What are the benefits of availing of a Personal Loan?

Unlike other types of loans like Home Loan or Gold Loan, where you must provide several documents, Personal Loans require minimum documents and the approval process is quick. With various financial institutions offering Personal Loan online services, the loan amount is disbursement within a few hours provided the lender is convinced of your repayment capacity. Another significant feature of Personal Loan is that the lenders offer you the flexibility to choose your loan tenure. Usually, Personal Loan tenure ranges from one to five years. So, you can select the loan term based on your repayment capacity. You should opt for a shorter loan, so that you can save on the interest payment and repay the amount faster.

Is it possible to apply for a joint Personal Loan?

Yes, you can apply for a Personal Loan jointly with your spouse, or any other family members like parents or siblings. One of the benefits of applying for a Personal Loan with a co-borrower is that the lenders will consider both the applicants’ income while determining the loan amount. This means that you can apply for a higher loan. However, you must know that if the co-borrower has a poor credit history, there is a risk that the lender might reject your loan application.

What are the documents required for Personal Loan application?

Although the documentation varies from lender to lender, some of the essential documents you must provide along with your application form include:

• Proof of income (salary slip, bank account statement, ITR forms)
• Proof of residence and identity proof
• Certified copy of your degrees and licence (this is applicable only for self-employed applicants).