Money Isn’t Everything But Everything Needs Money!
Unsecured Personal loan is a means to provide money for everything you need to reach your personal goals.
What is a personal loan?
A personal loan is given to an individual person and not to a company or a business enterprise. A personal loan is basically a loan taken for a personal need for e.g. For renovating your home, for medical contingencies, for marriage, a family vacation, to finance your child’s higher education or any other type of personal requirements. In short it’s a loan to cater to all your personal needs.
Such a loan is an unsecured loan which is given without any guarantee or security. It’s a collateral free instant loan.
Who provides unsecured Personal Loans?
Such loans are provided by banks and NBFCs (Non Banking Finance Companies). They provide these loans at a certain interest and charges paid by you.
What is the period for which personal loan is given and how do you pay them back?
Personal loans are generally given for a period of 2 to 3 years and paid back in equated monthly instalments (EMIs).
Who can apply for a Personal loan?
Any individual whether salaried or self employed can avail a personal loan. The lenders will take into account the income, age,credit score etc. when deciding the eligibility for the personal loan.
How much can an individual borrow?
Most finance companies and banks sanction a loan amount such that the total EMI payable does not exceed 40-50% of the monthly income of the applicant.
What are the documents needed to apply for a personal loan?
For salaried people the documents to be given are:
- Last 3 months Salary Slip
- Last 6 months Bank Statement
- KYC – self certified copies of Pan card , Aadhar card & Electricity Bill
For Self Employed Individuals you need to provide:
- Audited Financial Statement for last 2 years.
- Last two years Income Tax returns with Computation of Income, Capital Account & Balance Sheet
- Bank statement for last 12 months period
- Pan card copy,Aadhar copy
- Gumasta License copy
- Residence Address proof – Electric bill
- Offices Address proof – Electric bill
- All other Loan Sanction letters –if any.
Along with this each bank and finance company has their respective application form that needs to be given at the time of application.
How much time does it take to get your loan approved?
It depends on how quick you are in submitting the required papers and also how fast the finance company/ bank is in processing the papers.
Generally though once you submit your documents it takes about 5/6 days to know if you can get the loan or not and how much amount you can get. After a positive response it will take about 4 to 5 days to complete the loan disbursement process.
From whom should you take your personal loan?
There are many Banks and NBFCs lending in the unsecured personal loan segment. You can apply to any of them for your personal loan.
The market is full of choices for a personal loan borrower so much so that it becomes confusing sometimes from whom to borrow.
So how do you decide?
Some of the deciding factors would be:
- Rate of Interest charged on the loan
- Period of loan sanctioned
- Pre-payment options( whether there are any prepayment charges)
- Processing fees(these differ from lender to lender)
- What would be the final disbursed loan amount as against your sanctioned amount ?
- Instalment amount (EMI)
- Instalment payment dates
Since it is not practically possible for an individual to approach all banks and finance companies and compare their rates, it would be advisable to approach a loan agency which is affiliated with many banks and finance companies so that it can offer you more choices.
Visit Loancart.net which is affiliated with more than 33 Banks and Finance companies and has a wide bouquet in the personal loan category. Loancart would be able to arrange instant personal loans at lowest rate of interest without charging their fees to you!