Best Tips for Successful Personal Loan
Personal loans are unsecured loans that can be used to meet an individual’s short-term and long-term financial needs. Banks and Non-banking financial companies offer personal loans to salaried employees, retired pensioners, and self-employed professionals. Borrowers don’t have to provide any collateral or security to obtain personal loans. Borrowers can use the personal loan for any purpose, from marriage and travel expenditure to education and home renovation expenses.
Easy steps to make a successful Loan Application
Though most banks and Non-banking financial companies disburse personal loans on a daily basis to customers across the country, making a successful loan application is critical. Borrowers have to meet a specific set of requirements posed by the lenders to obtain the loan. Listed below are a few easy steps that can help an applicant make a successful personal loan application:
- First, borrowers have to ensure they meet the eligibility criteria set by the lenders. The list includes criteria such as age, income, occupation, and credit history of the borrower.
- Second, borrowers have to get their credit report, and check their credit score. Lenders will approve loans, and offer attractive interest rates to applicants with a good credit score.
- Third, borrowers should choose a bank or a non-banking financial company that offers a suitable personal loan, and apply to the chosen lender only. Multiple loan applications to several lenders will negatively affect the applicant’s credit score.
- Fourth, borrowers should furnish factual information such as address proof, annual income, and credit history with relevant documentation as lenders are bound to check the information provided.
- Fifth, borrowers should apply for a loan amount that can be repaid by them. Applying for an unreasonably huge loan amount that is not within the borrower’s repayment capability, can result in rejection of the loan application by the lender.
- Sixth, borrowers should have a steady and stable source of income to reassure the lender that the applicant has the ability to repay the loan on time.
Eligibility criteria to obtain Personal Loans
To obtain a personal loan, the borrower should meet the following eligibility criteria:
- Applicants should have a stable and steady income to repay the loan.
- Applicants should have a good credit history.
- Applicants should be between 21 to 60 years of age.
Documents required to apply for Personal Loans
The following documents should be submitted along with the personal loan application:
- ID proof.
- Address proof.
- Bank statements.
- Income proof (Salary slips for salaried employees).
- Guarantor’s ID and address proofs, if needed.
Interest rate and Fee details
Listed below are the applicable interest rate and fee for personal loans:
||Rs.50,000 to Rs.30 lakhs
||1 to 5 years
||12% to 20% p.a.
||Varies with banks
||Varies with banks
Banks offering Personal Loans for Self-employed Professionals
Here is a list of banks offering suitable personal loans for self-employed professionals: