Personal loans are a form of finance available to all Indian citizens. At times when there is a shortage of funds in an Indian household, people prefer to take out a personal loan instead of asking friends or family for help.
As per the data released by RBI, the demand for personal loans grew by 12.3% in February 2022 as compared to the previous year. Further, the overall demand for credit increased to 6.5% in February 2022 as compared to 1% in February 2021. This information shows that Indians trust their banking and credit systems and are willing to take out a personal loan when they need money.
Needs, desires, and wants are common in any society. Fulfilling them may require some financial support. Personal Loan In Faridabad – Huda Market is a reliable source of financial aid. As with any sort of liability, personal loans come with their share of risks. So, it is advised that people borrow money only after proper research.
Personal Loans and Their Types
Personal loans are short-term, unsecured loans. They can be used for a range of reasons, such as big purchases, weddings, buying vehicles, etc. They can be repaid within two to six years, and the repayment is made through monthly instalments. To understand more about EMIs, read this blog on the Piramal Finance website.
Eligibility to Avail of a Personal Loan In Faridabad – Huda Market
The factors that affect your eligibility for taking out a Personal Loan In Faridabad – Huda Market are
- Credit Score People with a credit score of 750 or above are seen as creditworthy. Banks and other lenders tend to rely more on such people and are more willing to lend money to them.
- Employment Type For salaried employees, banks also consider the type of job they have been doing and for how long. For self-employed people, lenders check work experience and the length of time the business has been running.
- Employer Reputation Among salaried applicants, government employees are provided loans at lower rates than MNC employees due to a higher certainty of income. Businesses run by professionals such as CAs, CSs, MBAs, etc. are seen as more reliable than others for personal loans.
- Age Banks prefer giving loans to individuals in the age range of 21 to 65 years because of their earning capacity.
- Minimum Income Lenders prefer applicants with higher incomes because this reduces the risk of default and non-repayment. Most bank websites have information about the minimum monthly or annual salary and gross annual income that applicants must have.
- Repayment capacity Banks consider the applicant’s EMI/NMI ratio to judge the repayment capacity. An EMI/NMI ratio of at least 50%–55% is a requirement with most banks.
The following are the eligibility criteria for salaried and self-employed applicants for availing of a personal Loan In Faridabad – Huda Market:
|Type of Employment
|Minimum Work Experience/Business Continuity
|Rs 25,000 per month
|1 year and 6 months with current employer
|750 or more
|Rs 15 lacs per annum
|2 years of business continuity
|750 or more
The above eligibility criteria vary from one lender to the other. You should check the criteria of your preferred lender before you apply.
Documents Required to Avail of Personal Loan In Faridabad – Huda Market
The following are the basic documents that you should submit with your personal loan application:
- Passport-size photograph
- Income proof: Bank statements of the last 3 months (for salaried persons)
- Proof of continuity in the current job: Form 16 or appointment letter (for salaried persons)
- Proof of continuity of business: Trade license, establishment, or sales tax certificate
- Income tax returns of the last 2 years (for both salaried and self-employed applicants)
- ID proof: Passport, PAN card, driving license, voter ID, Aadhar card
- Address proof: passport, ration card, Aadhar card, utility bills, voter ID, LIC policy receipt
- Credit (CIBIL) Score
The documents required for a personal loan In Faridabad – Huda Market may vary based on the lender. You should check your lender’s requirements well in advance before filing the loan application.
Things to Know Before Taking Out a Personal Loan
A personal loan In Faridabad – Huda Market should be applied for after doing proper research. There is a great risk element in personal loans as well. So here are a few things that you should know before applying for a personal loan:
- Maintaining a good credit (CIBIL) score of at least 750 will increase the acceptability rate of the applicant while applying for the loan. Experts at Piramal Finance have given some tips to improve your CIBIL score.
- Compare interest rates offered by various lenders before choosing one for your loan.
- Hidden and other costs such as processing, pre-payment, and late payment fees should be checked first.
- While finalising the amount of the loan, you must consider the needs for which you are taking out the loan.
- Make a proper repayment plan. Identify and keep aside sources of income from which payments can be made.
- Be careful and don’t fall for plans and offers that sound too good to be true from different lenders.
A personal loan is a reliable and readily available source of finance for Indians to meet their needs and wants. You should now have a clear idea about the types of eligibility and requirements for a personal loan in Faridabad – Huda Market.
This is a general overview. In case of any queries, it is always better to research and consult with experts. For more information regarding the availability of personal loans, consult with experts at Piramal Finance, who will give you the right guidance and support. While there, make sure you also check out their other financial products, services, and articles.