Personal Loans are well sought-after when people want to satisfy their wanderlust, plan a home renovation, or even expand their business. Since it is an Unsecured Loan, it does away with the need for collateral. It also requires minimal documentation and has no end-use restrictions.
Today, you can go completely digital and apply for Personal Loan online using the Banking app. The process only takes a short time, and once approved, the bank instantly credits the Loan amount to your Savings Account. However, before you go ahead and conveniently apply for Personal Loan, you need to ask some questions.
Are you eligible for the Loan?
Whether you can apply for a Personal Loan depends on your income, age, years of professional experience, etc. Eligibility requirements may also vary depending on whether you are a salaried individual or self-employed. Hence, checking the criteria before applying for the Loan is essential to improve your chances of securing it.
For example, if you want an Instant Loan for the self-employed, you can input details like date of birth, income, monthly Loan obligations, etc., on an online calculator. The calculator promptly analyses your details and shows the amount you can get.
What is the ideal Loan tenure?
An essential benefit of a Personal Loan is that banks usually allow you to choose from flexible tenures that range between one and five years. This benefit enables you to pick the Loan repayment schedule in a way that the regular equated monthly instalments do not affect your lifestyle and financial commitments.
You can also use the Personal Loan EMI calculator to know the EMIs you can pay for an Personal Loan for self-employed.
What are the charges?
Banks generally charge a processing fee and taxes at the time of Loan approval. This processing fee usually depends on the borrowed sum and its interest rate. Besides this, you should also pay interest on the principal sum you borrow. Banks may also charge for part pre-payment of Loans, late payments, etc.
What are the documents required?
The process is typically paperless when you apply for Personal Loan online using Mobile or Internet Banking. You only need to complete a form to state your requirements. However, if your Loan amount exceeds the approved limit, you may need to provide certain documents, for example, details of other Bank Accounts, etc.
Can you apply for this Loan when you already have a Home Loan?
You can apply for a Personal Loan irrespective of your other financial obligations. However, you should understand that the Loan amount you are eligible for will be lower. This smaller figure is to accommodate your additional Loan repayments.
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