A personal loan is an unsecured loan taken by individuals to meet personal financial needs. It is taken from banking or non-banking financial companies. It does not require security or collateral. The lender provides the loan based on borrower’s ability to pay. Financial crisis can strike you anytime in such situation personal loan may help you out, irrespective of your income level.
Personal loans help in solving monetary issues. With correct documents and fulfilling the eligibility criteria, anyone can apply for it. This process for applying personal loan is strenuous and tedious. The verification of documents required for a personal loan takes too much time while Upwards has a fast and hassle-free process. To know it better you can check https://upwards.in/loan-documents and avail the loans hassle-free.
When to apply for a personal loan?
It can be applied for any personal needs. It can be used in emergency situations, for travel, marriage related expenses, home renovation, buying expensive gadgets, electronic appliances for home or office, meeting unexpected medical emergencies, foreign education, investing in a business or paying the debts.
A personal loan does not require any asset so if you default a loan repayment your asset won’t be confiscated from you. It has a high-interest rate in comparison to other loans, which are taken against any asset.
To apply for a personal loan you should be eligible in these factors:
Profession: To avail a personal loan, the person should be working individual either salaried or self-employed.
Age: Any individual falls under 21-60 age group can apply for a personal loan from a bank or a non-banking financial company.
Income: Individual applying for a personal loan should have a continuous source of income. Minimum income for a salaried individual is Rs.15,000 salary per month and for self-employed individuals minimum of Rs.10 Lakh gross annual turnover.
Credit history: individual applying for a personal loan should have a good credit history of past one month to one year.
Documents required for a personal loan
Income Proof: Six months bank passbook or at least three months bank statement is required. For salaried individual recent salary slip or current salary, the certificate is required.
Address proof: Recent address proof is another important document required for a personal loan. Ration card/passport/ telephone /rental agreement/electricity bill anything can be produced as an address proof.
Identity Proof: Identification is a must for applying for a personal loan. Documents such as Aadhar card, Valid Passport, Valid Voter ID card, or a driving License can be produced as an identity proof.
Documents required for self-employed individuals are:
PAN Card: For company/ Firm/ Individual proof, the PAN card is required.
Income: Last six months of bank statements and latest ITR along with computation of income, recent Balance sheet along with Profit and loss a/c (CA Certified/Audited) for the last two years are also required as documents required for a personal loan.
Other compulsory documents: Sole Proprietorship Declaration or Certified Copy of Partnership Deed, Certified original copy of Memorandum and Articles of Association( Certified by Director) and Board resolution(Original) are required as other compulsory documents.