A personal loan is a short-term loan to assist you with your finances. This payday loan is secured against a future paycheck. These loans have become quite popular today, and now this is the main way to get financial assistance in the form of a cash advance. A personal loan is a type of debt which is made for personal, family, or household use, and which is neither a business loan nor a long-term mortgage loan. The lender loans money to the borrowers. The borrowers pay back this amount, usually but not always in regular installments.
This service is generally provided at a cost, which is referred to as interest on the debt. With a personal loan one can meet his financial requirements. Be it any ceremony in the family, a surprise gift or a grand vacation, personal loans provide a helping hand.Â The personal loan helps to take care of all kinds of expenses in a short time period. This type of loan usually covers travel expenses, holiday expenses, medical expenses, marriage expenses, honeymoon expenses or any other personal type expenses.
Eligibility criteria for personal Loan will differ for salaried and self employed individual. Your age, annual income, work experience in the current organization and your total work experience, educational qualification and your profession are all considered by Company to decide on a personal loan amount for you. Some of the important deciding factors..
There are common list of documents which most Banks and Financial Institutions accept for Personal Loan. Financial documents differ for Salaried and Self Employed individual. Processing of these documents for Personal Loan will take a minimum of one week.
List of Common Documents:
– Complete Application Form.
– Latest Passport size Photograph.
– Identity Proof and Signature proof: Bank Signature Verification, Photo Pan Card, Passport, Driving License or Voter’s ID card, employee identity card as identity proof and signature proof incase of government employees.
– Address Proof: Passport, Driving license, Ration Card, Voter’s ID card, Bank statement, Rent Agreement .In case your present address is different from that given in these documents you can produce telephone bill, electricity or water bill as proof of residence.
– Date of Birth Proof: Pan Card, Passport, Driving License or LIC policy. Date of Birth certificate.
– For all the running loans, loan Schedule and bank statement of the Bank from which EMI is debited.
List of Financial Documents for:
– Minimum 3 months Salary Slips starting with the Latest Salary Slip duly authenticated by the Employer (the above to clearly indicate the breakup of Gross Earnings, Deductions and Net Salary).
– Form No.16 with clear computation of income.
– Latest 6 months Salary A/c Bank statement.
– Copies of degree certificates as proof of highest qualification for professionals and government employees.
– Latest acknowledged IT return.
– Self Employed Individuals
– Computation of income for the last 2 years certified by a C.A.
– P&L and balance sheet for the last 2 years certified by a C.A.
– Latest 6 months Bank Statement.
– Latest Landline Telephone bill, lease deed, municipal tax receipt, title deed as proof of office is needed.
– Latest sales, Copies of acknowledged IT returns for the last 2 years as proof of turnover.