What is Personal Loan Easy Guide 2022

What is Personal Loan?

Hello friends, all of you will have a question in your mind that what is a personal loan, how to take a personal loan or how to get a personal loan.

Today in this post we are going to answer all the questions related to your personal loan like what is personal loan, how to take personal loan – how to take personal loan, eligibility to take personal loan, payment deadline etc. are the ones.

In today’s time, money has become very important, for every small and big work, money is needed first of all, without money there is no work.

Building a house, getting a car, marriage, household expenses, illness and so many other types of expenses are involved and money is needed to fulfill all these.

And they cannot be completed without money, many times a situation comes that we need money for all these or any other work and we do not have or have less money.

Then we ask for money from a friend or relative and many times it happens that they also refuse saying that they do not have money yet.

Taking a loan in such situations becomes very helpful and profitable, in this also taking a personal loan is even more easy and beneficial as it is different and easier than other types of loans.

But before taking a loan or applying for a loan from any bank or financial institution, we should know about the process of that loan because without information or incomplete information can put us in trouble.

So let us understand all the aspects of personal loan in detail.

What is Personal Loan?

Personal loan means personal loan, when a loan is taken by a person from a bank or any other financial institution to meet his personal needs (building a house, getting a car, marriage, household expenses, illness, etc.) So it is called personal loan.

A person taking a personal loan can use the money taken through personal loan to fulfill any of his needs and there is no relation with the bank or financial institution.

But before applying for a loan with any bank or lending institution, you should know the right way to apply for the loan.

You should know how to take a loan – application method, eligibility, requirement, payment plan, all these things should be considered first, then let us know about them.

How to get a personal loan?

Before applying for a personal loan, it is very important for you to know how to take a personal loan, what is the right way to take a personal loan so that you do not face any problem later.

Determination of Need

Before applying for a personal loan anywhere, you should think about your requirement, for what purpose and how much money you need.

Many times banks or loan providing institutions are ready to give you more loan than you need or provide more loan if your salary and other records are good.

But we should always take loan according to our requirement and repayment capacity because later we have to pay interest along with the loan.

Personal Loan Eligibility

Before applying for a loan anywhere, you should know whether you are eligible to take a loan? You will find many such apps on the Google Play Store on which you can provide your information to know whether you are eligible to take a loan or not.

It is also important to know your eligibility before applying for a loan because if you apply for a loan without knowing your eligibility or contact for a loan in any bank and if they refuse, then it will help you. There is a bad effect on the civil score.

In order to be eligible to take a personal loan from any bank or financial institution, you should know these things =>

  1. You must be a citizen of India.
  2. Your age should be between 18 years to 60 years.
  3. You should have a stable monthly income source (job or business)Your monthly income should be minimum job – 18000 business – 15000.
  4. If you fulfill all these conditions then you are eligible to take a personal loan, now how much you can get the loan depends on your monthly income and your civil score.

Generally banks can provide personal loans ranging from twenty thousand to five lakhs according to your income and civil score.

Personal loan default plan to

If any work is done with a plan, then it becomes easy to do it and the chances of its success are also high.

So before taking a personal loan, you should have a complete plan to repay your personal loan like how much loan you will take, for how long, what should be the monthly installment.

Where will the installment payment of the loan come from, it will not put much extra burden on your income and expenses as it can upset your monthly income-expenditure balance.

Considering all these things, you should plan your personal loan repayment well in advance. There is also an advantage of this that if you plan in advance and pay off your personal loan on time, then your credit is built up.

Your civil score remains good and you can easily get more loan when you need it again.

Apply for Personal Loan

After knowing all the things, checking eligibility, making a loan repayment plan, you should prepare all your documents and apply for a personal loan.

First of all, you should apply for a personal loan in the bank where you have your salary or current account, in which there are regular transactions, because if they already have your account then they will trust you.

And will provide you a quick personal loan, since personal loan does not require any kind of guarantee or valuable item, hence it is the most risky loan for the bank.

That is why he considers it good to provide personal loan only to trusted persons, then if you have an account in that bank then he will easily provide you personal loan.

But it is not that you can apply for personal loan only where you have an account, if your civil score is good, your documents are correct then you can apply for personal loan anywhere and any bank or personal loan You can take a personal loan from the providing institution.

So far we have learned what is Personal Loan and how to take Personal Loan – What is the right way to take a personal loan, let us now know why to choose a personal loan.

Why Choose Personal Loan – Benefits of Personal Loan

Banks and financial institutions provide many types of loans like home loan, car loan, business loan but there are some reasons why we should choose personal loan. Let us know =>

Use Anywhere

The biggest advantage of personal loan is that you can use the money received from personal loan to fulfill any of your work, need or needs like building a house, marriage, getting a car, paying off any other loan or any other task. .

There is no binding on you in a personal loan as in other types of loans and this makes a personal loan different from other loan types.

No Guarantee Needed

A special feature of a personal loan is that it does not require you to keep any guarantee or valuables like other loans.

The financial institution or bank providing personal loan provides you personal loan only on the basis of your documents and civil score, for this neither you need to give any guarantee nor keep any kind of item.

Paperless Documentation

A personal loan requires very few documents as compared to any other type of loan and the process of documentation is also very easy.

If you apply for a personal loan online on the website of a bank or financial institution, you can complete the documentation process in one go by submitting your documents online.

Early Approval

Personal loan gets quick approval as compared to other loans like home loan or business loan and soon the personal loan amount is credited to your account.

The loan approval time limit may be different in different banks, but in most of the banks in 5 to 10 days personal loan is available and money is credited in your account.

Many online loan providing institutions like Pay Sense etc. approve your personal loan in two days and the loan money comes in your account within five days.

Loan repayment tenure as per convenience

Another advantage of a personal loan is that you get the facility to repay the loan in installments as per your convenience, so that you do not have to pay the entire loan in one go.

You can make your personal loan tenure and monthly installments as per your capacity and repay your personal loan in installments as per your convenience.

Documents required for personal loan

You do not require much documents for personal loan and the documentation process of personal loan is also very easy, generally these documents are required for personal loan =>

Personal Loan Documents

  1. 2 passport size photographs
  2. ID Proof (Aadhaar Card / Valid Driving License)
  3. Address Proof (Aadhaar Card / Electricity Bill / Rent Agreement)
  4. Income Proof (2 Months Salary Slip / Income Tax Return)
  5. PAN card (if required)

Where can I use personal loan?

You can use the money received from the personal loan to fulfill any of your work, needs or worries like building a house, getting married, getting a car, paying off any other loan or any other task.
Fifth note of musical scale There is no binding on you in a personal loan as in other types of loans and this makes a personal loan different from other loan types

What is the interest rate of personal loan?

The interest rate of personal loan can vary among banks and loan providing financial companies, generally the interest rate on personal loan ranges from 13% to 24% p.a. which depends on many different factors like loan amount. Amount, your income, loan tenure etc.

What is the eligibility to take a personal loan?

To take a personal loan, you must be a citizen of India, your age should be between 18 years to 60 years, your minimum monthly income should be Job – 18000 Business – 15000.

How long does it take to get a personal loan approved?

Generally, it takes 5 to 10 days for personal loan approval in banks and money in the account, but many private loan providing companies approve the loan in 2 to 5 days and give the money in your account.

Can I repay the personal loan prematurely?

Yes, you can prepay your loan. Many times it happens that we take a loan and then within a few months we get the money before the loan tenure is over, so we can pay our loan ahead of time, for this you have to pay foreclosure fee After that you can get rid of your loan.

We have provided here all the information related to personal loan like what is personal loan, how to take personal loan – how to take personal loan, eligibility to take personal loan, time limit for repayment etc. has done.

If you still have any query related to personal loan in your mind, then do let us know in the comments section, we will be more than happy to answer your questions.

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