Whether you need funds for family or for personal emergencies, or required funds to plan a wedding or vacation, apply for a personal loan online. It is a convenient way of getting quick funds at times of emergency. The personal loan application requires a few documents. It is processed faster than any other retail loan being collateral-free and obtained with minimal documentation. Just like most loans, however, they must be repaid in monthly installments.
Features and benefits of Personal loan process
No collateral required
One of the benefits associated with an online personal loan is that it is unsecured. This means you don’t need to pledge any collateral for your loan.
Minimal Documentation
In this age of digitization, the process of verification and documentation has now become short. This is applicable for an instant personal loan as they are fast in disbursal and require minimum documents for approval.
Easy Approval
You can get personal loans that are quick and easy to 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 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.
Personal loan eligibility criteria
- The minimum age to apply for a loan is 18 years-21 years, and the maximum is 60-65 years.
- Must be a resident of India
- Must be having a good credit score of 750, or above.
- The minimum monthly income requirement is Rs 15000 per month in non-metro cities and Rs 20,000 per month in metro cities.
Personal loan interest rates
| Interest rates | 10.25%- 25% |
| Processing fee | Differs from bank to bank; generally, ranges between 1-4% of the loan amount |
| Loan tenure | 12 months- 60 months |
| Loan amount | Rs 15000-50 Lacs |
| Lock-in-period | Varies from lender to lender |
| Pre-closure | Differs; Generally, between 2%-5% of the loan outstanding |
| Guarantor required | Based on credit profile |
Work experience
Salaried
Employed at the current company for at least 6/12 months
Self-Employed
- Business tenure of at least 3 years (continuous)
- ITR of last 3 years
Common documents required for Salaried Individuals and Self-employed individuals
- Filled personal loan application with photograph
- PAN Card
- Residence proof – Passport driving license, Voter ID, postpaid/landline bill, utility bills (electricity/water/gas)
- Last 3 years Income Tax Returns with computation of Income
- Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account
- Bank statements for the last 3 months(preferably your salary account in case you are salaried
Additional document required in personal loan process if you are salaried
Latest 3 months’ salary slips
Know about the personal loan process: How it works?
- Click on ‘ Personal Loan’
- After that, you need to fill in the required details as a first step to knowing your eligibility for a Personal Loan.
- Need to fill in details such as name, e-mail address, residence, employment type, name of the current company, monthly-in-hand salary, and contact details. After filling in the details, you will get an OTP on your registered mobile number to verify the contact details.
- Once the contact details get verified by providing the required OTP, then you will be provided with another form to fill which include details such as :
How much money do you need?
- Gender
- Date of Birth
- PAN Number
- Through which mode you are getting a salary
- Current residential address
- Locality
- City and State which you belong
Once you fill in the above-required details, you get to know your loan amount eligibility along with the best loan offers after checking your credit score and credit history. Once you select the loan offer, our representative will start processing your loan application.
Personal loans are unsecured loans and are, therefore, easily processed. Unlike home or car loan, the application process for a personal loan is simpler as the bank does not have to verify the details and eligibility of the properties and assets that you intend to purchase. Banks also do not need to verify the details and veracity of any collateral as there are no collaterals in personal loans.
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