Buying a house, a car, or traveling the world is a dream for many. However, fulfilling this dream requires savings and an excellent monetary backup. You can use a personal loan to fulfill your entrepreneurial dreams even if you have no savings or backup. A personal loan is the one loan that does not need collateral or security and is offered with minimal documentation. Like business loans, personal loans can be an extremely useful and prompt financing option for your business. You can find below how to get personal loan quickly and easily.
Unlike other loans like home loans or gold loans, which require heavy documentation and may also have a tiring approval process, personal loans are comparatively easy to avail of. They are often availed of with minimum documents, and also their approval process is easy and quick. The loan amount is approved and credited within a few hours, if the lender is satisfied of your documentation and repayment capacity.
Another attribute of a personal loan is that the lenders offer you the flexibility to choose your loan tenure. You can get both short-term and long-term personal loans. Usually, the tenure ranges from one to five years. So, you can select the loan term based on your repayment capacity.
Once you decide on the reasons for a personal loan and the amount you need, you should check whether you are eligible to get a personal loan and the maximum amount can avail of with different credit providers. The maximum amount you can avail of depends on your employment history, repayment capacity, income level, profession and credit history.
You can use an EMI calculator online to estimate your personal loan attributes. For example, you can calculate your monthly loan repayments and reach a conclusion on the interest rate and tenure to match your monthly income with the help of the EMI calculator.
After you calculate your estimated EMI, you can apply for a personal loan with your lender through net banking, online banking websites, or visiting a branch.
First, find out the documents required to apply for a personal loan. The documentation varies from lender to lender. However, some of the essential documents you must provide along with the personal loan application form include:
- Proof of income (Salary statements, Income Tax Returns)
- Proof of residence and identity proof (Aadhar card, Voter ID card, etc.)
- Certified copy of your degrees and licence (For self-employed applicants).
Hand over the documents mentioned above for the personal loan application at the bank. Then, wait for funds to be remitted to your account after the bank’s verification process. There is another option that is available for you, which is the paperless personal loan process. You can avail of a personal loan online by following the process mentioned below:
Step 1: An online loan application form with all the details such as personal information, employment details, and financial data.
Step 2: Select the required amount and repayment tenor.
Step 3: Submit a soft copy of the required documents to your service provider.
Step 4: Receive approval on your instant personal loan.
The eligibility criteria required for a personal loan are given below:
- Age: 20 to 60 years
- Salaried employee working with a private or public company or an MNC.
- A citizen of India
- You must earn at least the minimum salary as per your city of residence.
The main documents required for availing a personal loan are:
- Identity proof: PAN card, Aadhaar card, ration card, driving license, electricity bill, passport, or any other document issued by the Government of India with your name and photo affixed on it.
- Address proof: Aadhaar card, ration card, driving license, electricity bill, or, passport.
- Employee Identity card: A proof of employment like a job letter, or identity card.
- Financial information: Salary slips for the last two months, Form 16, and the previous three month’s statement of salary account.
The above information provides you with all the necessary details on how to get personal loan. Then, you can opt for either the traditional or the paperless personal loan method of availing of the personal loan, whichever suits you the best.