The spending power of individuals and families has increased with the rise in the economic status facilitated by ample job creation. Today, individuals can spend and pay more with more income in hand. Also, there are a lot of lifestyle changes that constantly demand additional financial support. And to meet additional financial requirements, individuals opt for instant Personal Loan in India. With easy-to-meet Eligibility Criteria For Personal Loan, borrowers remain constantly motivated to opt for instant Personal Loan in India. However, many first-time borrowers are unaware of certain factors about a Personal Loan.
At present, various lenders offer both secured loans and unsecured loans. A secured loan requires the borrower to put in collateral while applying for a loan. And in the case of unsecured loans, borrowers do not have to pledge any asset to apply for a loan. A Personal Loan is a type of unsecured loan offered by the lender with no end usage restriction.
As compared to other types of loans, a Personal Loan has more flexible features in terms of usage and repayment. Personal Loans are collateral-free loans where borrowers are not required to pledge any asset to apply for the loan. Personal Loans can be used for a wedding, emergency medical expenses, higher education, home renovation, travel etc. and to meet these different usages, there are several types of Personal Loans – Personal Loan for a wedding, Personal Loan for travel, Personal Loan for education, Personal Loan for medical, etc.
Personal Loan eligibility criteria
Here are a few of the Personal Loan eligibility criteria that a borrower should meet to apply for a Personal Loan:
- Age: As a borrower, you should between 22 and 58 years of age
- Citizenship: Indian
- Employment: If you are looking for a Personal Loan, you must be employed full time
- Work experience: At least 1-year working experience is a must to apply for a Personal Loan
- Monthly income: As an applicant for a Personal Loan, you must earn at least ₹20,000
Documents required Personal Loan
- KYC documents like Aadhaar/PAN Card
- Current address proof (Passport/Utility bills/Rent Agreement)
- Latest salary slips and salary credit bank statement from the last 3 months
- Proof of employment, such as official mail ID confirmation /Emp ID Card
How to apply for a Personal Loan online?
A Personal Loan can be applied by using either the online or the offline method. You can direct visit the official branch of the lender and apply as per the given procedure. And if you want to apply for Personal Loan online, you must follow the below steps. Please note there can be a few changes in the steps depending upon the lender and requirements provided by the lender. Do not forget to check the lender’s official website to know more about the online or offline loan application.
Step 1: Visit the lender’s official website and click on ‘Apply Now’
Step 2: Fill up the loan application form
Step 3: Enter your basic KYC details and upload all the documents that are required
Step 4: Await verification and application assessment
Step 5: You will receive a confirmation of successful loan approval
Step 6: You need to approve and authorize the loan amount disbursal
What are the uses of a Personal Loan?
A Personal Loan can be used for several different purposes such as:
- Renovating house
Renovating a house can get out of budget sometimes; in such cases, a collateral free personal loans for renovating a house is immensely helpful. If you’re using a Personal Loan for home renovation, you do not have to be worried about going over budget as you have the leverage of additional financial help. Renovating a house may include upgrading or modifying your current house, adding a new balcony, or making an alteration to the kitchen or bathroom.
- Wedding
There are various activities involved in a wedding such as a venue, decorations, clothes, gifts, catering, and other such expenses. This sometimes can impact your personal savings and finances. A Personal Loan helps you cover all your expenses without any restrictions.
- Emergency medical bill
Instant disbursement of a Personal Loan allows borrowers to rely on the Personal Loan for a medical emergency. There are several uncertainties involved during a medical emergency which can sometimes impact your finances. A Personal Loan helps you cover all the uncertain expenses without any hassle.
Apart from the above-mentioned uses of a Personal Loan, it can be used for traveling, higher education, and various other purposes.