Personal Loan is an unsecured credit provided by banks and NBFCs to individuals. A personal loan does not require any collateral or security and the process is simple with minimal documentation. People take personal loans for various purposes like medical emergencies, purchase of household or electronic goods, children's education, wedding expenses, home improvement or for travelling.
Typically the following documents are required to be submitted to the lending institution while applying for a home loan:
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The tenure starts from 12 months and can go up to 7 years. Therefore, you can choose a tenure suitable to your finances and needs.
For the loan process, banks and financial institutions request you to submit only proof of age, address, bank account details, salary slips, income tax returns, credit history, etc.
These are unsecured loans. Thus, you do not need to provide any collateral as security. This feature of personal loans makes them accessible to everyone with a regular source of income and a good credit history.
Disbursal of Personal loan takes 24 hours to 72 hours.
Applicant can club the income of co-applicant to enhance eligibility
Interest rates normally remain unchanged throughout the loan tenure
If you have outstanding amounts on high-interest credit cards, you can use personal loan to clear the dues. The interest rates on personal loans are lower than on credit cards. So, you can use the low-interest financial product to pay off high-interest debt.
When it comes to personal loans, there are several options available in the market that can suit different needs. One options for personal use is an unsecured loan, which doesn't require any collateral to secure the loan. This type of loan comes with a fixed interest rate and a fixed payment period that can range from a few months to a few years, depending on the borrower's creditworthiness and the lender's policies.
Another option is a secured personal loan, which requires collateral in exchange for a lower interest rate. The collateral can be any asset that the lender can sell to recover the loan amount if the borrower defaults.
The reasons or uses for which an individual can take a personal loan may vary depending on their specific financial requirements. Some of the most common reasons include the consolidation of existing debts, financing a major purchase such as a car or home renovation, funding a wedding or a vacation, and covering unexpected expenses such as medical bills or home repairs, finance their education, start a new business venture, or invest in the stock market.
When it comes to borrowing money from a bank, the purpose for which the loan is being taken out can sometimes be a factor in the approval or decline of the application. Many banks require borrowers to specify their intended end-use of the personal loan during the application process. This helps lenders to determine whether or not funds are being used in an appropriate way, and if the loan is likely to be repaid in a timely manner.
A multitude of factors contribute to the fluctuation of the standard interest rate on personal loans. The borrower's credit history, annual income, employment status, loan amount, and the lender's guidelines all factor into the interest rate. The typical range of interest rates for personal loans spans from 6% to 36%.
The concept of a no documentation loan is misleading since it is virtually impossible to obtain a loan without providing some sort of documentation. This may include basic personal information, proof of income, and credit history.
In the context of personal loans in India, the minimum salary requirement can vary depending on various factors such as the lender, the type of personal loan, the borrower's credit score and history, and the borrower's employment type (salaried or self-employed). However, it is generally observed that most lenders in India require a minimum monthly salary of Rs. 15,000 to Rs. 20,000 to be eligible for a personal loan.
When applying for a personal loan, there are several documents required to be submitted by the borrower to the lending institution. These documents serve as a proof of the borrower's identity, employment and financial stability. The most common documents required for a personal loan application include a government-issued ID card, proof of income such as salary slips, bank statements and income tax returns. Additionally, the borrower may also need to submit a proof of residence such as utility bills or rental agreements.
The minimum tenure for which a personal loan can be availed may vary depending on the lender's policies, the amount borrowed, and the creditworthiness of the borrower.
In India, most lenders offer personal loans for a minimum period of 12 months or 1 year. However, some lenders may provide loans for a shorter duration of 3 or 6 months as well. It is important to note that opting for a shorter tenure may lead to higher EMIs and interest rates.
The maximum period for a personal loan, generally referred to as the loan term, may vary depending on several factors. The loan term for a personal loan typically ranges from one to five years, although some lenders may offer longer periods of up to seven years.
A wide range of financial institutions, such as conventional banks, credit unions, and digital lenders, can provide you with personal loans.
Yes, At Dealplexus, our team of financial experts can guide you through the process of obtaining a personal loan that fits your specific needs and circumstances. We collaborate with multiple loan providers to obtain favorable interest rates and adaptable repayment conditions for our customers.