All You Need To Know About Personal Loans

All You Need To Know About Personal Loans
                                                                                                         Author : Face insider Staff

A personal loan is one of the most sought-after loan types as it allows an individual to fulfill any personal financial need without any collateral. The loan amount can be used for covering medical expenses, wedding celebrations, vacation expenditure or any other personal expense. Other than that, a personal loan can be used to consolidate debt at comparatively less interest rate than credit cards generally have.
Personal loans are preferred by many for these reasons:
·         It is unsecured, hence, no collateral is needed
·         A guarantor is not required
·         Personal loan documentation is hassle free compared to other types of loans
·         It is approved quickly anywhere between a day to a week, depending on the institution policies
·         Borrowers can use the loan amount as they wish without being audited
The aforementioned reasons are notable, however financial institutions offering personal loans are dead set on the credit history of the borrower, their annual income and income tax returns for last 3 years. Some lending institutes allow you to check your personal loan eligibility online and even apply on their websites. If the eligibility criteria is met, your application will go through another assessment depending on the amount you want to borrow, the loan tenure and policies of lending institute.
Personal loan procedure is fairly easy and online application makes it even more convenient. Those who apply online for personal loan can scan their documents and upload them directly. Personal loan documentation requires the following:
·         Duly filled personal loan application form
·         ID proof and address proof
·         Photograph of applicant
·         Bank statements
·         Income proof in the form of previous salary slips, Form 16 or Income Tax Returns
·         Proof of employment
The amount granted for personal loan can range anywhere between Rs. 10,000 and 20 Lacs, as per the requirements of the borrower. Depending on the loan amount and lending institute, the loan repayment tenure varies between one to five years, allowing the borrower sufficient time to manage their loan repayment.