- June 6, 2020
- Posted by: Ganeshcbani
- Category: Blog
Looking for a way to get a quick financial boost? Try looking into personal loans! These loans can be a great way to get the money you need to cover short-term expenses, and they’re often easy to apply for. Plus, with interest rates that are usually lower than what you would find on other forms of credit, personal loans are a great option for those who want to take advantage of low rates without having to put up much collateral.
Personal Loan – Personal loans at low interest rates from various lenders
Personal loans are an unsecured credit form which is common to meet immediate demands. It is in nature multi functional and can therefore be used for various purposes including wedding, renovation of the house, travel and many more. In addition , the amount borrowed is not restricted and can be used in any way they want. A personal loan can actually help you build up your loan faster than other types of loans. This is due to the risk it carries because it is uncertain.
In summary, a personal loan can compensate for any temporary financial crisis.
Personal loan benefits and characteristics
No collateral necessary
One of the advantages of a personal online loan is that it is unsecured. This means that you don’t have to guarantee your loan. Although this may be an interest rate reason, if you fulfill the eligibility requirements, you can easily obtain a low-interest personal loan.
Minimum documents
The process of verification and documentation is now short in this age of digitization. This applies to an instant personal loan as it is quick to disburse and requires minimum approval documents.
Easy Approval
You can get personal loans that are quick and easy in approval. This is why it is the best bet in times of financial emergency. Moreover, the process has become digital; thus reducing time in the verification process.
Multipurpose in nature
A personal loan can be used for anything except for investment and illegal activities. Apart from that, it is multipurpose in nature and can be used for anything. Other forms of credit when taken are for a specific purpose and can be used only for the same. For example , a home loan is used for purchasing a house whereas a car loan is taken to buy a car. However, a personal loan can be taken to offset any immediate requirements.
Eligibility for Personal Loan
Most banks / NBFCs offer personal loans but have different eligibility criteria. However, for all financial institutions, certain requirements are general. The eligibility requirements for online clearance for personal loans for employees and self-employed persons are:
Age 18/21 years – 60/65 years Employment
Type1. Salaried
2. Self-Employed professionals Credit score 750 or above with a good credit history Minimum Net Income (Monthly)
- ₹15,000(non-metro cities)
- ₹20,000( metro cities)
Loan Amount
Up to ₹50 lacs depending on the credit profile Work Experience Salaried
- Employed at current company for at least 6/12 months
Self-Employed
- Business tenure of at least 3 years (continuous)
- ITR of last 3 years
Documents Required for Personal Loan
The common documents required for an online personal loan approval are given below:
For Salaried Individuals
1. Identity & Age Proof
2. Completely filled personal loan application with photograph
3. PAN Card
4. Residence proof – Passport driving licence, Voter ID, postpaid/landline bill, utility bills (electricity/water/gas)
5. Bank statements for the last 3 months(preferably your salary account)
6. Salary Slips of last 3 months
7. Form 16 or Income Tax Returns of last 3 years
For Self-Employed Individuals
1. Identity & Age Proof
2. Completely filled personal loan application with photograph
3. PAN Card
4. Residence proof – Passport driving licence, Voter ID, postpaid/landline bill, utility bills (electricity/water/gas)
5. Bank statements for the last 3 months(preferably your salary account)
6. Salary Slips of last 3 months
7. Last 3 years Income Tax Returns with computation of Income
8. Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account
FAQ(Frequently asked questions)
What are the basic requirements for the approval of your personal loan?
It’s quick and simple to get a personal loan. You will be asked to include the following information in order to get your loan approved quickly:
Copies of your payments slips, address proof and bank accounts, including your PAN number, CIBIL score & KYC records.
Find out more about eligibility for personal loans and documentation for more information.
What is the maximum personal loan for which you are entitled?
Depending on your eligibility we provide personal loans from a minimum value of Rs.75,000 to a maximum of Rs.25,000 per person.
How much do you have to pay for EMI?
Your Equated Monthly Contribution depends on the principal amount of the loan, the interest rate paid and the length of the loan.
You can use the Personal Loan EMI calculator to select an EMI number that is convenient for you.
How to measure your EMI using our calculator for your personal loan?
Enter the following information for your EMI calculation:
Loan Amount (the amount of loan you want to obtain)
Interest rate for personal loans
Loan term (12 -60months period)
Click the button Calculate. The program reveals your EMI ‘s monthly interest and principal payment breakdown.
If the EMI personal loan is more or less than you would like to pay, change the capital amount and follow the same steps from 2 to 4.
When are you going to apply for personal loans?
Personal loans may be taken for various reasons, such as:
Travel – strike off your dream location with an simple personal loan.
Education – Give your child a high quality education with a personal loan
Wedding – No other event is more special than a marriage in a person’s life. Throw a lifetime wedding with the help of a personal loan
Medical – Do you need medical emergency funds? Choose a personal loan to meet your needs
Debt Consolidation – Do you need to repay other costly loans? You can help with a personal loan!
Will you need any guarantees to use a personal loan?
No, you do not need any collateral or protection to make use of personal loans.
How long will it take to receive approval for a personal loan application?
Personal online loan applications can be approved for a few minutes in seconds! On the other hand, offline applications may take a few working days from the date of approval.
Does your personal loan have an impact on your credit?
Like every other form of credit, a personal loan also affects our credit rating in the long run and is a great chance to generate good credit worth. Consistent EMI payments and the subsequent repayment of your personal loan in its fixed term boost your future credit score
Will you get personal loan tax benefits?
Yes, your personal loan can benefit from tax benefits depending on the purpose for which the loan was taken. The Revenue Tax offers tax deductions for loans taken to teach, buy or renovate property and grow business. For example, if you have a personal loan for home construction or renovation, under Section 24 of the Income Tax Act, the interest paid is eligible to be claimed as the exemption from your taxable income. Interest up to Rs. 2 lakhs is exempted for self-owned households, whereas the whole interest can be claimed as tax exemption for rented households. The interest paid will be added to the acquisition cost in the event of business expansion, which will reduce capital gain and, consequently, the tax liability. Section 80 E of the Income Tax Act also addresses tax benefits for those who have taken an education loan for higher education up to Rs. 1.5 million.
