As the number of loan seekers is increasing, the requirement for personal loans is also increasing. It is due to the ease provided in debt repayment. And the relaxation provided in time and effort due to the online presence of loans.
What is a Personal loan?
A personal loan is given to an individual based on their credit history. It is an approach, where the person borrows money from the lender and had to repay the loan amount in a fixed tenure. Loans are taken to satisfy the personal needs of a person(house renovation, investing in large assets, marriage, buying a vehicle, etc. ). Generally, these loans are considered as ‘Unsecured loans’ because there is no collateral to secure the loan. You can repay the debt by choosing either a cheque method or opt for a monthly installment (EMIs).
When to have an idea of getting a loan?
Loans opt when individual savings are not enough to satisfy his/her financial needs. Loans can be taken to satisfy needs such as refurbishing a home, organizing any event, for children’s academics, going for a dream vacation, buying electronic gadgets, or other appliances, an unforeseen emergency such as a medical emergency, or going to buy a dream vehicle.
Eligibility Criteria for opting a loan
You can check your personal loan eligibility criteria by considering yourself in any of the following categories:
For a salaried employee, the personal loan eligibility criteria of an individual should lie in between the age group of 21-58 years with a minimum of 1-year experience in the current job. The income of the salaried person should be above INR 17500.
For self-employed, the eligibility criteria of an individual should lie in between the age group of 25-65 years with a minimum of 3 years of experience in the current business. For a self-employed person, the income is based on the minimum profit an individual gain after-tax deduction.
Essential documents for a loan
KYC documents are the uniform for both salaried as well as a self-employed individual. KYC documents required are PAN card, Aadhaar card, voter ID, and utility bill(electricity bill or phone bill).
For a salaried employee, the economic documents required mainly work continuation proof(Current job appointment letter, experience certificate of the previous job) and cash proof(last 3 month’s salary slip, bank statement).
For a self-employed individual, the economic documents required are the last 2 years ITR with an evaluation of income, bank statement, business and ownership proof, and recent account statement of the last 1 year.
Steps for applying for a loan
So the overall process to get a loan approved is categorized into four parts:
You have to register for a fresh loan by filling an application form.
You have to give all the documents required to get a loan.
The bank/NBFC will take your application under consideration (mostly, applications are processed within 48 hours).
The final step is the acceptance of an agreement from the lender.
UCO Bank Personal Loan provides a holistic demonstration of their loans. Try to opt for a loan, that has a decent interest rate.
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