All you need to know about Personal Loan

Answer to all those questions related to personal loans, Such as:
What is A Personal Loan
Sources Of Loans
Personal Loan Process
Applying For A Personal Loan
Documents Required To Avail Loan
Collateral
Loan Eligibility
What You Need To Know Before Applying For A Personal Loan

Transcript

2. What is A Personal Loan •A personal loan is a type of unsecured loan which helps you to meet your current financial needs. •You don't usually need to pledge any security or collateral while availing a personal loan and your lender provides you with the flexibility to use the funds as per your need.
3. Sources Of Loans • Commercial Banks • Savings Institutions • Finance Companies • Credit Unions • Friends • Family members
4. Personal Loan Process
5. Applying For A Personal Loan • Step 1: Identify the Purpose of taking Personal Loan • Step 2: Learn about the Eligibility Criteria • Step 3: Documents Required • Step 4: Fill the Loan Application Form • Step 5: Final Step towards your loan journey There are many banks nowadays which provide low interest personal loans .
6. Documents Required To Avail Loan Identity proof Aadhar Card/ Voter ID/ PAN Card/ Driving license/ Passport (any one) Address proof Aadhar card/ Voter ID/ Registered Rent Agreement/ Utility Bills/ Passport (any one) Address proof Aadhar card/ Voter ID/ Registered Rent Agreement/ Utility Bills/ Passport (any one) Business Proof (For Self-Employed Individuals) Qualification Certificate/Certificate of Practice (COP) Shop Act License/ MOA & AOA/ Sales Tax/ Vat registration/ Partnership Deed
7. Income documents (For Salaried Employee) Last 3 months salary slips Bank account statement of last 6 months reflecting salary credit Self-Employed Professionals/ Business Owners Last 2 years of Income Tax Return, P&L and Balance Sheet Last 6 months Bank Statement Income documents (For Self-Employed Professionals/ Business Owners) Last 2 years of Income Tax Return, P&L and Balance Sheet Last 6 months Bank Statement Other documents Loan application form Passport size photograph Other documents Loan application form Passport size photograph
8. Collateral Collateral is something you own that the bank can take if you fail to pay off your debt or loan. This can be any item of value that is accepted as an alternate form of repayment in case of default. If loan payments are not made, assets can be seized and sold by banks. This ensures that a lender receives full or partial compensation for any outstanding balance on a defaulted debt. Loans with pledged collateral are known as "secured loans," and are often required for most consumer loans.
9. Loan Eligibility If you are a salaried individual You should be in the age group of 23-60 years You should be a long-term employee of the current organization If you are a self-employed individual You should be in the age group of 28-65 years You should have business continuity of at least 2 years
10. What You Need To Know Before Applying For A Personal Loan Points to remember before applying for a quick personal loans 1. Maintain a good credit history 2. Compare the interest rates in the market 3. Assess all costs 4. Consider your needs to arrive at the right loan amount 5. Evaluate your ability to repay the loan 6. Avoid falling for gimmicky offers and plans