Life is full of unpredictable circumstances, and these can occur at any point in time. If you are unprepared, such unforeseen situations can pose various challenges, financial or otherwise. Fortunately, the availability of various financial products like Personal Loans can help in meeting your financial needs.
Let’s learn more about the different types of Personal Loans in India, the eligibility criteria, and more!
What is a Personal Loan?
A Personal Loan is categorized as an unsecured loan because it is collateral-free. You don’t need to put up any assets as security against the loan. These days, you can easily apply for a Personal Loan online without any hassle.
What’s more, there are several types of Personal Loans in India that you can use according to your needs. Here are some of them:
- Personal Loan for Medical Emergency – You can avail of a Personal Loan for any kind of medical emergency. You can use it to pay medical bills, purchase hard-to-get medication, receive necessary medical procedures/treatment, and more.
- Personal Loan for Higher Education – You or anyone in your family can fulfil their education goals with a Personal Loan. Getting into the educational institution of your choice can become easier once you get a Personal Loan for Higher Education.
- Personal Loan for Travel – Vacation plans no longer must remain on your wish list. With a Personal Loan for Travel, all you must do is avail of the loan to fulfil any of the related expenses.
- Personal Loan for Wedding – You can plan the wedding of your dreams without worrying about the budget with a Personal Loan. With a Personal Loan for a Wedding, you can book your favorite caterer, venue, décor, and more without any stress.
- Personal Loan for Home Renovation – A home is a place of comfort, but it requires regular maintenance to retain that warmth and charm. With a Home Renovation Personal Loan, you can make any repairs and upgrades without having to worry about the costs.
What are the features and benefits of a Personal Loan?
Here are some of the top features and benefits that you can get from availing of a Personal Loan:
- No Collateral/Security Involved – As previously stated, you are not required to submit any assets as collateral against an unsecured Personal Loan.
- Loan Repayment Tenure is Flexible – These days, most Personal Loans are offered with easy repayment terms. Some NBFCs even offer Personal Loans with a flexible repayment period of up to 60 months.
- Competitive Interest Rates – You can avail of a Personal loan at attractive interest rates if you have a good credit history. An excellent credit score (above 750) can also help you find a loan at the best interest rates.
- Simple Eligibility Criteria & Documentation – Online Personal Loans come with simple eligibility criteria and minimal documentation. You only need to provide basic details to help lenders determine your creditworthiness and approve your loan.
- Multi-Purpose Loan with No Usage Restrictions – Personal Loans are multi-purpose and can be used to fulfil almost any financial requirement. With the different types of Personal Loans in India available, simply choose the one that best suits your specific needs.
- Easy & Quick Loan Processing – The entire process involved with getting a Personal Loan is extremely quick and seamless these days. From applying to getting the loan amount disbursed in your bank account, the entire process is completed efficiently.
Eligibility Criteria for Personal Loans
The eligibility criteria for a Personal Loan include the following requirements:
- Age – Minimum 24 years at the time of application and up to 58 years at loan maturity
- Citizenship – Citizenship of India
- Employment – Employees of Central Govt, PSU, MNC, Listed, Unlisted Public Ltd, Pvt Ltd, LLP or companies, etc.
- Work Experience – Should be in current employment for a minimum of 6 months and Should have a minimum of 24 months of total work experience
- Monthly Income – Your net take-home salary must be at least ₹30,000
You can also use the Personal Loan amount eligibility calculator to find out how much you can avail of from this loan.
Must Read – रु. 50,000 वेतन के लिए पर्सनल लोन
Required Documents for Personal Loans:
- KYC Documents
- Income Documents
- Current Address Proof
- Financial Documents
- Employment Proof
What are the Steps for Submitting a Personal Loan Application?
- Step 1: Click on ‘Apply Now’ on your lender’s website
- Step 2: Fill out the loan application
- Step 3: Enter the basic KYC details
- Step 4: Upload all the required documents
- Step 3: Wait for assessment and verification
- Step 4: Receive confirmation upon approval
- Step 5: Authorize the online disbursal
Conclusion
Personal Loans are one of the best financial products in India. Simply follow the above-mentioned steps and apply without any hassle.