Personal Loan: A prologue for beginners

by

Gaurav Singh Khurana

A personal loan is a loan that is specially structured to meet all sorts of personal and financial needs. It is a loan that provides the financial assistance to the people who are in the abrupt need of funds. It is a loan that can be borrowed without taking any help of collateral or any guarantor. Thus, it is a risk free loan for the people as they do not have to use any of their personal assets to acquire the loan. There is no restriction on the use of personal debt. Thus, a person has the full liberty to use the loan for whatever purpose he / she intend. These purposes can be wedding and travelling expenses, making house renovations, making payments of electricity and credit card bills.

Now when a person found himself in a tight financial position can opt for Personal Finance easily. One can get financial help by applying in various banks like Axis Bank, Citibank, Punjab National Bank and many more. These banks are in the cut throat competition to provide the personal debt at best in class interest rates. People can choose

Axis Bank Personal Loan

to cater all of their personal needs in a short interval of time. Other Unsecured Debt schemes are also available in the market. A person can choose the loan deal that suits his / her requirement and budget.

Before applying for unsecured debt people must know some basics of applying the loan. Banks apply the loan to the salaried and self employed people.

Eligibility Criteria of Personal Loan

For this section of business banks have proposed different eligibility criteria which vary from bank to bank. The common criteria that all of the banks rely upon are:

For salaried people

:

Salaried individual who wants to avail personal debt must be earning an income of Rs 15,000 per months and should have a permanent income source. A person should have the CIBIL score above 720, and he will be eligible to get the personal debt at affordable interest rates.

For self employed people

:

Self employed people must have gross income of Rs 1,20,000 per annum and must be filling an ITR of 1 lakh to 2.5 lakh. Self employed people must have either their business owned or office owned.

Documentation

Documents required:

Identity Proof includes Adhar Card, Driving License, Ration Card and PAN card.

Residence Proof includes Ration Card, Electricity and telephone bills.

Last 6 month bank statements.

Form 16 for salaried individuals.

ITR proofs for self employed people.

By satisfying all of the eligibility criteria and submitting all of the documents, a person can easily acquire he loan amount easily into his account.

I am the Founder Director of

DialaBank.com

, India s First Financial Helpline and am an expert on Insurance, Wealth Management, Banking Retail Assets and Tax Planning. I am an MBA Finance from IMT (Ghaziabad) and have spent 13 years working with Citibank and ING Investment Management. Most of my experience has been on Wealth Management, Investment Product Planning, Debt and Equity Markets and Retail Assets (including all types of loans)

Article Source:

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