How to Manage Financial Crisis with a Personal Loan?

The funds are transferred quickly, within 2 to 3 days of the loan application approval, into the bank account of the borrower. Thus, a personal loan is opted for financial emergencies and personal expenses such as education, travel, medical emergency, home repair or renovation, vehicle repair, etc.

Like discussed, a personal loan is a loan where the bank does not ask for a security. Thus, no asset of the borrower is kept with the bank until the loan is closed. The loan can be used for several purposes at once, even for debt consolidation. A personal loan also acts as an emergency loan for a big amount, ranging between Rs. 1 lakh and Rs. 1 crore on tenure between 1 year and 5 years. The starting interest rate is 10.99%.

Below-given are features and benefits of the loan.

1) Minimal documentation

2) Hassle-free application process

3) Quick disbursal of funds

4) Multi-purpose loan

5) No collateral or guarantor required

To apply for a personal loan, borrowers need to fulfill the following eligibility criteria:

1) Must be at least 23 years of age

2) Work experience of at least 2 years

3) Must be employed with the current employer for at least a year

4) Minimum monthly salary should be Rs. 25,000

5) CIBIL Score should be 700+

6) There should not be too many ongoing loans

Below-mentioned are documents needed to get a personal loan

1) Basic KYC documents such as government recognized identity proof and address proof.

2) PAN card is mandatory.

3) Any of the other proof for identity/address proof such as Voter ID card, Aadhaar Card, Driving Licence, etc.

4) Latest bank statement of a year or 6 months

5) Proof of salary, such as salary slip or salary statement

A personal loan can be either applied online or offline.

1) Online Process: Visit the website of the financial institution of choice to access the online application form to a personal loan and fill the required details such as loan amount needed, monthly income, residential address, KYC details, etc. The applicant will get an option to upload the soft-copy of required documents. After submitting the application, a customer executive will get in touch to discuss further. When the loan application gets approved, funds would be disbursed to bank account of the borrower.

2) Offline Process: Here, the applicant has to visit the bank or NBFC branch to enquire about the loan and get the application form. Fill the details asked in the form correctly and submit it in the bank. Required documents need to be attached with the application before submission. After the application approves, funds get transferred to the bank account of the borrower.

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