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PERSONAL LOAN
"GST registration is essential for legal business operations and unlocking tax benefits."
Enquiry for Personal Loan
A personal loan is when you borrow money from a bank or a lender for personal use, like if you want to consolidate some credit card debt, make a big purchase, or maybe tackle a home improvement project. Unlike a credit card, where you just use it whenever you need to buy something and pay interest on the balance, a personal loan gives you a specific amount of money upfront, and then you pay it back with interest over a set period, like a few years. The cool thing is that personal loans often have lower interest rates than credit cards, so they can save you money if you're careful. Plus, you usually don't have to put up any collateral, which means you're not risking your house or car if you can't pay it back, although missing payments can really mess with your credit score. Overall, they can be a good option if you need to borrow money responsibly and have a solid plan to pay it back!
BENEFITS OF A PERSONAL LOAN
1.Collateral Not Needed Since personal loans are unsecured, you are not required to pledge assets such as fixed deposits, real estate, or gold.
For instance: You can obtain a personal loan without jeopardizing your assets if you require immediate medical funding.
2. Fast Approval and Payment Particularly for clients who have already been pre-approved, several lenders provide same-day disbursement and fast approval.
For instance: internet applications can provide you with funds in as little as 24 hours if you need them for an emergency or wedding.
3. Adaptable Use A personal loan can be used for anything, including:
a) Emergencies related to health
b) Marriages
c) Improving a home
d) Consolidating debt
e) Costs associated with education
f) Vacations & travel
For instance: A personal loan can be used however you like, unlike home or auto loans, which have specific uses.
4. Limited Documentation The majority of banks and NBFCs just need the most minimal paperwork:
a) Income Proof (Salary Slips/ITR)
b) Bank Statements
c) PAN Card & Aadhaar Card
For instance: If you are a salaried employee with a consistent income, clearance is quicker and requires less paperwork.
5. High Loan amounts You may be eligible for loans of up to ₹50 lakh or more, contingent on your income and credit score.
For instance: A professional who makes ₹1 lakh a month could be eligible for a high-limit personal loan.
6. Competitive Interest Rates Salaried people with strong credit scores receive cheaper interest rates, which normally range from 10% to 24%.
Advice: You can get the best rate if your credit score is higher (750+).
7. Adjustable Repayment Tenure The majority of lenders provide tenures ranging from 12 months to 5 years, with some even offering up to 7 years.
For instance: You can select a longer tenure for lower EMIs or a shorter tenure for faster repayment.
8. Enhances Credit Score Paying back your personal loan on time might raise your credit score, which will make it simpler to obtain new loans in the future.
Advice: Always make your EMI payments on schedule to prevent your CIBIL score from suffering.
ELIGIBILITY CRITERIA FOR AVAILING PERSONAL LOAN
| Eligibility Criteria | Salaried Individual | Self Employed |
|---|---|---|
| Classified | Permanent/confirmed employees of reputed Pvt. institutes/organizations in India | Non-salaried individuals having regular source of income |
| Income Per Month | 15,000 rupees | 25,000 rupees |
| Stability | Employed with a stable job history | Business owner have a stable and profitable business |
| Bank Account | Active Bank Account | Active Bank Account |
| Credit Score | Have a good credit score | Have a good credit score |
- FAQ
1.A personal loan: what is it?
A personal loan is an unsecured loan that people can take out for a number of reasons, including debt consolidation, weddings, medical costs, education, vacation, and home improvement. It is paid back in set EMIs and doesn't require collateral.
2. For whom is a personal loan available?
Salaried Workers: People who work for the government or private sector and have a steady income.
Self-Employed People: People who operate their own businesses, work as freelancers, or are professionals like physicians and lawyers
Pensioners: Some banks provide loans to retired people who have a monthly pension income.
Hint: Your salary, credit score, and job stability all affect your eligibility.
3.What are the lowest and highest loan amounts?
Each lender has a different loan amount:
Maximum: ₹50 Lakh (or more, depending on qualifying);
Minimum: ₹10,000 to ₹50,000
For instance, a salaried person earning ₹1 lakh per month can obtain a loan of up to ₹25 lakhs.
4. What is a personal loan's interest rate?
Interest rates vary from 10% and 24% annually, contingent on the
following factors:
Credit Score (a higher score translates into a lower rate);
Income and Employment Stability;
Loan Amount & Tenure
Advice: You're more likely to receive a reduced interest rate if your credit score is 750 or above.
5. What is the duration of loan repayment?
Usually, loans last between 12 months and 5 years, though they can occasionally last up to 7 years. Longer tenures result in higher total interest paid but cheaper EMIs. For instance, you will pay less interest on a ₹5 lakh loan for three years than you would if you took it out for five.
6. How Do They Determine the Loan Amount?
Your monthly income (more income equals a larger loan amount), credit score, current EMIs and liabilities (debt-to-income ratio), and employer and employment stability are the factors that lenders use to establish your loan eligibility. A word of advice: Lenders typically give loans up to 30–50% of your monthly income.
7. How long will it take to repay the loan?
Although they can sometimes extend up to seven years, loans typically endure between twelve months and five years. Longer tenures lead to lower EMIs but greater overall interest paid. For example, if you take out a loan of ₹5 lakhs for three years, you will pay less interest than if you take it out for five.
8. How Is the Loan Amount Calculated?
Lenders determine your loan eligibility based on your credit score, present EMIs and liabilities (debt-to-income ratio), employer and employment stability, and monthly income (the higher your income, the larger the loan amount). As a general rule, lenders will only lend up to 30 to 50 percent of your monthly income.
9. Is a credit score required to obtain a personal loan?
Yes, but you might not have many choices. Some lenders base their personal loan offers on the following:
✅ Bank account transactions
✅ Pay stubs and employment documentation
✅ Bank relationship
🔹 Advice: To establish a credit score if you don't already have one, think about beginning with a secured credit card.
10. What Records Do I Need to Get a Personal Loan?
The majority of lenders need identification proof, such as a passport, PAN card, or Aadhaar card.
✅ Proof of Address: Passport, Utility Bill, and Aadhaar Card.
✅ Proof of income: pay stubs for salaried individuals, ITRs for self-employed individuals, and bank.
Statements for the previous three to six months
🔹 Advice: Some banks provide their current clients with pre-approved loans that require less documentation.