What is a personal loan?
A personal loan allows you to borrow a lump sum of money, and then repay that amount (interest plus principal) in installments over a certain period of time. Generally, the loan period is 1-5 years. The banks and financial institutions may offer personal loans up to fifteen lakhs which may be used by the borrowers to meet their personal expenditure.
What type of personal loans are there?
The types of personal loans provided by the banks and financial institutions are listed herein:
- Secured: This is a type of loan where you require sufficient collateral as security against the loan amount. If there is any default on the loan repayment, the lender has the right to seize the assets.
- Unsecured: This is a type of loan where you do not require any asset to secure against your loan amount. This type of loan is generally provided to professionals like Chartered Accountants, Doctors, Engineers, etc having a certain period of work experience.
How can I apply for a personal loan?
Once you have found the best financial institution for your personal loan, you need to furnish certain documents as required by the banks and financial institutions which have been mentioned herein:
● Copy of Citizenship
● Copy of PAN card ( loan amount equals or above 5 million)
● Recent PP size photograph
● Copy of Office ID
● Salary Certificate from the Employer
● Personal Bank Statements (at least 6 months)
For self-employed or professionals:
● Copy of Professional Qualification
● Certificate from Professional Institution
● Firm/Company registration certificate
● Two years of audited financial statements
- Copy of Citizenship
- Copy of PAN card ( loan amount equals or above 5 million)
- Recent PP size photograph
- Copy of Office ID
- Salary Certificate from the Employer
- Personal Bank Statements (at least 6 months)
- Copy of Professional Qualification
- Certificate from Professional Institution
- Firm/Company registration certificate
- Two years of audited financial statements