Personal Loan is a kind of unsecured loan people take for their personal needs like a wedding, education, medical, holiday etc. Borrowers get an amount of money from bank or NBFC basing on their credit score, repayment ability etc. Personal loan providers check these things to ensure that if the applicator has the ability to repay the loan. A personal loan has a fixed interest rate.
The interest rate for personal loan starts at 10.99% which is pretty high as compared to other loans. But keeping it in mind that you don’t have to mortgage anything and the documentation is very minimal the interest rate is not that bad. Your interest rate depends on your credit score if you are a self-employed how much your salary is etc. You have to repay that amount on a fixed tenure of twelve months to sixty months.
Benefits of Personal Loan-
- Minimum documentation.
- You don’t have to disclose the reason why you are taking it.
- The interest rate is not so high.
- It makes your credit score high if you repay it timely.
- The interest rate is fixed.
- The disbursal time of a personal loan is very fast. If you meet all eligibility criteria it takes 72 hours.
- Last but not least you don’t need any guarantor for this loan.
Eligibility of Personal Loan-
- Minimum age of 21 years and maximum of 60 years.
- Minimum 2 years of work experience if self-employed minimum 2 years of business experience.
- Minimum income 25,000
- Minimum CIBIL score 650
- The applicant should have an account in this bank.
Documents require for approving a personal loan
- Pan Card
- Adhaar Card
- Voter’s ID
- Passport Size Photo
- Salaried: Last 3 years of PAYSLIPS, 6 months’ salary account bank statement.
- Self – employed: IT files for last 2 years, Financial Documents, last 6 months primary account statement of a company.
- Installments applicant is currently paying, all the numbers of credit cards and credit limit applicant has.
PROOF OF EMPLOYMENT / BUSINESS CONTINUITY
- Salaried: Form 16 or appointment letter of 2 years earlier.
- Self Employed: Tax registration certificate of dated 2 years or an earlier period.
Top 10 Personal Loan Providers in 2019
|Bank or NBFC Name||Current Interest Rate|
|Yes Bank||Starts from 10.75%|
|Indiabulls Dhani||Starts from 11.99%|
|Kotak Mahindra Bank||11.00%-24.00%|