A BRIEF INSIGHT INTO PERSONAL LOAN AND THE CRITERIA NEED TO BE FOLLOWED TO AVAIL IT!!
Personal Loan refers to the amount of loan that an individual borrows from banks or non-banking financial associations in order to meet the personal requirements. It is an unsecured form of a loan and doesn’t require any collateral asset deposit like residential property or gold in order to have the loan. While granting a personal loan to an individual, the factors which are checked are basically employment history, salary, financial status and the capacity of the person to repay back the loan in time.
A personal loan gives users the flexibility to use it in any of their major requirements like marriage, international holidays, coping-up with medical expenses or purchasing gadgets etc. It requires users to repay the loan amount by monthly EMI; the rate of which depends on the amount borrowed by the individual, the loan tenure and the current interest rate. It serves as one of the most useful solutions for individuals in emergency financial crisis.
Eligibility criteria for Personal Loan
Not every person can apply for a personal loan. There are a few eligibility criteria that need to be followed.
a) The individual should be working professional either in govt. based organizations or private companies or self-employed.
b) Minimum age of the individual to apply for a personal loan should be 21 years and the maximum age should be 60 years.
c) The individuals should have a minimum salary of 25,000 per month to fit into the category for applying and repaying loans. It may differ in some private banks like HDFC, Axis bank where minimum salary should be 15,000 per month.
d) If you are a working professional, a work experience of 3+ years is required and at least an experience of 1 year with the current employer.
e) The CIBL score of the individual should be minimum 650.
Documents required for Personal Loan
The major documents that are a must requirement for a personal loan are:-
a) ID proof of the individual like Vote ID/Passport/Driving License/Adhaar card that has the residential address proof in it and age proof.
b) Salary slips for the last 3 months along with bank statement.
c) If anyone is living in rent, then the rent agreement is required as a current residential proof.
d) Signature verification proof.
e) Updated account passbook of last 6 months.
These are the mandatory documents required for a personal loan from any bank or non-banking financial company. Apart from these, any extra documents if required varies on the basis of service providers.
Tenure of Personal Loan
A personal loan has a total tenure of minimum 1 year to maximum 5 years depending on the amount borrowed and the purpose it is given for.
How much amount can be borrowed in Personal Loan?
A personal loan has a minimum withdrawal range starting from Rs.30, 000. The bank approves loan amount to an individual in such a manner that their monthly EMI doesn’t go beyond 40 to 50% of their monthly salary or earning. Also, the credit background is checked whether the person is under any existing loan or unpaid credit card bills. In such cases, a low amount of personal loan is granted.
The above-mentioned points are the major requirements for a personal loan. Their settlement procedures and added benefits vary from 1 to 1 service provider.