A personal loan is an unsecured type of loan as it is not given against collateral. This type of loan only considers your credit history, which is known by the banks by viewing your CIBIL credit report. These loans may be used for purposes of travel, education, business, and marriage. Anyone can avail of a personal loan depending on their capacity to pay back the loans.
TYPES:
The first type of loan is personal and is used for travel plans if you are the kind of person who loves to travel or is thinking of going on a first-time vacation. Taking a much-needed break from either your professional or personal life. Whatsoever, the reason is this is the loan for you.
The next type of personal loan can be used to renovate your home or remodel it. There may be various reasons for renovating your home; either you want to change the house’s style and layout as per what you saw in the latest edition of your favourite magazine or there has been some structural damage to the home, and it needs immediate repairing.
There is also your educational loan, which may be used for your higher education, i.e., is your post-graduation needs or general education. This is another type of loan that is popular in India.
Other than this, there is a loan for durable consumer products; this can be used for home appliances or for buying appliances for yourself. You can also use the loan for the objective of purchasing electronic goods such as computers.
There are various banks and financial institutions that cater to the general public’s needs by offering them personal loans for a variety of reasons. One of them is Jana Small Finance Bank Personal Loan. There is also a facility known as a personal loan EMI calculator, which will help you see if you apply for the right amount.
The eligibility criteria for personal loans are:
The person applying for a personal loan should be 21 years for a salaried employee, and for a business person, the minimum age should be 25 years. Both for salaried and self-employed or business persons should have a steady source of remuneration to be capable of paying the EMI’s on time and not falter in any payments.
The documentation process is more simple when you compare them with the other loans available in the market. All the papers you require for the documentation process to be completed are your Income proof, Identification proof, and passport-sized photos. Some banks or lending companies may ask you for extra documents. The personal loan interest rate is affordable.
Conclusion: The process for this type of loan is simple and straightforward, which is why it is the most popular loan in India.
Must Read:- Myths related to a personal loan
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