As the number of clients is increasing the demand for personal loans is also increasing. It is due to the relaxation provided in debt repayment and tenure. You have to put fewer efforts due to the digital presence of these loans.
What is a Personal loan?
loans are given to a client based on their credit history and income. It is a holistic approach, where the client borrows money from the banks/NBFC and had to repay the amount in a definite tenure. These loans are taken to fulfill the personal needs of a client. Sometimes these types of loans are considered as ‘Unsecured loans’ because there is no collateral required to secure these loans. You can repay the debt by choosing either a cheque method or EMI( check your EMI online by using a personal loan EMI calculator).
When to use a loan?
Loans are used when client savings are not sufficient to fulfil their economical needs. Loans can opt to fulfil needs like renovating a house, performing any event, for education, planning, and entrancing vacation, buying some expensive gadgets or other expensive things, an unforeseen situation like a medical emergency, or going to buy a dream vehicle.
Eligibility Criteria
For salaried people, the eligibility criteria of a person should lie in between the age group of 21-58 years with at least 1-year experience in the current job. The income of the salaried individual should be above INR 17500.
For self-employed people, the eligibility criteria of a person should be in between the age group of 25-65 years with at least 3 years of experience in the current field. For a self-employed person, the income is based on the least profit a person gains after-tax deduction.
Proof required for a loan
KYC documents are usual for both salaried as well as a self-employed client. KYC documents include PAN card, Aadhaar card, voter ID, and utility bill(electricity bill or phone bill).
For salaried people, the financial documents necessary are mainly job continuation proof(Current job appointment letter, experience certificate of the previous job) and income proof(last 3 month’s salary slip, bank statement).
For self-employed people, the financial proof necessary is mainly the last 2 years ITR with computation of income, bank statement, business and industry ownership proof, and current account statement of the last 1 year.
Steps for applying for a loan
So the complete process to get qualify for a personal loan comprises of four parts:
The first thing to do is to fill out a fresh application form.
The second thing you will do is to provide all the necessary documents that are required to get yourself a loan sanctioned.
The third process is performed by the side of the bank as they put your application under process for verification.
The fourth thing is the signing of an agreement with the lender you asked loan for.
Loans are an important aspect to consider to fulfill your multiple desires with fewer savings. Have a tailored-based approach while opting for a loan. To get more insights on loans, go for Allahabad Bank Personal loan.
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