PERSONAL LOAN ? INTRODUCTION, REQUIRED DOCUMENT & INTEREST RATE.

Posted by Anurag Mishra on July 20th, 2017

In this article, we are discussing on Person Loan. Now the question is that, what is personal loan, eligibility for personal loan, interest rate of personal loan & who will provide the personal loan.

What is Personal Loan

Personal loan as the term itself says a loan taken from the bank purely for personal reasons. It could be for wedding, vacation, to conduct some other functions, medical emergencies or any other personal related reasons. This is the only unsecured loan which is provided to the public unlike home loan and car loan. These days for many of us it is difficult to raise a big amount suddenly either because we don’t have sufficient cash or it is could be because our money is blocked in some investments or fixed asset. Hence personal loan comes as a relief for all those who need immediate cash. Hence personal loan as the word suggests it is a loan taken purely for personal reasons.

Eligibility

The Personal loan is like instant cash which one gets from the bank after evaluating the income of a person. The individual who takes loan could be a salaried, businessman or any other person who is having a regular income.

Apart from evaluating the income level then financial institutions and banks also consider the age of a person, he/she should be of minimum age of 21 years. Even if both the criteria are satisfactory there is one more very important aspect which they check i.e. the CIBIL score. CIBIL score is nothing but it is checking the creditworthiness of a person where the information is collected from other banks with which the customer has dealt with. Once the information is collected then the CIBIL score is calculated which generally ranges between 300-900, where 300 standing low and 900 being the highest. Any score above 750 will get the loan without any hassle.

Providers

These days the competitions are so much that there so many banks which provide the personal loan at a competitive price. Personal loans are provided by public sector banks, private banks, financial institutions and non-banking financial institutions.

Document Required

General documents asked by the banks while providing personal loan for salaried person;

• Duly filled application form
• 4 to 5 recent photographs
• Age proof (like PAN Card, passport or 10thstd marks card)
• Address proof (Passport, Aadhar card, Driving License, election card)
• ID proof (PAN Card, Aadhar card, DL, election card etc.,)
• Salary slips of the last three to four months (Latest)
• Bank statement of last 6 to 8 months (Salary account)
• Employment proof like a letter from the organisation and the employee ID

General documents asked by the banks while providing personal loan for Self-Employed

• KYC Documents like identity proof, address proof, age proof
• Residence proof like a rental agreement, gas bills, electricity bill not older than three months. If the passport was taken based on the permanent address, then can also be provided
• Personal bank statement of last 6 to 8 months
• Company account bank statement of latest 6 to 8 months
• Office registration documents
• Proof showing that the business is in existence.

The list provided above is only indicative and exhaustive. It differs from bank to bank and it is at the discretion of bank as to what documents they require from each person. When an old customer who is holding an account with a particular bank for more than 10+ years obviously the trust they have on him/her will be more and hence documents asked will be less and scrutiny will be less. But that is not the case with a new customer who is requesting for a personal loan. In such cases, the scrutiny is higher and hence the documents that will be asked of such people will be more.

Interest Rate & Tenure

The interest rate of personal loan ranges between 11.25% to 37% and generally, the tenure period is no longer than 5 to 7 years generally. There is also processing fee charged by the banks but differs from bank to bank.

If you have needed a personal loan and you want to check your payable EMI and total payable interest. You can check it through given below link by filling the loan amount, loan tenure & interest rate.

Visit Link: EMI Calculator

{Source: www.emicalculator.guru/personal-loan-introduction-required-document-interest-rate/}