan regarding marriages or for home renovations. All those need that comes under personal use is called personal loans and to apply for that there are some terms and conditions along with eligibility which you should study clearly. Each bank has their own rules and eligibility criteria so it depends totally on the bank you are connected with and going to apply for. Loan can only be given after verifying your ability to pay the loan back to bank, which means the bank, will take your full details regarding annual income and full credit history.
Eligibility required applying for personal loans
Taking loan is not so easy; you have to clear all the paperwork and should be eligible to get personal loans. Some amount of processing fee is also charged by bank and after checking your full income history and paying ability bank credits the loan amount to your account. Below is an approximate list of eligibility terms needed to apply for loan:-
- Per month your earning should not be less than 30,000 Rs.
- You have to provide your salary receipts or slips of last 3 or 3 months to bank.
- Latest 3 months salary account bank statement is also required.
- You will need employee ID card and visiting card too.
- All details about current employment and previous employment.
- Any of the mentioned identity proof (passport, voters ID card, driving license or PAN card)
- Some kind of Address proof like PAN card or Passport.
- Age proof
Understand the advantages and disadvantages of personal loans
Advantages include:-
- Easily available
- Absence of agent or middleman
- Unsecured loan
- Takes less time to process loan
- No conditions required to be stated as it is all purpose loan
- Minimum paper work needed
- Banks provide number of schemes and offers
- Amount and tenured offered to by bank
Disadvantages include:-
- There is issue regarding qualification criteria which you need to pass on and once you got pass there will be no delay in work.
- Maintain a balanced and good credit history when you apply for personal loan.
- Bank account is mandatory before applying loan in specific bank.
- There will be some kind of lender’s risk because it is unsecured loan as security or guarantee is lacking in this type of loan.
If you have all the requirements needed to apply for personal loans and hold a good credit history and can repay the amount borrowed by bank along with interest, you are most welcome to apply for loan for any purpose you require
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