An easy personal loan can be an excellent solution to address your financial requirements, especially in times of emergencies such as medical expenses or planned events like a wedding, travel, etc. A personal Loan can also be used to purchase your desired vehicle as well. Hence, it can offer an incredible range of benefits to meet your financial needs.
Below we will understand how Personal loans can be helpful and what are their prime benefits.
Benefits of easy Personal Loan
Here are some of the notable benefits of an easy personal loan –
- Financing any monetary needs: Personal Loans are a great financial tool that can help you fulfil various monetary needs such as buying or renovating a house, medical emergencies, purchasing a vehicle, higher education, and more.
- Rapid disbursement of the fund: A significant benefit of a Personal Loan that is worth mentioning is the quick disbursal of the amount. In case of any emergency, this feature can be a saviour.
- Flexible tenures: Another benefit of these Personal loans is the flexibility of the tenors. You must research thoroughly before applying according to your requirements and repayment capabilities.
- Attractive interest rates: Personal Loans also tend to come with attractive interest rates, making it easier for you to pay off your EMIs. It’s crucial to compare interest rates offered by different lenders and choose the most feasible option.
- Minimum documentation: The documentation process for Personal loans is minimal and hassle-free. You need to go through the documents required to avail the loan. This strictly includes your KYC details, bank statements and some other documents depending on the employment type of the customer.
- Collateral is not required: Being an unsecured loan, collateral is not required for Personal Loan. That roughly means you do not have to mortgage your assets before applying.
Things to Know Before Applying for A Personal Loan
Before applying for a personal loan, you need to know a few basic things. An individual applying for a personal loan should know about the eligibility criteria, documentation process, time of disbursement and everything related. These factors are mentioned below:
Eligibility criteria
Although personal loan criteria differ from bank to bank, most lenders have some standard criteria. These are as follows-
- Age- The applicant should be between 21 and 65 years old.
- Employment type- Can be employed with private, public or MNC/ can be self-employed.
- Monthly income- The monthly income should be at least Rs 15,000.
- Credit score- Minimum 750
- Work experience: At least 6 months for salaried individuals and 2 years for self-employed applicants
Documents required
For Personal Loans, the documentation process is minimal. You must be careful and ensure the required documents are correctly submitted. These are-
- ID proof- Aadhar card, PAN card, voter ID card, passport, driving licence, etc.
- Address proof- Utility bills, Aadhar card, PAN card, voter ID card, passport, etc.
- Income proof (salary slip and Form 16 for salaried individuals and ITR and profit and loss statement for self-employed ones)
- Employee ID card for salaried applicants and business registration details for self-employed ones
- Bank statements as specified by the lender
Apart from these two, you also need to take note of the following –
- Interest rate
- Loan processing time
- Repayment tenure and options
- Additional charges
- Loan terms and conditions
These are the most important things to ensure you are perfectly eligible to apply for the loan.
Conclusion
Personal Loans are easy to get when you have all the details and can meet all the lenders’ criteria. Owing to its overarching benefits, this financing option is ideal for meeting all your monetary requirements, whether planned or not.
