Where You can use Personal Loan.

Bank	Interest Rate	Action
HDFC Bank	10.50%*	Apply Now
HDB	13.99%*	Apply Now
IndiaBulls	11.99%*	Apply Now
Bajaj Finserv	11.49%*	Apply Now
Yes Bank	10.25%*	Apply Now
ICICI Bank	10.50%*	Apply Now
Standard Chartered Bank	10.50%*	Apply Now

Personal Loan

A personal loan is an unsecured form of credit in which borrowers do not require to submit any form of collateral or security at the time of making a loan application, unlike home and gold loans. It can be availed by both i.e. salaried and self-employed professionals. Personal loans are a multi-purpose loan which can be used for any of the purposes like wedding, higher education, to consolidate debt, home refurbishing, travelling, etc. The lenders generally do not ask the purpose while availing this loan. Being an unsecured form of credit, the rate of interest is generally very high. Borrowers can apply for best personal loans through multiple lenders after checking their eligibility online on bookmymoney.

Benefits and Features of Personal Loan

Collateral-free loan: The best part about the personal loan is unsecured in nature and it does not require any collateral or security when availed. So, if you require instant funds, you can apply without worrying about collateral.

Minimal documentation: Nowadays, availing a personal loan has become easier due to the hassle-free documentation and verification process online. In the case of instant personal loan, the disbursal process is very fast due to the minimum documents required for approval.

Easy and quick approval: Personal loans have lesser turnaround time, they can be approved quickly and easily after applying. This is why they are the best form of a credit to go for at the time of financial emergency.

Variety of uses: A personal loan is a multipurpose loan which can be put to use for any purpose like wedding, higher education, debt consolidation, travelling, etc.

Personal Loan Eligibility Criteria

Any salaried or self-employed individuals can apply for a personal loan online. However, this is very important to note that the eligibility criteria might differ from one lender to other. Given below are the basic eligibility criteria that are common for most of the lenders. You can check your eligibility at bookmymoney before applying for the loan.

Credit Score: Having a good credit score of 750 or above is important to get your loan application approved easily. So, you must check your credit score before applying for the loan.

Employment stability: Job stability is very important when it comes to getting an instant personal loan Online. For most of the lenders, a salaried professional must have 2 years of working experience with 1 year in the current job and a self-employed individual must have a minimum of 2 years experience in the current job.

Income: A salaried individual must have a minimum income of Rs. 15,000 in case of non-metro cities and Rs. 20,000 in the case of metro cities.

Age: Borrowers also need to meet the age criteria set by the lenders. For a salaried professional age, the bracket is usually 21 to 60 years whereas for a self- employed individual age should be between 21 to 68 years.

Documents required for Personal Loan

The set of documents required while applying for a personal loan online are-

For Salaried Individuals-

Identity Proof: Passport, Driving License, PAN Card or Voter’s ID

Residence Proof: Passport, Driving License, Voter’s ID or utility bills

Income Proof: Latest 3 months’ bank statements showing salary credit

For Self-employed-

Identity Proof: Passport, Driving License, PAN Card or Voter’s ID

Residence Proof: Passport, Driving License, Voter’s ID or utility bills

Income Proof: Audited financial statement of the past two years

Quick tips to improve your chances of personal loan eligibility-

Most of the banks follow stringent rules and policies while lending. So, the borrowers need to follow these simple tips to improve his/her chances of getting a loan approved easily.

1. Try to maintain a healthy high credit score

   As you know credit score is one of the most important eligibility factors that represents a snapshot of your past credit behaviour. To get the best personal loan, a score of 750 or above is required. If you have a lower credit score than this then there is a possibility that your loan application might be getting rejected. So, before apply for a personal loan, don’t forget to check your credit score online to improve your chances of approval.

2. Pay all your outstanding debt

   Before applying for a personal loan, make sure that you reduce your existing debts and credit card bills. If you already have applied for multiple loans or credit cards in your name, getting another loan won’t be easy. Your debt-to-income ratio should not be less or more than 15 percent which is considered ideal in case of servicing a single loan. If you are servicing multiple loans, the combined EMIs should not be more than 50 per cent of your income.

3. Don’t apply for too many loans frequently

   Sometimes borrowers make mistakes and they make loan applications with multiple lenders to get a loan fast. Each time you will apply for new credit, it will get captured in your credit report and thereby bringing down your credit score. So, at least a gap of minimum 6 months is needed to apply for another loan.

4. Disclose all your sources of income to the lender

   While applying for the loan, lenders also consider your income as one of the important eligibility criteria to evaluate your ability to repay the loan. This is why you should always showcase all your sources of income apart from your salary to the lender. This will help you prove to your lender that you have enough resources to make the timely repayment.

5. Apply for the loan based on your repayment capacity

   You should always apply for the loan based on your repayment capacity. This will help you pay back your loan well on time without facing any problem. You can make use of online personal loan eligibility calculator to calculate the EMI amount that you need to pay each month. After knowing the EMI payments depending upon the loan amount that you need, you can request your lender for that loan amount.

FAQs on Personal Loan