Published on February 20th, 2023

It’s common for people to turn to Personal loans in order to meet their needs, from car purchases and home renovations, to funding children’s education. However, before going ahead with a Loan it is vital that you take the time to review any eligibility criteria set by lenders- otherwise your application may be unsuccessful.

To help you find out all there is about personal loans, including what requirements need to be met. This blog has everything you could ever ask for.

So, let’s get started.

What Is A Personal Loan?

A personal loan is an unsecured loan, where the borrower takes money from the lender without providing any collateral. Personal loans usually come with fixed or variable interest rates and repayment terms; giving borrowers more flexibility than other forms of credit.

Personal loans are mainly used for long purchases, debt consolidation, paying off high-interest credits, home improvement projects, etc.

What Are The Eligibility Criteria For Taking A Personal Loan?

Mentioned below are the few vital eligibility criteria for availing a personal loan:

• You will need to have the KYC documents;
• Personal loans have a minimum income benchmark for specific lenders;
• Borrower must be of a particular age group, such as 60-65 or 18-21;
• Only Indian residents are eligible to apply for personal loans;
• One of the most crucial factors when taking a personal loan is the CIBIL score, as it determines the loan amount, tenure, and interest rate;
• Self-employed individuals can only apply for personal loans when they have financial documents, ITRs, and proof of business existence

When Can You Apply For A Personal Loan?

There are various reasons to apply for a personal loan, such as:

• For house renovation
• For fixing a car
• For Educational needs
• For expanding your business
• For weddings
• For financing vacation
• For consolidating debt

Benefits Of Getting A Personal Loan

Here are some of the significant benefits for getting a personal loan:

Less Documentation

One of the significant benefits of getting a personal loan is that it does not require many documents.

Flexibility

Another benefit of buying a personal loan is that it offers excellent flexibility. This means that these loans come with fixed or variable interest rates.

No Collateral Or Security Is Needed

A personal loan does not require any collateral. The loan is given based on the borrower’s repayment capacity or credit history.

Lower Interest Rates

Compared to other forms of credit, personal loans with lower interest rates. Therefore, if you want to save money, you must choose personal loans. Personal loans are available at lower interest rates.

Quick Loan Disbursement

It is common that loan disbursement takes a few days to complete. However, this is not the case with personal loans. You can quickly get a personal loan within a stipulated period.

Build Credit Score

Personal loans are a great way to build your credit score. You can avail your personal loan at an attractive interest rate and ensure that your credit score improves over time.

Easy EMI Facility

EMI stands for Equated Monthly Installments. It simplifies the overall process of taking the loan. The best part about a personal loan is that it helps you repay the principal amount easily and hassle free.

Steps To Apply For A Personal Loan

Follow the below mentioned steps to apply for a personal loan:

• Before, applying it is vital to know the loan eligibility criteria;
• The next step is to calculate the monthly installments precisely
• Visit the Bank
• Submit all the necessary documents

The Bottom Line

Getting a personal loan is quite an easy process. It has excellent benefits like easy EMI facility, flexibility, minimal documentation, and many more. All you need to do is fulfill all the eligibility criterias to buy the personal loan. Most importantly, you should be very careful when choosing a lender to buy a personal loan.

Read More Posts

• Best Instant Personal Loan Apps In India
• Credit Card Or Personal Loan: What Should I Choose?
• Personal Loan vs. Credit Card: Which One Should You Get?
• 5 Tips For Building A Better Credit Score With Personal Loan Options
• New Ideas To Help Your Personal Loan Application
• How To Apply For A Personal Loan And What To Avoid
• How Personal Loans Can Help Women In India?

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