Personal loans are a popular form of borrowing because they do not require you to pledge any collateral. Additionally, you can use them for any purpose, be it a child’s education fees, a family wedding or a vacation. Due to their unsecured nature, these loans are easy to apply. The loan limit for a personal loan is determined after factoring all the elements of your financial history, including your income, CIBIL score, and repayment ability. You can get this financial solution from any personal loan company or financial institution, but availing one from an NBFC offers you the benefit of quicker disbursal and more favourable terms.
However, before you apply, here’s everything you should know about a personal loan, from the loan limit to eligibility criteria and documents required.
Familiarize Yourself With Personal Loan Limit
Personal loans can be of immense help for both emergent and non-emergent needs. But before applying, check the loan limit to ascertain just how much you can borrow. Pick a lender with a high loan sanction so that you meet all your needs with a single loan.
Bajaj Finserv Personal Loan is one such solution that offers you up to Rs.25 lakh at a competitive interest rates on personal loan. Additionally, you can also avail a Flexi Personal Loan to borrow money as per your needs and pay interest on what you use. This exclusive feature makes the Bajaj Finserv Personal Loan one of the best in the market.0
Ensure You Meet Personal Loan Eligibility Criteria
Meeting loan eligibility criteria is crucial to getting approval. This is especially true for a personal loan since it is unsecured and lenders pay a lot more attention to how closely you meet the eligibility criteria. As a result, it’s in your best interest to examine this list beforehand or use a personal loan eligibility calculator to determine if you’re a good fit. If you aren’t and you do apply, you can risk rejection which can harm your credit score.
Another approach is techexperthub to pick a lender with easy eligibility terms. For example, when you pick Bajaj Finserv you only have to be a salaried individual and a residing citizen of India. In addition, you must be between the ages of 23 and 55 years and earn the minimum salary as per your city of residence.
Gather Necessary Documents
Having necessary documents in hand is a great way to expedite the loan process. Conversely, not submitting the required paperwork can lead to delays and in some cases, it can even lead to rejection. Therefore, it is important to view the list and arrange the documents in order before you apply. Typically, when applying for a personal loan, the documents you’ll need are:
- KYC documents: This includes your PAN card, Aadhaar card, passport, voter’s ID or driving license
- Income proof: Bank statements of your salary account for the past 3 months
- Passport size photograph
Know Interest Rates on Personal Loans
Knowing personal loan interest rates prior to availing a personal is extremely crucial, as it determines your ability to repay it comfortably. You must pay attention to this as taking a loan that you can’t afford will result in financial distress later on. After inquiring about the lender’s interest rates, work on negotiating a better interest rate on personal loans for the loan to be as cost-effective as can be.
Once you have information on the loan amount, eligibility terms, documents required, and interest rate, find out how to apply for a personal loan. Bajaj Finserv makes this easy for you as you can simply apply online basis minimal eligibility and documentation requirements. Alternatively, to expedite the process further, simply check your pre-approved offer and use it to apply.
Must Read: Pros And Cons Of Instant Personal Loan