Personal loan is unsecured loan and helps the borrowers meet their current financial needs. The borrower does not usually need to pledge any security or collateral while availing a personal loan and the Bank provides the flexibility to use the funds as per borrower’s need. Personal loan can serve as a quick financial solution for managing travel costs and expenses like medical emergency, home renovation, debt consolidation and others.
Generally, individual(s) with steady source of income including persons engaged in agriculture and allied activities, who are 18 years of age are eligible for loan. Salaried people get the personal loan sanctioned quite easily on the basis of the salary slips and the income tax returns.
CIBIL score is one of the important factors for granting personal loan.
It is all utility purpose loan and the loan amount can be used for any purpose. The banks are not interested to know what the borrower is going to do with the loan amount. One can use the fund of travel, shopping, for medical expense, renovation of house etc.
Maximum Amount :
The maximum loan eligibility for amount is usually calculated on the basis of the repaying capacity of the borrower is arrived at by finding out the ratio of EMI/NMI.
EMI= Equated Monthly Instalment
NMI= Net Monthly Income
Personal loans are security free loans and Banks do not ask for any collateral.
Sometimes Banks can ask for additional Guarantors looking at the high value ticket loans.
Frequently Asked Questions
- Income certificate/ salary slip
- IT returns for last three years
- Bank statement of the account where salary is credited
- ID proof
- Address Proof