Personal Loans India
Personal loans in India are unsecured loans; therefore
, it has large demand among the consumers. Moreover, the person can use this loan for any of their requirements and needs. Even the customer does not have to provide any information to the bank for availing the personal loan. Furthermore, the process is quick and convenient, as less number of documents required. Even person can avail this loan from various banks as well as financial institutions. The person can avail this loan within 48 hours, if the person meets the eligibility criteria for availing the personal finance. All profile people can avail the personal loan; i.e. self employed person, salaried person or professional.However, the person should quite careful while availing personal finance, as it is costly loan then from other loan. This is so; the bank levy interest rate around 14 to 25% and provide loan for the shorter tenure, i.e. 1 to 5 years. The bank provides this loan from Rs.50000 up to Rs.15lacs. The loan amount, Interest rate and tenure wholly depend on the customer profile. This is so; as personal loan is an unsecured loan. Thus, bank checks the customer profile through the customer documents that customer submits with the loan application. The various documents are:
1.Identity Proof (passport copy, driving license)
2.Residential Proof (Passport copy, utility bills)
3.Age proof (passport copy, birth certificate)
4.2 passport size photographs
5.Bank statement of last 3-6 months
6.Income proof (salary slips, Form 16)
7.Employment details (continuity proof)
The bank verifies these documents, and when they find that customer meet all eligibility criteria of availing the personal loan, then banks sanction the loan. The person can avail personal loan in two ways; either as secured or unsecured loan. Secured loan means that person has to provide security or collateral for availing personal loan. The bank provides this loan at low interest that too for longer tenure and even person can avail higher amount. Moreover, the person with poor credit score can also avail this personal loan. This is so; the bank can take hold of customers secured property, Incase customer defaults in loan repayment.
Unsecured personal loan means that person can take personal loan without providing the security or collateral. The bank provides this loan to the person who has excellent credit worthiness and strong profile. This is so; the lending risk is high, as the bank has no way of recovering the amount, if customer defaults in loan repayment.
by: Dialabank