It is quite common we plan to go on a tour or get married or make an alteration to your home etc.
Then there is a requirement for instant cash which is most likely in five figures.
This amount of money can be availed as personal loans from banks as they are the best options.
The personal loans are quick and reliable in terms of getting sufficient funds provided there is sufficient for loan recovery.
Instead of borrowing money from friends or local money lenders for a higher rate of interest, personal loans are the best option.
They have a nominal rate of interest and repayment options are easy and even in installments.
A personal loan is intended for personal use i.e. without mentioning any specific way of how you plan to spend the loan amount availed.
There is even proper verification that you intend to spend the funds for the item mentioned in the loan application.
While this is not the case in personal loans.
Even you need not provide any security for the loan like immovable or movable property assets etc.
Your personal monthly or annual income is used as proof of your earnings and the loan is sanctioned on the basis.
Personal Loan Eligibility criteria for most banks:
1. You must be an employee in the government or private sector.
2. You can also be self-employed as a professional Ex: doctor chartered accountant etc.
3. Must be above 21-25 years of age and not more than 60 years (for some professional or banks 65 years)
4. You must be working for at least 2 years and for at least one year in the present company.
5. Preferably you must have a degree or acceptable educational qualification.
6. Your annual income should be at least in 3 figures and varies by banks.
7. You must provide proof of your identity, residence, proof of income by last 6 months bank statements, income tax returns if any.
8. Guarantor is optional for banks.
9. Must be willing to repay the loan on a monthly installment basis within a specified time.
10. Must open or have an account in the said bank.
You need to provide all the documents supporting your identity, your residence, education, nature and place of work, monthly income statements (from a bank account) and income tax returns, etc. as proof of your eligibility claims.
Opinion on Personal loan:
Any loan from a bank is a burden yet personal loans can be availed for the following purposes.
1. Mini investments like buying gold or ornaments.
2. When you fall short of finances for important needs like honeymoon or marriage etc. Since delaying them will lose the actual happiness.
3. Try to avail as much a small amount as loan as possible.
4. Check the interest rates for the loan and see if you can afford to pay it on monthly basis.
5. Personal loans charge heavy interest than normal loans depending on your salary. The low is the income of the borrower, the high is the interest. So think about the rate of interest once before you avail the loan.