The personal loan segment is escalating exponentially from Rs. 75,088 crore to Rs. 147,236 crore in value from FY19 to FY22. However, the growth was much more significant in terms of volumes, rising from Rs.3.99 million accounts to Rs.15.8 million from FY19 to FY22. The robust demand for a personal loan is because of the instant availability of funds, helping individuals eliminate monetary stress with utmost convenience.Borrowers can obtain a personal loan from reputed financial institutions, including banks and NBFCs. As this credit option is not secured against any collateral, borrowers can enjoy instant access to funds. However, borrowers must know the particularities attached to the borrowing to make the most of this unsecured loan option.
Know the eligibility criteria for a personal loan
Eligibility criteria are set to evaluate a borrower’s profile and repayment capacity. Before applying for a personal loan, borrowers need to adhere to the personal loan eligibility criteria:
- Applicants must be residing Indians.
- Individuals must fall in the age bracket of 21 years to 67 years.
- Borrowers must be employed in a reputed MNC or private/ public firm.
- In addition, individuals should have a CIBIL score of 750 or above.
Document required for availing of a personal loan
Besides meeting the eligibility parameters, borrowers should also keep the following documents in order while applying for this unsecured loan option:
- KYC papers
- Employment proof
- Address proof
- Salary slips
- Bank account statements
Know how to apply for a personal loan
With the digital revolution in financial sectors, it has become easy for borrowers to apply for personal loans online from the comfort of their homes. Here are the steps that will help borrowers apply for this credit option:
Step 1: Go to the official website and select personal loan from the product page.
Step 2: Now, click on ‘Apply Online’ and fill out the application form with personal, employment and income details.
Step 3: Select the loan principal and repayment tenor.
Step 4: Attach documents and submit the application form.
Upon successful verification, borrowers will receive the sanctioned loan amount in their mandated accounts.
To receive quick approval for the loan application, borrowers should know the mistakes to avoid while applying for a personal loan.
Besides knowing the personal loan meaning and the application method, borrowers should also look at the numerous benefits this credit option extends to borrowers.
Benefits of availing of a personal loan
A personal loan is a go-to financing choice that bestows borrowers with innumerable benefits:
High loan principal
Bajaj Finserv extends a substantial loan amount of up to Rs. 35 lakh, helping borrowers manage their financial emergencies. Furthermore, the sanctioned amount can be used for numerous purposes like funding a child’s education, medical bills, managing wedding expenses, renovating a property, expanding business, etc.
Competitive interest rate
Borrowers are charged a lower interest rate on the loan amount, making the EMIs affordable, which further helps borrowers repay the loan amount comfortably.
In this context, borrowers must know how to avail better interest rates on a personal loan, as it will reduce the cost of borrowing.
Flexible loan tenor
Bajaj Finserv extends a flexible repayment tenor of up to 60 months. Therefore, borrowers can conveniently choose a suitable loan tenor per their repayment convenience and requirement, helping them repay the loan on time.
No-end use restrictions
One of the notable benefits of availing of this unsecured loan is its no end-use restriction. Borrowers can use the amount for meeting any expenses and are not liable to the lender regarding the usage of the funds.
Instant approval
As a personal loan is an unsecured credit option, borrowers do not have to undergo a tedious documentation process, helping them get instant approval for the loan quantum.
Moreover, if borrowers have a healthy credit score, it will give them an upper hand in quick access to funds at a competitive interest rate. In this context, borrowers must know how the CIBIL score is important for personal lending.
Minimal documentation
A personal loan comes with easy-to-meet eligibility criteria and a simple documentation process. Borrowers can avail of a high loan quantum by submitting basic documents like KYC papers, bank account statements, etc. On the other hand, self-employed individuals will have to submit business proof paperwork, income tax returns, etc.
Flexi loan facility
Borrowers also enjoy the Flexi loan facility advantages, allowing them to draw from their loan limits only the amount they wish to borrow – and part-prepay their loan as they wish. Furthermore, borrowers can opt for interest-only EMIs and reduce the monthly instalments for the initial part of their tenor.
Moreover, borrowers reap the benefits of the exclusive pre-approved offers extended by leading financial institutions on a wide range of financial products like personal loans, business loans, credit cards, etc. These offers expedite the application process and save turnaround time and effort. Intending individuals can check the pre-approved offers by submitting their names and contact details.
To summarise, a personal loan is a reliable credit option that helps borrowers tide over financial urgencies. However, to make this unsecured loan option worthwhile, borrowers should be well versed in the intricacies of this borrowing.
