It is quite a common question, “How do I apply for personal loan in India today?”. It is very common in today’s modern age.
The answer to this question is simple:- there are many ways to apply for loan online; you can apply online for any loan from any bank or financial company. But if you are looking for best way to apply online for personal loans in India, then this article will be helpful guide for you: How to Apply for Personal Loan in India 2022
What is a personal loan?
A loan is a financial instrument that allows you to borrow money from a lender, who in turn will lend it to you. Loans can be used for personal or business use. Personal loans are not just for personal needs but are also often used as an investment tool.
Generally, the borrower usually pays a monthly fee, which is called interest rate along with principal repayment. The borrower’s repayments are equal to the interest rate plus the principal (the amount he paid) multiplied by twelve months. For example: If the interest rate is 12% and the principal amount is Rs 10 lakh, then the repayments will be Rs 11 lakh in one year and Rs 11 lakh in the next year.
In India, there are different types of personal loans like home loan, car loan etc. but here we discuss Personal Loan as per Indian rules and regulations on lending/loan rates and eligibility criteria available for borrowing loans from banks/financial institutions for personal purpose in India .
So what are you waiting for? Pick up your phone call from your bank today, book your flight tickets to anywhere you want and make all these exciting plans; because soon enough, you’ll need these funds to do it . . .
But before you start celebrating too much let’s keep ourselves abreast of some guidelines here:
- The type of loan structures prescribed by banks can vary depending on various factors (e.g., age) of borrowers and loan amounts they need to borrow.
- For instance, those borrowers who require over Rs 10 lakh can apply for home loans under ‘Buy-Sell-Lease Scheme’ provided that they need more than 5 years tenure from last date of purchase.
- Those who require more than 20 years tenure from last date of purchase can apply for buy-and-sell scheme if their debtors have not been housewives or married women.
- Those who require over 50 years tenure from last date of purchase can apply for buy-and-sell schemes if their debtors have old age pensioners or those which are unable to live alone (i.e., retired couples).
- It is also important to note that if your borrower falls between these two groups then he would not qualify at all under ‘Buy-Sell-Lease Scheme’ and hence you will have no option but to opt out using this option instead.
Who is eligible for personal loan?
The history of personal loans in India is not very long. The first personal loans were issued by the banks in 1950's. At that time, one had to have a bank account to obtain a loan from the bank. It was only after decades, when the Indian economy began to grow, that more and more people started borrowing money from their friends and family members. Today, the number of people who are borrowing money from their friends and family cannot be counted, with many people taking out loans from multiple sources to tide over financial emergencies.
Whether you are a student or an entrepreneur looking for cash as a last resort, everyone can benefit by taking out personal loan (also called personal finance or personal loans) all over India today.
The loan applications are divided into two categories:
a) Personal Loan (PL) To be eligible for a Personal Loan (PL), you need to satisfy some conditions such as:
- You should be an individual who is not yet married but will become so in future;
- You should be an unmarried person;
- You should be employed or self-employed;
- You should reside outside home state of Punjab and Haryana; o
- You should have no bad credit history or any closed account with any bank at any time.
b) Non-Personal Loan (NPL) To be eligible for Non-Personal Loan (NPL), you must satisfy some conditions including:
- You should be an individual who is not yet married but will become so in future
- You should have no bad credit history or any closed account with any bank at any time
- Your property worth less than 2 lakhs ($300,000)
- Your salary/wage/end-of-year bonus.
If you meet the eligibility criteria above, you can apply for a Personal Loan by submitting documents such as PAN card copy along with self attested copies of passport copy etc. If your income is less than 2 lakhs ($300,000), your income tax form 6/12 to show proof of employment status also needs to be submitted along with self attested copies of passport copy etc. If your salary/wage/end-of-year bonus is less than 1 lakhs ($10,000), then you need to submit monthly salary certificate / end year bonus certificate etc. If your property worth less than 1 lakhs ($10,000), then it needs to show its val
When to apply for personal loan?
There are several loan applications in India. One of the most popular ones is personal loan. There are many benefits to applying for loans online or in person, but some of them can be a little tricky.
How to apply for personal loan in India?
Personal loans are a very popular form of financial aid for most Indians. There are a lot of lenders offering personal loans to the people of India at very low interest rates. However, it is imperative that you do some research before you apply for any loan. The best way to do this is by doing a lot of comparison shopping and comparing different lenders in your local area.
If you're ever thinking about getting a loan, remember that you need to be careful what type of loan you take out. It's best to steer clear of personal credit cards, auto loans, and home equity lines of credit. These elevated interest rates can add up quickly if you are paying off debt at the same time as taking out a new loan.
Conclusion
I hope you found this post helpful. If you have any questions or remarks, please leave them below. Thank you for reading!
