Know About Personal Loan:

A personal loan stands as an unsecured financial option, devoid of collateral or security backing. This characteristic imparts flexibility to its utility, allowing for unrestricted use. The following are ways in which a personal loan can prove beneficial:

Debt Consolidation: By consolidating multiple debts into a single loan featuring a lower interest rate, one can save on interest payments and streamline the management of debts.

Home Renovation: Utilizing a personal loan for funding home renovation projects can enhance the value of your home and elevate your living conditions.

Medical Expenses: In the event of unforeseen medical costs, such as emergency surgery or hospitalization, a personal loan can serve as a financial resource to cover the incurred expenses.

Emergency Expenses: Personal loans are valuable for covering unexpected costs, like medical emergencies or car repairs, thereby preventing financial hardship.



Eligibility:


To qualify for a personal loan, you have to meet certain criteria. Below are the important factors that lenders take into consideration to decide your eligibility for a personal loan.

  • Age should fall under the range of 21 years to 60 years
  • Net monthly income should be 15,000/- for salaried and self-employed, yearly transactions should be a minimum of 20 lakhs
  • Credit score must be above 650
  • Debt-to-income ratio
  • Employment stability
  • Maintained a good credit score
  • Clear repayment history
  • Must be a Resident Citizen of India
 
Documents Required

  • Identity Proof  – Passport, Voter’s ID, Driving License, PAN Card, Aadhaar Card
  • Proof of Residence or Address Proof – Passport, Voter’s ID, Driving License, PAN Card, Aadhaar Card, Electricity Bill, Telephone Bill, Ration Card 
  • Age Proof –  Passport, Voter’s ID, Driving License, PAN Card, Aadhaar Card
  • Income Proof – 1 year Bank statement, 3 months Salary Slips
  • Employment Proof – Employment Certificate, Office address proof
  • GST or VAT Registration for Self-employed
  • Photograph – Passport-size photographs
  • Business proof – Business registration documents such as a partnership deed, Memorandum of Association (MOA), Articles of Association (AOA), etc.
  • Income tax returns – Documents of the past 2-3 years to verify income and tax payment history

Fees & Charge

All applicable charges will be determined in accordance with the policies and regulations of the respective Bank and Non-Banking Financial Company (NBFC). The fees and charges associated with services, transactions, or financial products will be subject to the terms and conditions set forth by the specific institution. It is advisable to carefully review the fee structure, interest rates, and any other associated costs provided by the Bank or NBFC before availing any services or entering into financial agreements. Additionally, for the most accurate and up-to-date information, it is recommended to directly contact the institution in question or refer to their official documentation.

FAQs

What services does Insure Borrow Safe offer?

Insure Borrow Safe provides Direct Selling Agent (DSA) services for a variety of loans, including Personal Loan, Home Loan, Business Loan, Education Loan, Loan Against Property, Doctor’s Loan, Car Loan, Two-Wheeler Loan, and Plot Loan.

Is there a minimum personal loan amount that I need to borrow?

Yes. Though the exact amount of the minimum personal loan amount varies from one lending institution to another, most lenders have set their minimum personal loan principal amount at Rs. 30,000.

What is the tenure of a personal loan?

Personal loans feature tenure of 1 year to 5 years or 12 to 60 months. In rare cases, shorter or longer personal loan tenures may be allowed by the borrower on a case by case basis.

How to decide which bank/financial institution to take the loan from?

It is always a good idea to compare the offers of individual banks before you decide to settle on a specific provider. Use online tools like the loan eligibility calculator and personal loan EMI calculator to find the loan option that suits you the best. Some of the key factors to consider when deciding on a loan provider include interest rates, loan tenure, processing fees and others.

Are personal loan interest rates fixed or floating?

In case of a fixed rate personal loan, your EMI amount remains fixed therefore every month during the loan tenure, you will pay the exact same amount as EMI. In case of a floating rate personal loan, the EMI amount will keep decreasing as it follows the reducing balance method of calculating interest payout on a personal loan. In case of a floating rate, the applicable interest rate may be varied by the bank periodically as per the new MCLR rules, floating interest rates may be changed either on a half yearly or yearly basis.