How to get a Personal Loan?

‘‘A small loan makes a debt. A great one an Enemy’’ 

Whether to buy the latest gadget from the Apple store or planning a holiday tour to the Bahamas one needs to plan in advance and start saving few bucks before D-day and most of the time we usually face the problem of paucity of funds. Thereafter one starts researching various sources from which funds can be procured. In today’s article, we’ll be discussing one of the easiest and flexible ways of getting the credit that is “Personal loans” 

So before diving into the topic of how to get a personal loan one need to understand what exactly is a personal loan; 

In simpler terms, it can be described as one of the flexible sources of taking credit where usually no collateral and security is required. One gets quick access to funds and can manage his/her own financial plans in a better manner. Whether you want to buy the latest Xbox games or plan the interior decoration of your home you can take a personal loan and repay them with flexible repayment options. 

Worrying about vacations or wedding plans you can surely knock on the bank door for personal loans. Frankly speaking, you can opt for personal credit technically for everything like children\’s school fees, buying expensive watches or shoes. They are one of the most common sources of procuring credit right now. 

How you can avail the benefit of Personal loan? 

So there are few steps that you need to fulfill before applying that include your age criteria, financial status, current employment, work experience, and a lot more. Below are mentioned a few points that you need to remember next time you approach any bank for a personal loan application. 

Age Criteria 

Generally, the minimum age to go apply for the loan is 21 years but this isn’t uniform across all banks many banks require you to have a minimum age of 23 years. 

Loan Amount 

The loan amount can vary anywhere between 1 lac to as high as 75 lacs offered by HDFC bank. But some banks restrict the maximum amount to 25 lacs. The benefit of this facility is you don’t have to worry about day to day expenses during bad times with fewer compliances you can opt for personal loans even below 1 lac Rupees. 

Monthly Income 

Lenders are willing to give you if you have a stable monthly income or you are working for a reputed organization since that ensures your credibility and financial background. Certain banks require you to have ₹15000 pm to be eligible for applying. 

CIBIL Score 

Every time you fulfill your loan obligation your creditworthiness is improved thus your CIBIL score. It ranges between 300-900 points. If you have a credit score more than 650 it is considered good on other hand a credit score in the range of 300-550 is considered as bad. Credit score that falls in this range means you will need to take serious measures to improve it. Having a bad credit score will not make you eligible to avail a loan or even get a credit card. 

Work Experience 

Normally for salaried individuals, the requirement is that they need to be Employed at the current company for at least 6/12 months, and for individuals who are Self-Employed should be associated with a Business that is having a tenure of at least 3 years (continuous) Or ITR of last 3 years. Now that you have fulfilled all the eligibility requirements for your personal loan the next step is the what documents one requires to apply for a loan, 

Documents required 

• Identity proof (copy of passport/voter ID card/driving license/Aadhaar) 
• Address proof (copy of passport/voter ID card/driving license/Aadhaar) 
• Bank statement of previous 3 months (Passbook of previous 6 months) 
• Two latest salary slip/current dated salary certificate

From where to take loan? 

After you have collected all the documents and you fulfill all the requirements the next step is to actually search for the bank that gives the best deal in the Market. I’ve attached the latest interest rate charges by top banks in India below 

But wait there’s a tedious process involved in taking loans from banks. Firstly you need to visit the nearest branch of your favorite bank, do all the manual paperwork, afterward the bank will check your creditworthiness and the story continues. You probably have to wait couple of days for sanction of your loan application and the processing fee charges which are as high as 6%. 

And here MoneyLoji comes into the picture, it aims to fulfill the gap between potential lenders and borrowers. Speed and accessibility in offering loans with strict credit underwriting models make it a very different platform from traditional bankers and an outdated process of availing loans. 

MoneyLoji is India\’s first digital platform aggregator of all financial products for salaried, self-employed as well as MSME enterprises. It offers the Fastest solution to financial products in a secure environment within 8-10 minutes 

Imagine getting a loan application within Such a short span of time. So next time you think of availing personal loan think MoneyLoji because “when time is money we got you covered”.