Imagine facing a sudden cash crunch situation when you least expect it! It could be a medical emergency. Maybe the last date for paying your child’s education fees comes up and alternate arrangements have not worked so well. You may turn to relatives and friends as a last resort, however, they refuse as they have their own obligations. Where do you go? Who do you ask? It can be an unpleasant experience for those who go through it. When you are stressed out looking for a convenient financing option that is quick to respond, a personal loan can act as a panacea.
What is a Personal Loan?
A personal loan is an unsecured loan that can be taken for a tenure ranging from 1-5 years. The amount could range from Rs 50,000 – Rs 10,00,000 at an interest rate of around 18% per annum on a reducing basis.
There is no need to provide collateral, either. A personal loan can be availed of without the need to cite a reason or purpose. So, it is multipurpose in nature which makes it more attractive. Most importantly, you can get a personal loan disbursal within 24-36 working hours. Now, that’s almost instant, isn’t it?
Can anyone get a personal loan?
Well, almost anyone can get a personal loan provided they meet the eligibility criteria.
You are eligible for a personal loan provided
- You are over 21
- You are a citizen or resident of India
- You have a monthly income of over Rs 30,000
What documents are needed to avail a personal loan?
Unlike the documentation for secured loans, the process for a personal loan is very simple. At LoanTap, this is what you need to do to apply for a personal loan.
Step 1: Fill an online application form
Step 2: Upload the following documents.
- PAN Card
- Address Proof
- 3 months salary slips
- 6 months salary account statement
- e-Nach Mandate
Step 3: Post verification wait for Personal loan Disbursal.
How can I get instant approval?
Personal loans, being unsecured, there is no need for collateral. In the absence of collateral, a steady job with a monthly income greater than Rs 30,000 is very important.
The lender studies the documents submitted by you and obtains your CIBIL score. Hey, wait, what is a CIBIL score and how does it influence your application? CIBIL score is a 3 digit numerical summary of your credit history derived by the CIBIL credit bureau.
You need to have at least 6 months of credit history for a CIBIL score to be generated. Also, it’s better that you should have a steady income stream for 6 months before you apply for a personal loan.
CIBIL score is calculated in a range between 300 to 900. A score over 750 is considered good for a personal loan.
This is one of the main parameters that is considered by lenders when they evaluate your personal loan application.
You should not have multiple loans running concurrently. Lenders are sceptical about multiple ongoing applications as it increases the risk of non repayment.
You should avoid applying with multiple lenders at the same time. The lender may lose interest as he may assume that you will choose another.
If you meet the eligibility criteria it is a simple matter to get your loan approved instantly.
At LoanTap, applying for a personal loan is an extremely user-friendly experience. Once the documents are verified and the KYC is complete, your personal loan is disbursed within 24-36 working hours.
After 6 months, you can choose to prepay your loan in full without any prepayment penalty. There are several flexible repayment options available like interest only EMI, step up, term, Overdraft etc. You can pick the repayment plan that best suits your monthly cash flow pattern.
Getting a personal loan instantly is a very convenient financing option for those looking for a short term tenure to meet a sudden expense.
You can also choose a personal loan to consolidate your existing higher interest debts and pay them off. This will help you lower the existing payouts . It will also eliminate the burden of managing multiple EMIs and the risk of default. It will help to streamline your cash flow and improve your credit history.
Related Article – Personal loan in 3 Step!