Everyone dreams, but very few achieve it. Dreams or say wishes are infinite. You can’t stop dreaming, right! But where the world stops is when there is a need of money to fulfill the inherent desire that gives us a reason to slug it out in this intensely competitive world. Suppose you have a wish to take your love to the romantic locales of Maldives, but when you glance at your bank balance, you do not find much and start cursing by saying travelling overseas is only for the riches.
One day, your son watched a cricket match on a high-definition LED TV at his friend’s house. Amazed by the mouthwatering picture and sound quality of the television, he told you to buy the same. But you disappointed him by saying, ‘Beta Me Mehngi TV Nahi Kharid Sakta‘. Why did you tell him that? Because you didn’t know you can buy that on a personal loan. Who needs personal loan? I guess, will cross your mind, right! Let me tell you that personal loan is a need of all as its coverage area is vast. From buying the all new iPhone to travelling abroad, it is personal loan that can be a reliable ally to achieve all your aspirations with ease.
Table of Contents
- 1 Who Are Eligible to Receive Personal Loan?
- 2 Benefits of Personal Loan
- 3 How to Apply for a Personal Loan?
- 4 Personal Loan Eligibility
- 5 Documents Required in Personal Loan for Self Employed & Salaried
Who Are Eligible to Receive Personal Loan?
Mostly, personal loans are available for salaried professionals working in either public or private sector companies.
Purposes of Personal Loan
You can avail a personal loan to meet all your purposes like travelling in India or abroad, buying a car or home, purchasing a consumer durable product or whatever you wish to encash on a loan.
Benefits of Personal Loan
Easy Availability– A personal loan is an unsecured loan, means you won’t have to submit any collateral to access the same from a lender. Also, with a wide range of lenders available, you can dream high & achieve high via a personal loan.
Fast Loan Approval– Personal loan can be approved within hours of submitting the documents provided there is no discrepancy in the documents. Post-approval, it takes about 2-3 days or a week for a personal loan to get disbursed.
Minimal Documentation- Since there is no need of an asset verification, which happens in the case of a car loan or home loan, the documents are minimum and simple.
Vast Coverage Area– All your personal purposes can be fulfilled via a personal loan.
Higher Loan Amount- You can avail a personal loan of an amount as high as Rs. 40 lakhs, with minimum being INR 10,000.
Flexible Loan Tenure- The tenure for a personal loan ranges from 1-5 years, giving you enough time to pay off the loan through EMIs, which stand for Equated Monthly Installments.
Listening to the benefits of a personal loan and not applying won’t go in sync, don’t you think so. Below is the process that you can follow to apply for a personal loan.
How to Apply for a Personal Loan?
Applying for a personal loan requires you to follow three easy steps as illustrated below.
Check Eligibility- You can go online to check personal loan eligibility in your case. There are a number of online portals available that based on your personal and professional details can show the eligibility.
Search & Compare Best Personal Loan Interest Rates– After checking the eligibility, you should search and compare the best interest rates available on a personal loan.
Apply- The above two steps would would direct you towards a lender of your choice. All you need is to click ‘Apply Online’ button and do the necessary formalities like mentioning the personal and professional details along with the scanned copy of the relevant documents.
List of Major Banks Providing Personal Loan
|Bank Name||Personal Loan Interest Rates|
|State Bank of India (SBI)||9.60% - 13.60%|
|ICICI Bank||10.50% onwards|
|HDFC Bank||10.25% - 17.00%|
|Axis Bank||10.25% - 21.00%|
|Kotak Mahindra Bank||10.75% Onwards|
|Punjab National Bank (PNB)||8.95% - 14.00%|
|Bank of India||10.35% - 12.35%|
|Bank of Baroda||10.00% - 15.60%|
|IndusInd Bank||11.00% Onwards|
Personal Loan Eligibility
So, if you want to avail a personal loan, there are few eligibility criteria that you have to meet. Want to know which are they? Look below the information stated in the points.
Eligibility for Salaried Individuals:
- Minimum age of the applicant at the time of loan application : 21 years
- Maximum age of the applicant at the time of loan maturity: 58 years
- Minimum work experience: 1 Year
- Minimum Net Monthly Income: INR 20,000
Eligibility for Self-employed Individuals:
- Minimum age of the applicant at the time of loan application-24 Years
- Maximum age of the applicant at the time of loan maturity-65 Years
- Minimum work experience should be atleast 3 Years
- Minimum Net Annual Income should be INR 1 lakh
Documents Required in Personal Loan for Self Employed & Salaried
|Age Proof||PAN Card/Voter ID/Aadhaar Card/Passport/School or College Leaving Certificates||PAN Card/Voter ID/Aadhaar Card/Passport/School or College Leaving Certificates|
|Residence Proof||Utility Bill/Voter ID/Passport/Aadhaar Card||Utility Bill/Voter ID/Passport/Aadhaar Card|
|Income Proof||Salary Slips of Last 3 Months, Form 16||ITR, Profit & Loss A/C Statement and Audited Balance Sheet for Last 3 Years|