What you need to learn about Personal Loans
The financial situation of a large portion of the population was in danger. Many people required funds to pay for emergencies in the medical field as well as education, wedding plans and more. This is when personal loans were an efficient solution to the current financial crisis. Long-term personal loans can be accessed in just a few hours after submitting an application without collateral. Therefore, the need for personal loans grew in recent years , especially during the outbreak of.
In this post, let’s first understand the basics of the meaning of a personal loan.
What exactly is a personal Loan?
Personal loans are loans that are not secured which can be used to satisfy any urgent financial need, including wedding plans, medical emergencies or vacation plans. When you apply for the loan, you should not offer any collateral or security in contrast to other kinds of loans, such as gold loans. Personal loans are easier to obtain because they require less documentation and the speedy method of confirmation. The maximum and minimum amount for personal loans can range between Rs.10,000 to the amount of Rs. 15 lakhs.Buddy Loan is among the top third-party aggregators which offer online loans in a flash in various categories like wedding loans, personal loans medical loans and more. to satisfy the different demands and needs of individuals.
The tenure of short-term and permanent personal loan
Short-term:
A short-term loan comes with the option of a repayment period of up to one year.
Long-term The personal loan that is long-term:has the repayment period ranging of 1 to five years. Some lenders also offer loans with a longer term, based on the bank. If the term is more than seven years, it is not within the scope of personal loans. You must offer collateral to qualify for the loan.
The benefits of taking out personal loans for the longer-term purposes:
- The EMI amount that you pay for a longer-term loan is significantly less than the short-term loan.
- No collateral is needed.
- Process that is hassle-free
- Fast Verification
- Minimum documentation
Eligibility Criteria for availing from a loan personal the long term:
- Must you be an Indian citizen or permanent resident in India.
- Must be at least 21 years old
- It is recommended to earn a monthly income of at least Rs.30,000
- You should have a regular income stream
How to apply for an individual loan to pay for longer-term use:
- Complete the online application form for your bank.
- Upload the required minimum documents.
- The documents and KYC will be checked.
- After confirmation, the loan amount will be transferred into your bank account immediately within 24 hours.
The minimum documents you need to be submitted:
- Aadhar Card
- PAN Card
- Address Documentation
- Salary Slip for the 3 months ago
- Bank statements from the last six months of your account for salary
- The e-NACH requirement is obligatory.
Conclusion
It is a Personal loan that is taken out to pay for the long term can be beneficial in times of need particularly when you need immediate assistance. Additionally, it has lots of benefits as it is a long-term loan and the EMI due is less than short-term loans. But, it is important to have a solid credit score and be able to avail this loan when truly needed.
