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Personal Loan

Personal Loan

What do you comprehend when you listen to the word Personal loan?

Indeed, it is unstable credit acquired from banks or non-banking monetary organizations to meet the individual necessities of individuals. As we referenced this is an unstable advance which implies the borrower set up no guarantee like property or gold to profit it. All in all, how the bank specialists will choose to furnish you with individual credit or not? It absolutely relies upon a few vital elements and they are:

  • Credit Score
  • Work History
  • Pay and Expense
  • Banking Activity
  • Financial assessment
Credit Score

One of the most considered factors is financial assessment. Bank assesses your financial assessment based on FICO range which goes under 300-850 and you ought to hold your financial assessment between these reaches and in the event that it is 850, being best is thought of.

you are having, everything impacts your FICO assessment and before you apply for individual advance you ought to check your FICO assessment for your own reference.

Work History

Other than FICO rating another significant component is work history. Bank will assess your work history and check for a few central issues like the amount you have jumped starting with one work then onto the next, assuming that there is any span or hole in your business or kind of occupation you are involved, risk estimation of the market in which you are working and in the event that you are independently employed, you could need to confront difficult task to endorse your credit application cause they will ask you more reports than expected so to ensure that they will get back what they had given you.

Pay and cost

The other variable which influences the most is the borrower's pay and costs. It is vital to consider the component of how much an individual is getting compensated as this is unstable credit and bank need the confirmation that they will get back the given sum. Banks ascertain your pay against your current obligation or we can say they will compute the relationship of debt to salary after taxes.

Banking Activity

The record of banking exercises helps a ton an investor to examination regardless of whether the credit ought to be conceded to you. A few exercises like piling up various charges, making inordinate withdrawal and overdrawing your record could really prompts warning.

How to apply for Personal Loan

Suppose minakshi wants to apply for personal loan but she is not sure what steps she needs to follow in order to get the things done sequentially. So, if you are in a situation like minakshi is dealing with, here we are providing you with three simple steps you need to follow to apply for a personal loan.

  • Check Eligibility as per your current scenario
  • Smartest move- compares the interest rate
  • Apply Online
Check Eligibility

It is important to check the eligibility as it affects a lot of the whole process for applying for loan. Every bank has their own set of rules and criteria and if an applicant wishes to get the loan, one should meet those criteria.

Comparing The Interest Rate

This is smartest move you can take while applying for personal loan. Each bank has its own interest rate and it will play a crucial role deciding for EMI. So it is good to compare the interest rate and then decide where you need to apply.

Apply Online

Last but not the least after deciding the lender, you need to visit to their portal and apply for loan online and fill the application form.

Now let’s get a glimpse of how things move ahead from checking the eligibility to applying online for loan.
Application Form Details

In order to apply for personal loan one should fill the application form which asks for your personal as well as professional details. Below are some details they ask for:

  • Name of the applicant: You need to mention your name correctly as per your other official document
  • Residential Details
  • Apply Online
  • Purpose of Loan: You should mention valid reason on the need of loan
  • Income Details : It is different for both salaried and self-employed Individual
Personal Loan Eligibility

You can turn your dreams into reality by taking the personal loan with right knowledge of requirement. Suppose Rahul and Raj is two friends and both wants to take personal loan for their needs. But to apply for a loan both of them need to fulfill some different eligibility criteria and you know why?

This is because Rahul is a manager of a reputed company whereas Raj is self-employed and running his own small business. The norms by bank for both the people are different and if they met the requirement they will easily get the loan from bank.

So, let’s have a brief look over the eligibility criteria a salaried individual and a self-employed person need to go through with to qualify from applicant to borrower.

Eligibility for Salaried Individual

The minimum age of applicant should be 21 years

The maximum age considered to be 60 years

The applicant should hold a minimum 1 year of experience in his/her job

The net monthly income should be Rs 15000

Eligibility for Self Employed Individuals

The minimum age of applicant should be 24 years

The maximum age considered to be 65 years

The applicant should hold a minimum 3 year of experience in his/her job

The minimum net annual income should be Rs 1 lakh

Documents Required for Personal Loan

Now we have understood what Rahul and Raj what requirements Rahul and Raj needs to fulfill in order to get the loan. Suppose both of them have qualified the criteria and are eligible for the loan. Let’s have a look over the documents which they need to submit to bank.

Document for Salaried Individual

The person should fill loan application form correctly

They should provide 2 passport size photos

They must provide the bank their Identity Proof; it can be anything like Pan Card, Driving License, Adhaar card etc

They need to provide Salary slips of last 3 months

Residence proof must be given by applicant

Signature proof should be provided to bank

And last but not the least last three months bank statement

Document for Self-Employed Individual

The person should fill loan application form correctly

They should provide 2 passport size photos

They must provide the bank their Identity Proof; it can be anything like Pan Card, Driving License, Adhaar card etc

The applicant should provide office residence proof

The applicant should provide with Income Proofs like Audited financials for last 2 years

They need to provide past 6 months bank statement

Last but not the least employment proof and signature proof

Personal Loan EMI Calculator

We have mentioned above that it is very much important to compare the interest before you apply online likewise it is necessary to calculate the EMI also. Suppose there were two friends Ram and Sham and both of them applied for loan and eventually met the criteria and successfully received the loan too. But, after some duration sham was unable to pay the EMI amount whereas ram is paying all his monthly EMI on time.

Now let’s look on both the scenario. Ram has compared and calculated his monthly income and he analyzed if the EMI will be pocket friendly for him as per his income and expense. On the other hand, sham neither compared nor calculated the amount and with blind eye he just applied for the loan and now his income and expenses is not allowing him to repay his EMI on time.

So, always remember a successful borrower always look for interest rate from different banks and calculate the EMI too in order to avoid default in payment. Personal loan helps you to get what you dreamed of with some simple steps of rule you need to follow.

Personal Loan: Choose Wisely and Smile Happily.
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