Personal Loan
PERSONAL LOAN
We have minimal documentation requirements to apply for a personal loan. The essential documents include proof of identity, address, income proof, and few additional documents. Skip the hassle of visiting a banks and NBFCs – you can easily reach out to us for smooth loan with full satisfactions. Given below are some of the common documents required for completing a personal loan application:
Benefits & Key Features of a Personal Loan
From fulfilling your dreams to tackling unexpected expenses, a Personal Loan provides financial flexibility and convenience. Here are the key benefits of applying for a Personal Loan online.
Unsecured Loan
No collateral is required, so there’s no need to pledge assets like a home or car.
Flexible Use
The money can be used for a number of things by the borrower, like debt consolidation, paying for medical bills, wedding finance, or vacation expenses.
Quick Disbursal
Since personal loans are frequently disbursed promptly, they are a desirable choice for those with pressing financial demands.
Fixed Amount and Tenure
Personal loans are usually offered in fixed amounts with a specified repayment period, typically ranging from 1 to 5 years.
Fixed or Variable Interest Rates
A personal loan’s interest rate may be variable—it may change based on the state of the market or fixed—staying the same throughout the duration of the loan.
Repayment in EMIs
Over the predetermined term, the borrower repays the loan in Equated Monthly Installments (EMIs).
Credit Score Dependent
The borrower’s credit score has a significant impact on the personal loan’s approval and interest rate. Better terms are usually associated with a higher credit score.
How Personal Loans Help Individuals
Debt Consolidation
Many loans can be consolidated into one loan, which may have a lower interest rate and be simpler for borrowers to manage and return.
Emergency Expenses
Emergency medical bills, home repairs, and other pressing necessities can be quickly covered by personal loans.
Flexible Financial Planning
Personal loans give customers usage flexibility so they can finance important life events like weddings, trips, and schooling without using up all of their money.
Improving Credit Score
Paying back a personal loan on time can assist raise the borrower’s credit score, which is advantageous for when they need credit in the future.
No Need for Collateral
Personal loans are available to anyone, even those without valuable assets to stake, because they are unsecured.
Documents Required for a Personal Loan Application –
An unsecured loan given to an individual for personal use by financial organizations like banks, credit unions, or online lenders is called a personal loan. A personal loan does not require collateral, so you are not required to pledge any asset in order to receive the loan, unlike secured loans (such as home or auto loans). Usually, the loan amount is determined by the borrower’s income, creditworthiness, and capacity to repay.
Salaried Employees:
Identity Proofs
Voter ID, Passport, PAN Card, Aadhaar Card, Driving License
Address Proofs
Ration Card, Rent Agreement, Passport Copy, Aadhaar Card, Utility Bill, Voter ID Card.
Income Documents
Six Month Salary Slip & Bank Account Statement, 2 or 3 years of ITR Return or Form 16
Job Continuity Proof
Appointment Letter From the Current Employer
Mandatory Documents
Filled Loan Application Form, Passport Size Coloured Photograph and Signature Proof
Self-Employed
Identity Proofs
Voter ID, Passport, PAN Card, Aadhaar Card, Driving License, Maintenance Bill, Utility Bill, Property Documents, Rent Agreement
Business Existing Proofs
Copy of Tax Registration, Shop Establishment Proof, Company’s Registration Certificate
Income Documents
Last Six Months Bank Statement, ITR for the Last Two Consecutive Years
Proof of Residence
Maintenance Bill, Utility Bill, Property Documents, Rent Agreement
Mandatory Documents
Filled Loan Application Form, Passport Size Coloured Photograph and Signature Proof
Frequently Asked Questions
1. How can I clear my loan fast?
You can clear your loan faster by making regular, higher EMI payments, which can reduce the interest burden and help you become debt-free sooner.
2. Can I apply for a loan after rejection?
Yes, you can apply for a quick Personal loan after rejection. However, it's important to identify the reasons for rejection and take steps to improve your creditworthiness before applying again.
3. How to get a loan without registration?
Generally, loans require certain documentation for verification and registration purposes. It is important to provide the required documents to complete the loan application process.
4. Can I reduce my EMI Period?
Yes, you can reduce your EMI period by increasing the monthly instalment amount or making prepayments towards your instant Personal Loan principal.
5. Can I get a loan in two days?
Yes, when you apply for an instant Personal Loan online, approval is much faster and easier. We approve your loan application instantly, provided the right documents are submitted.
6. What do I need for a small loan?
For a small loan, you generally need to provide identification proof, address proof for KYC along with income documents, and bank statements.
7. Can we get a loan without interest?
No. You cannot get a loan without an interest rate. However, you can get the lowest loan interest rate depending on your credit score and other eligibility factors.
8. Which score is best for a Personal Loan?
A good credit score, typically above 700, is considered favourable for Personal Loan applications, increasing the chances of approval and securing competitive interest rates.
9. Does Personal Loan depend on salary?
While salary is an important factor, it is not the sole determining factor for Personal Loan approval. Other factors like credit score, employment stability, and repayment capacity are also taken into account. You just need to have a regular monthly income of Rs 20,000 to secure a Personal Loan.
10. How much loan is safe?
The safety of a loan depends on various factors, such as your income, existing financial commitments, and repayment capacity. It is advisable to borrow within your means and ensure EMIs are affordable.
11. How much EMI can I afford?
To determine your affordable EMI, consider your monthly income, expenses, and financial goals. Apart from it, use our online EMI Calculator to get an estimation of your monthly EMIs for better financial planning.
12. What are the minimum and maximum personal loan amounts?
Loan amount can vary from Rs 50,000 to Rs 5 lakhs.
13. What are the personal loan tenure options?
Loan tenure is up to 60 months.
14. What should be the minimum age of a salaried or self-employed person applying for a personal loan?
The minimum age to apply for a personal loan is 21 years.
15. How can I close a personal loan?
For closing/foreclosing your personal loan, contact us with all your documents like ID/address proof, EMI payment document etc. We will verify all your documents and issue a No Objection Certificate, stating that there is no outstanding balance that is pending. For any assistance, please contact our customer care team.
16. Do personal loans offer tax exemptions?
There is no tax exemption on personal loans in India.
17. What is the reason for rejection of a personal loan?
Some common reasons for personal loan rejection are a low credit score, incomplete details in the application form, job instability or too many existing loans. To avoid personal loan rejection, it is always advisable to discuss your case with the lender before applying for a loan.