A personal loan is a multipurpose unsecured loan that can prove to be extremely helpful in meeting financial requirements. Banks and other Non-Banking Financial Companies [NBFCs] do not ask the applicant about the purpose behind availing a personal loan. As a result of this, you can change the purpose of your personal loan and use the loan amount as per the situation.
Therefore, a personal loan can be used for various purposes such as repaying credit card debt, managing medical expenses, home renovation, taking care of wedding expenses, etc. Due to this flexibility offered by personal loans, they have gained massive popularity in recent times. With the help of leading financial institutions, it is possible to avail a personal loan online through a hassle-free online application process.
Lenient eligibility criteria, minimum personal loan documents, instant approval, and swift disbursal are some of the added advantages of availing a personal loan with leading financial institutions.
Documents required for a personal loan
The personal loan documents list required to avail a personal loan available at Finserv MARKETS are mentioned below:
- Aadhar Card/Passport/Driving License
- PAN Card
- Bank Statement – Last 3 months
However, if you have a good relationship with the financial institution based on your timely repayments and clear credit records, then the lender may offer you a personal loan based on the detail already available with the lender.
Mentioned below are some tips that can help you avail a personal loan without documents
- You must work towards establishing a good relationship with your financial institution. This will help you gain the trust of the lender over a period of time.
- If you are applying for a personal loan with the same financial institution, where your main operating account is located, it becomes easier for the lender to evaluate your eligibility for a personal loan. Since the lender is fully aware of all the transactions being made on your account, it helps them assess your creditworthiness.
- Make sure that you have a good repayment history. If you have repaid your previous loans on time, you are at a higher chance of availing a personal loan without documents.
- While availing a personal loan, you should make sure that you have a good credit score. This will allow you to avail a personal loan at a comparatively lower interest rate as lenders may consider you a low-risk borrower.
- Make sure that you do not miss any payments associated with the financial institution where you are applying for a personal loan. Any missed payment would reflect your incapability of handling finances and therefore your lender would ask you to provide concrete income proof.
In case you do not have any income proof documents such as salary slips, IT returns, etc., you can avail a personal loan through the following ways:
- While applying for a personal loan, you can submit the latest Form 16 as the income proof.
- You can also submit any other source of income from various business endeavors, housing rent income, bank balance, income of spouse or parents, etc.
- Though personal loans are generally unsecured, you can negotiate with the lender to disburse the loan amount after pledging collateral for the same.
- If you have had a long-standing relationship with your lender, then you may not be required to submit any income proof documents while applying for an instant personal loan.
- You can also assign a guarantor while applying for a personal loan. The guarantor will be required to submit proof of his/her income and guarantee the payment of the personal loan if there is any default.
Now that you are well aware of some important tips that can help you avail a personal loan without documents, let us have at the eligibility criteria for a personal loan:
Eligibility criteria for a personal loan
The eligibility criteria for a personal loan varies from one financial institution to another. However, most loan providers have lenient eligibility criteria for personal loans. Some of the most common parameters are mentioned below:
- You must be an Indian resident
- Minimum 21 years of age
- You must have an Indian bank account
- You must a valid Indian ID proof
FAQs
How long does it take for the disbursal of the loan amount?
Nowadays, with the help of digitization, borrowers can compare various loan offers online and settle for the one that best suits their needs. The application process has become completely hassle-free and the loan amount is disbursed instantly post-approval.
What is the repayment process of personal loans?
Personal loans have easy repayment process. Though the tenure of a personal loan is not too long, it has affordable EMI options. Hence, it has become easier to repay these loans, thereby attracting more and more people to choose it as a feasible option.
What are the factors to consider while availing a personal loan?
Interest rate is one of the major factors that you should keep in mind while availing any kind of a loan. Lower the interest rate, lower is the cost of borrowing in the long run. Nowadays, with the help of leading Non-Banking Financial Companies, it is possible to avail instant loans at the most competitive interest rates. Additionally, you should also make a note of the processing charges, late payment penalties, and other hidden charges before availing a personal loan.
When you avail a personal loan, repaying it should be your first priority. Avoid spending money on any other purchases until you repay the loan. Make sure that you do not miss any EMIs. Making timely repayment will also help you maintain a good credit score. Hence, you should always look forward to managing your expenses wisely in order to make timely payments of your EMIs.
Defaulting on a personal loan will impact your credit score negatively, thereby hampering the chances your personal loan approval in the future. Based upon the loan amount that you borrow, you should calculate your monthly EMI with the help of an online EMI calculator. This will give you a better idea about how quickly you can repay the loan.