Has it always been your dream to have the ideal vacation, the perfect home appliance or even funding your child’s education? The chances of saving up money for all these wishes are slim with the constant inflationary trends. Amongst the various financial options, one of the most accessible one is a personal loan. This is a hassle-free, flexible and easily available way of minimizing your financial woes.
How can one apply for a personal loan? A personal loan is an option to consider when you need a certain amount to meet your immediate needs. This sort of a loan is very different from a home or car loan as it only takes a maximum of 2-3 days to sanction a personal loan. Being an unsecured loan, this loan requires minimum documentation process that is speedily done without the need to provide guarantors or any collateral amount. Personal loans offered by certain financial institutions should allow you to satisfy any of your financial needs.
Here’s a list of financial needs that can be met with a personal loan:
1. Weddings 2. Education 3. Vacations 4. Medical emergencies 5. Home renovations 6. Credit card bills 7. Other important personal needs: gadgets, home appliances, etc.
Key features of a Personal Loan:
A personal loan is one of the ideal ways of sorting out your immediate financial woes. Here are a few features of a personal loan:
• No security, guarantor, or collateral needed: This is one of those loans that do not require any basic security asset or collateral amount. Neither does one need to add a guarantor as a signatory.
• Better than paying by a credit card: A credit card interest rate is quite high and it is very difficult to repay the huge interest rate over time. Personal loan interest rates are comparatively lesser than that payable for credit cards.
• No questions asked on usage: The disperser of the loan does not ask for the purpose of the personal loan.
• Speedy approval process: The loan is processed within a span of 2-3 days.
• Access upto 15 lacs: A personal loan is sanctioned from a minimum of Rs. 75,000/- up to 15 lacs. This is usually sanctioned depending upon your eligibility, take-home salary and capacity to repay. The amount sanctioned can be increased if one claims a double income for the application process.
• Repayment tenure: One can repay depending on the eligibility criteria between one and five years.
• Additional charges: Apart from service charges that include processing fees, there are no hidden charges.
Who is eligible for a personal loan?
Almost all working professionals can apply for a personal loan online or from a loan agent. Here are the common eligibility criteria:
• Who can apply: All salaried professionals from MNCs/public limited companies, large private companies, PSUs/central or state government can apply. Self-employed professionals such as doctors & CAs can apply. Amongst business professionals, manufacturers, retailers, wholesalers and traders can apply.
• Age criteria:Professionals between the age group of 25 – 65 years can apply.
• Income criteria: Net Salary take-home of professionals should be a minimum of Rs. 2 Lac. p.a. as per the ITR.
• Employment tenure: One needs to show a proof of employment for a minimum of 2 years.
• Residence Tenure: One needs to reside at a particular location for more than a year. Taking a personal loan is not that tough with numerous financial institutions offering the same. Don’t hesitate to take a loan to realize your immediate financial decisions.