The demand for Personal Loans online is increasing due to its flexibility and digital process. You can apply for this loan to meet various financial needs such as medical costs, home remodeling, vacation plans, weddings, etc. You may be confused about which one to apply with so many different categories. In such cases, you can use a personal loan app such as Buddy Loan to choose the right loan according to your financial situation and need.
This article will help you understand how to get a personal loan and the benefits of getting one.
Table of Contents
What is a Personal loan?
Many banks and lending institutions provide personal loans to fulfill sudden financial needs without collateral. This loan is offered based on your income level, credit history, and employment history. Therefore, lenders check your credit score to ensure a good repayment history before lending you money.
Benefits of taking a Personal Loan
- You can avail of this loan without any collateral, unlike other loans such as a home loan or gold loan.
- You can get your loan application approved quickly with just the minimum documentation required for KYC verification.
- The loan amount will get disbursed to your bank account within a few hours after completing verification.
- Lenders offer flexible tenure of repayment starting from 6 months to 60 months. Therefore, you can choose your assignment according to your convenience.
- Since it is a digital process, the verification process is quick compared to other types of loans.
Eligibility Criteria
Check if you meet the personal loan eligibility criteria before applying for a loan:
| Sl.No. | Particulars | Description |
| 1 | Nationality | Indian |
| 2 | Age | 21 to 60 |
| 3 | Employment Status | Employed or Self-Employed |
| 4 | Minimum Income | INR 20,000 per month |
| 5 | Work Experience | Min one year completed |
| 6 | Credit Score | Above 750 |
Documents required
The following table shows the personal loan documents required for KYC verification.
- For Salaried Employee:
| Sl. No. | Particulars | Documents required |
| 1 | Proof of Identity | Aadhar Card, PAN Card, Driving Licence, Passport |
| 2 | Proof of Address | Electricity Bill, Water Bill, Passport |
| 3 | Proof of Income | Bank statement for the last 6 months |
| 4 | Work experience | Employment Certificate for work experience |
- For Self-Employed:
| Sl. No. | Particulars | Documents required |
| 1 | Proof of Identity | Aadhar Card, PAN Card, and Driving Licence |
| 2 | Proof of Address | Aadhar Card, Electricity Bill, and Water Bill |
| 3 | Proof of Income |
|
Essential Points to note before applying for a Personal Loan
- Meet all the eligibility criteria required for a personal loan.
- Maintain your credit score above 750 to get competitive interest rates in the market.
- Have a stable income of at least INR 20,000 per month
- Do a comparative analysis of interest rates provided by various lenders to choose the one with lower interest rates.
EndNote
Personal Loans come in handy when looking for urgent funds without any collateral. If you plan to apply for this loan, you can use personal loan apps, which will help you match the suitable lenders, depending on your requirements.