As personal is an unsecured loan, the interest rate on a personal loan is ordinarily higher than a car loan or home loan. Consequently, you require to know your funds well before advance as you choose one.
No warranty or collateral is needed
Since it is an unsecured loan, there is no collateral of any asset needed. It is provided based on your credit histories and payment capacity.
Less documentation
Many think twice before applying for personal loans due to the lengthy documentation process. Although personal loans are allowed with minimum paperwork.
Quick loan disbursement
These days it necessitates a few hours for loan distribution. If lenders perceive that you can repay the loan inside the designated time and require the loan for a legitimate reason then receiving a personal loan amount is easy.
Fixed-rate of interest over the tenure
The rate of interest on personal loans is fixed at the inception of the duration and continues constantly throughout the period. Therefore, it becomes simple for loan aspirants to design for their future EMIs well before advance.
A personal Loan is an unsecured loan, and lenders carry thorough due diligence. Most essentially they examine your financial stability.
Personal loan eligibility is conditional on numerous factors such as your monthly income, credit score, other continuing EMIs, etc. These rules differ from one lender to another.
The eligibility criteria are as follows:
Age Cap
If you are a paid employee, then the age limit is 21-58 years. The age limit for self-employed businesspersons and professionals is 25-65 years.
Monthly Income
Your annual monthly take-home is essential to approving your loan. Some lending firms have minimal monthly income criteria. However, at some lenders, the eligibility criteria are Rs. 25,000 per month.
Type of Employment
Some of the basic employment types are salaried employees, Self-employed people or professionals.
Employment Duration
If you have not been stable at one job, approval could be complicated.
For example, many lending companies allow loans to employees with at least two years of work experience and at least one year from your current company.
Furthermore, self-employed professionals must have a basic three years of experience. Some take into consideration your overall work experience.
Credit Score
This is a score allocated to you by a credit information company (for instance firms such as CIBIL and High Mark to name a few). It gives the considered lending institution a view about your history as a customer.
A healthy credit score also provides you with the bargaining power to adjust better loan terms for yourself. Some lenders have a minimum CIBIL Score condition of 700, others have 750. A score in the area of 700-900 is acceptable. Allahabad bank personal loan comes with added benefits.
Documents required:
1. Income statements
2. Bank statements
3. Salary slips and Form 16
4. Latest Income-Tax Returns
5. Credit report
6. Age proof (Aadhaar card, (birth certificate, voter ID, PAN card and the works)
7. Identification proof (Aadhaar card, voter id, PAN card, passport, driving license, etc.)
8. Address proof (Aadhaar card, passport, electricity bill, telephone bill, ration card, etc.)
Conclusion- Keep the above information in mind and you are all set.
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