Apply for a Personal Loan Irrespective of Salaried or Self-Employed Careers

You need not look at your profession to apply for a personal loan. It is one of the easiest ways to get instant cash into your bank account and lead a healthy and secured life. You should not stop your personal growth at all due to the unavailability of funds. This should be the last thing on your mind. You have many desires and needs in life which should not stop due to finances. Nowadays, you can get a personal loan with ease and without much questions asked. The best part about such personal loans is that you can spend it anywhere you wish to, and it is not a lookout of the lender. They should get their EMI on time and that is the only catch in such a deal. So, let us look at who can apply for a personal loan.

Who can apply for a personal loan?

Personal loan can be applied by anyone who has a steady income and can make a payment of the installments as decided by the lenders. This could be for salaried as well as self-employed entrepreneurs. The application procedure is the same, but the documents required may be a little different for individuals.

How to Apply for a Personal Loan?

Personal loan application can be done by visiting the banks or non-financial institutions. They would help you with the form to be filled duly with all the information required to do a background verification. It would help them to decide if the loan can be offered or not. This can be decided based on the financial documents that you provide.

Eligibility Criteria

There is not much required for a personal loan. The tenure would decide the EMI amount to be paid on monthly basis and this should be about 50% of your monthly income. If this criterion meets, then you can get a personal loan with ease. In fact, the disbursement would also happen soon without much hassles.

Interest Rate

The interest rate is a cost that the lender would charge you for the loan amount you apply for. The interest rate fluctuates based on your credit history and the strong profile you have created in such long tenure of your career. This can be reduced as well if your score is high and have a good report based on your previous repayments.

Repayment Schedule

The repayment tenure can be anywhere from a year to five years. This is the maximum tenure for a personal loan as it is an unsecured loan. Therefore, the lenders also need a security for the repayment of their principle amount.

Unsecured Loan

Such loans are unsecured and do not need any collateral against the loan amount. This is the best thing to happen to any borrower. It is always a risk for the borrower to lose their collateral submitted in case of nonpayment. Therefore, a personal loan is so popular among borrowers.

Loan without Proofs

You can also get a personal loan without submitting your documents. This can be a situation when you have a new business and do not have much financial documents to provide. This could be with the help of a good relationship with the bank or through a credit card that has a good credit report. So, you should always apply for a credit card and keep it up to date with the payments.

 

 

Credit History

A credit history is important for you to apply for a personal loan and get it approved. This credit history is built over a period of years based on your transactions for repayment. So, you should always make the payments on time or before time to get a good credit score and get personal loans or any other type of loans in the future.

Pre-closure

When you apply for a personal loan, it is always a stop gap arrangement until you get the funds from other sources. This means that you would close the loan before the tenure completion. But would this be a good option if there are pre-closure charges. This charge is based on a percentage decided by the lender on the outstanding loan amount. You should be aware about such things and get a clarity so that at the time of pre-closure there is no issues to be dealt with.

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