Personal Loans – Features, Eligibility, Documents Required and How to apply
A personal loan has many forms. Sometimes it is known as a wedding loan, a medical loan, a travel loan, a top-up loan, etc. The reason behind this is that a personal loan can be taken to pay for a wedding, to pay for a medical emergency or to pay for a vacation. There are no restrictions on how you can use the funds from a personal loan. Fortunately, getting a personal loan is a very simple task. All you have to do is apply for the loan online and you will get a confirmation within a few minutes. What are features of Personal Loans? Who is eligible to take these loans? What documents are required and how to apply for personal loans?
Features of Personal Loans
Before we get into the details of how you can get a personal loan, let us understand what exactly a personal loan is and how it can be of use to you.
A personal loan is an unsecured loan. You do not pledge any collateral or third-party guarantee before you take a personal loan.
The lender offers the loan to you based on trust and also after evaluating your credit score and your financial profile.
The interest rate of a personal loan is higher than a regular secured loan and the duration of the loan is shorter also.
A personal loan is designed to help you meet a sudden financial need, such as a medical emergency or to pay the admission fee in a college.
Many banks and NBFCs in India offer personal loans. The availability of online personal loans has made it very easy for many people to get personal loans instantly.
There are many good apps and websites that offer instant personal loans that are easy and quick to get. One should check interest rates and terms and conditions before they opt for such Apps.
How to apply for Personal Loans online on Apps / Websites?
The personal loan apply steps are very simple:
- Download the app or visit the website of the lender.
- Select the “APPLY NOW” option
- Fill in the application form, which is very short and basic
- Provide some personal details such as your name, gender and place of residence
- Enter your PAN number / Aadhaar number and submit
Once you enter these details, the portal will instantly process your application. Your credit score will be evaluated and you will instantly be told about the status of your application. If approved, your personal loan will be available within 10 minutes.
What is the eligibility criteria for personal loans?
To ensure your personal loan application is approved and do not face any rejections or setbacks, you need to apply properly. For this, the first thing to do is to ensure you are eligible for the loan. The eligible criteria include:
1) Age: To qualify for a personal loan, you need to be aged between 18 and 65 years. A person beyond the age of 65 may not get a personal loan as he is retired by then and may not have a steady income to repay the loan.
2) Credit score: Ideally, your credit score should be high and healthy for you to receive a personal loan. However, people with lower credit scores also qualify for personal loans, their rate of interest is usually higher.
3) Income: You need to have a steady and stable income and have proper employment status. Personal loans are not given to those who are unemployed or are financially unstable as the lenders feel they won’t be able to repay the loan amount.
4) Citizenship: And finally, you need to be an Indian citizen to be able to apply for and receive a personal loan in the country.
Documents needed to apply for a personal loan
You need to have your AADHAAR card, PAN card and some photographs of yourself. The personal loan application process is simple and you do not have to arrange for a whole lot of documents to get such a loan instantly.
If you meet the above-mentioned criteria requirements, your personal loan should be available to you in a simple and hassle-free manner. You can then use the loan amount in a way you please. Once that is done, focus on repaying the loan. Choose a good and flexible EMI scheme that does not strain you too much. Repay the EMIs smoothly and clear your dues on time. This will increase your financial wellness and will also help to keep your credit score stable.
Summary: Even after saving and spending cautiously, certain financial situations spiral out of control. As a result, you may need some additional funds on an urgent basis. At such times, a personal loan bail you out. As you saw from the points mentioned above, a personal loan is easy to get. However, you need to be cautious and borrow responsibly. Borrow only as much as you need and repay the loan on time. This will help you to meet your financial needs and also to keep your credit score up and healthy at all times.
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