Personal loans are an unsecured form of credit that is popular to meet immediate requirements. It is multi-purpose in nature and therefore can be used for various purposes including wedding, home renovation, travel purposes and more. Moreover, there is no restriction for the amount borrowed and can be used for any purpose they want. In fact, a personal loan can help you build your credit faster when compared with other forms of credit. This is because of the risk it carries due to being unsecured.
All in all, a personal loan can offset any temporary financial crisis.
Benefits and Features of Personal Loan
No collateral required
One of the benefits associated with an online personal loan is that it is unsecured in nature. This means you don’t need to pledge any collateral for your loan. Although this can be a reason for your interest rate, you can get a low-interest personal loan easily if you meet the eligibility requirements.
In this age of digitisation, the process of verification and documentation has now become short. This is applicable for an instant personal loan as they are fast in disbursal and require minimum documents for approval.
You can get personal loans that are quick and easy in approval. This is why it is the best bet in times of financial emergency. Moreover, the process has become digital; thus reducing time in the verification process.
Multipurpose in nature
A personal loan can be used for anything except for investment and illegal activities. Apart from that, it is multipurpose in nature and can be used for anything. Other forms of credit when taken are for a specific purpose and can be used only for the same. For example, a home loan is used for purchasing a house whereas a car loan is taken to buy a car. However, a personal loan can be taken to offset any immediate requirements.
Documents for a personal loan
- Proof of Identity – Passport, driving license, Voter Id, Pan Card (Only One)
- Proof of Residence – Lease and License Agreement, Utility Bills (Not more than 3 months old), Passport (Only One)
- Last three months Bank Statement (Where salary credited)
- Salary slips for last 3 months
- 2 Passport size photographs
For Self Employed
- KYC documents – proof of Identity, Address Proof, DOB Proof
- Proof of Residence – Lease or License Agreement, Utility bill (Not more than 3 months old), Passport (anyone)
- Income Proof (Audited financials for last 2 years)
- Last 6 months bank statements
- Office address proof
- Proof of residence or office ownership
- Proof of continuity of Business