Personal Loan

A personal loan, also called a signature loan, is an unsecured loan granted for personal use. This is usually used for meeting expenses like home improvement, medical emergencies or major domestic purchases. You can get a personal loan in the range of Rs.50,000 to Rs.20,00,000. The repayment period usually varies from 1 to 5years.

Since so many lenders in the market are offering personal loans these days, it is always good to compare and survey the market. Also, with various offers and schemes available, it is always a wise decision to shop around the market and compare to choose the best of what is being offered.

Types

There are a great many types of personal loan finance products for you to choose from. However, broadly speaking they fall into one of two categories: secured or unsecured personal loans. Generally speaking you would only seek to take out a secured personal loan to borrow money for something that required a very large amount of money and was to be repaid over a long period of time. Whereas, an unsecured personal loan would be used for relatively smaller amounts of money, that are typically repaid in a few years if not months.

1. Secured Personal Loans

2. Unsecured Personal Loans

Eligibility Criteria

Personal loans are provided by various banks and non banking financial companies (NBFCs). There are various factors which effect the your personal loan eligibility. Below mentioned are some of the few factors which the bank or the NBFC will consider while they decide on your personal loan eligibility.

Some of the general criteria to be met to get a personal loan are listed below:

The applicant should have an income of not less than Rs,15,000 per month.
For salaried applicants, the age should be not less than 21years and not more than 60 years.
For the self-employed applicants, the age should not be less than 23years and not more than 65 years.
Some banks also require that the applicant has been residing in the same place for at least a year.
To get the loan approved, the applicant has to show proof of income, identity proof, address proof and bank statements.

Benefits