Mumbai is a fast-paced and ever growing city. It can be difficult to maintain one’s finances, especially in the trying times like the current pandemic. However, a good way to keep on achieving your current goals can be through a personal loan. This article will tell you everything you need to keep in mind before choosing to apply for a personal loan.
What is a Personal Loan?
A personal loan is an unsecured loan to gain financial aid for immediate financial requirements. Collateral or security is not mandatory to secure a personal loan and the lender tends to be flexible with the use of funds. A personal loan can be opted for with EMI as well.
Reasons to choose a personal loan
- A personal loan can be used for a variety of occasions
- There is no required collateral for the personal loan
- One can withdraw an additional amount as needed and personal loan interest rates only apply to the amount you use.
- The personal loan can be prepaid any time after 6 months without an extra charge.
- One can consolidate your debts with a personal loan.
When to take a personal loan
Personal loans can be taken for a variety of reasons:
- A personal holiday or dream vacation
- A medical emergency in case you don’t have health insurance
- To pay for a child’s education abroad
- When there is a wedding to plan
- If one wants to revamp and renovate their home
Steps to take a personal loan
There are four simple steps between your goal and financial aid through a personal loan:
- Visit the lender’s online portal and fill in the form, this can be done offline as well
- Submit the required documents for the same
- The documents are verified by the lending agency along with a look at your credit history and CIBIL score
- Information with respect to your personal loan interest rate and loan tenure is sent to you for confirmation
Can you apply for a personal loan?
There are some criteria that need to be fulfilled for someone to be eligible for a personal loan
- A monthly income of at least Rs. 15,000
- Minimum age of 22 years
- Documents such as your PAN card number, CIBIL or credit score and other KYC documents
- Address proof must be submitted
- Copies of pay slips and bank statements
Personal Loans are a good way to cover urgent financial needs. You can apply for a personal loan for any reason, from a home renovation to a child’s education. The process can be initiated through the click of a button or a simple phone call to the bank representative.