Personal Loans are unsecured loans wherein the financial institution lends you money based on your creditworthiness without asking for any collateral. Most lending institutions provide Personal Loans ranging from INR 50,000 to 10 Lakhs.
A Personal Loan is probably the easiest way to receive instant funds you need for a medical emergency, an expensive purchase, funding a marriage, consolidating debts or home renovations. It is popular among borrowers due to its simple application procedure, rapid approval, and minimal documentation requirements, to name just a few.
Many of us might be unaware of the range of Personal Loans available in India. Read on to learn more about Personal Loans in India.
Let’s Understand the Eligibility Criteria for Personal Loans
The eligibility criteria laid down by new age lenders to avail of Personal Loans in India are as follows:
- The nationality of the person who is taking the loan must be Indian.
- The age of person who is taking the loan must be in the age group of 21 years and 58 years at the time of closing the loan.
- The person taking the loan has to be a salaried professional.
- The monthly salary should be at least Rs. 20,000.
Required Documents for Availing the Personal Loans
The following documents are necessary to get a Personal Loan online or offline:
- Passport size photograph
- Income documentation: last month’s salary slip
- Continuity of Employment Verification – Form 16
- Identity documentation (passport, PAN card, driver’s license, voter ID, Aadhar card)
- Residence Proof (Passport, ration card, Aadhar card, utility bill, voter ID)
Types of Personal Loans in India
There are numerous types of Personal Loan online. Here are some common varieties of Personal Loans that are available online.
Wedding Loans
India is well known for its lavish wedding customs. The wedding day is unquestionably one of the most important days in the lives of the bride and groom and their near ones. Therefore, everyone would love to make this day unique and unforgettable. When your plans include additional spending, you can go for wedding loans.
Wedding loans require less documentation for processing. The repayment tenure of the loan will range from 12 months to 48 months.
Travel Loans
It can often be expensive to take a vacation, especially one to abroad. You can always ask for a travel loan to lessen your financial load while travelling with your loved ones to a luxurious destination. A travel loan is a Personal Loan you can use to pay for your vacation costs.
The application process is simple, and the loan approval is speedy. You may often get a travel loan for up to 10 lakhs from a financial provider. The loan has a maximum 1 to 4 years payback term.
Home Renovation Loans
You can get this type of Personal Loan in an easy way. A home renovation loan is a Personal Loan provided by an NBFC to pay for the costs of remodeling your cherished old home. When you repair your old house, not only do you get a great place to live, but its market value also increases significantly.
The loan amount can be up to INR 10 lakhs. A home improvement loan has a maximum of a 4-year payback term.
Educational Loans
In addition to secured loans for education offered in return for collateral, many loan providers now offer Personal Loans for education to help you pay for further education. You can use this loan for education to cover additional academic obligations, tuition, and housing costs.
Most financial institutions provide you with a Personal Loan for up to 10 lakhs to cover education-related costs. A Personal Loan taken out to pay for education can have a term of up to four years.
Loan to Consolidate Debt
People frequently take a Personal Loan with a lower interest rate to pay off a higher-interest loan, such as credit card debt. Debt consolidation is when you obtain a new loan with a lower interest rate to repay your old debts. You might get a Personal Loan from several NBFCs for up to INR 10 lakhs to consolidate your debt.
Conclusion
A Personal Loan can save your life in a medical emergency or enable you to have the lavish wedding of your dreams. You may use one of the most adaptable loan products available on the market to pay for a range of costs.
Go for unsecured Personal Loans with a minimum documentation process and instant approval to manage additional expenses.
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