Personal Loan – Purpose to take Personal Loan – Benefits – Documents Required

What do you mean by personal loan?

Loans are taken by any individual or organization to fulfill their short term or long term needs. In this article, we are going to discuss the personal loan, which is generally taken by the individuals to fulfill their short term needs or requirements.

Personal loan fulfills our dreams. There are many uncertainties present in our life and these uncertainties create breakers between our dreams and the reality. Personal loan helps us to cross these breakers.

Now every bank and financial institution is ready to give affordable & flexible Personal loans to attract more and more customers. Now minimum documentation is required to take loans. You also get quick approval of your loan. All financial institution have their own rates of interest, eligibility criteria and loan repayment tenure.

Financial institutions give Personal loan for the following purpose:

  • For holidays/vacations.
  • Home renovation
  • For wedding expenses
  • For education
  • To purchase consumer durables and equipments
  • To cover medical expenses etc.

Common Documents required to take Personal Loan

  • Passport Size Photograph.
  • Xerox copy of identity proof.
  • Residence Proof
  • Latest salary-slip
  • Form 16

Benefits of availing of a Personal loan

  • Personal loan get quick approval if your source of income is permanent.
  • Online approval is also given by some financial institutions

What plays an important role in getting Personal loan approval?

  • Source of income: Person with stable and adequate source of income gets quick approval.
  • Tenure of job with a particular entity: long tenure of job with a particular company helps to take quick loan approval.
  • Past loan repayment record of the person: Loan giving institutions check whether you’re past loan repayment record is good or not.