A personal loan, also known as a consumer loan, is an unsecured loan that can be availed based on credit history and repayment category. You can immediately fulfill your cash needs with a personal loan which is multi-purpose in nature. Whether you want to fund an upcoming wedding or holiday; or need funds to expand your house, personal loans are an apt and most reliable instrument. No security or guarantor is required, as these loans are unsecured.
- Types of personal loans –
A personal loan can be availed for both planned and unplanned expenses. Once the loan amount is disbursed, one can use it in any way they want. Be it a wedding, education, or vacation, you can use the loan amount per your requirement.
Benefits of personal loan –
For a personal loan, minimum documentation is required
- Loan is approved within 15 minutes.
- You can choose the repayment tenure according to your capacity.
- These loans have no end-use restrictions.
- Loan is disbursed quickly.
Who is eligible for a personal loan?
- Applicants should be Indian.
- He must draw a salary of at least 25 000 every month.
- He should have a total work experience of at least 12 months.
- He should have responsible credit behavior, and his credit score must be 725 or above.
- Age criteria is between 25-58 years.
Factors improving personal loan eligibility –
- 2.More income means more loan eligibility
- Documents required for the personal loan-
- 1. Duly filled online form of application.
- 2. Passport-size photograph.
- 3. Identity proof like an Aadhaar card, PAN card, driving license, or passport.
- 4. Last month’s payslip.
- Advantages of adding co-borrowers – If the income is insufficient, the co-borrower’s income can be added to fill the gap. When the income of both the applicants is added, DTI( Debt to income) ratio gets lowered. DTI is the ratio of the total EMI of the month to the total monthly income. Even if the applicant’s credit score is low, he is eligible for the loan if the co- borrower’s credit score is high. An applicant gets better interest rates if a co-applicant is added. Co-borrowers’ good credit history can help negotiate with the lenders to negotiate the interest rates for the loan. However, defaulting on repayment can affect the credit score of the co-borrower. The co-borrower has to repay the loan if the first applicant fails to repay the loan. Only a few financial institutes allow joint lending, and the process takes time compared to a regular personal loan.
Conclusion-: If you are willing to apply for a personal loan, add a reliable and trustworthy co-applicant to make the procedure easier. Co- borrower with a high credit score and stable income helps apply for more significant amounts with lower interest rates. If you are looking to buy property in a good location of Pune, check out 1 BHK flats for sale in Tathawade. 1 BHK flats are available in iOS in Tathawade. Explore the property and fulfill the dream of buying a home available at an affordable price range.