Important documents you must have before applying for personal loans

One of the most popular and safe options to get money from banks and other financial institutions is to take personal loans. Whether you wish to go for a vacation or want to buy a precious gift for your family, personal loan will give you the freedom to do so without any worries.

These days it is very common to see your mailbox flooded with emails which offer you the best kind of personal loans. These banks and companies offering loans make sure that the offers and deals are customized especially according to your needs and requirements. Personal loans are the easiest to avail. This ease to get the loans makes them a popular choice among the people in India. Another thing that makes personal loans most sought after is that you do not need to give any collateral or guarantee. Also, the usage of the loan amount isn’t monitored by the lender.

If you too are looking forward to avail personal loans, then it becomes imperative that you know all the eligibility criterion that is essential for any individual who wishes to take loans. Knowing the eligibility details will also make it easier and simplified for you to avail the loan and go through the entire application process.

When you have decided to apply for personal loans you should be ready with the documents that will be required in completing the formalities. If you want to apply for the personal loans successfully, you need to furnish some important documents.

Let us tell you the list of those documents you will be required to present to the banks.

  1. Photo identity card
  2. Proof of residential address
  3. Proof of residential ownership
  4. Proof of income
  5. Proof of employment documents
  6. Bank statement
  7. Proof of investment
  8. Passport sized photograph
  9. Age proof

These documents along with the other financial statements will help the banks and other financial institutions who are lending you money to verify your credibility. It will also allow them to understand your financial stability and credit worthiness. It is on the basis of these documents that the lender will decide whether your request for personal loan shall be approved or not. Also, as you are not bound to provide any collateral while availing personal loans, chances of default by the borrower increase. Therefore, it becomes important for the lender organizations to verify your identity.

It is suggested that before you apply online for personal loans, you do not get lured by just low-interest

rates. Do not fall into the trap of low-interest rates. You should rather look if the rates being offered are

flat interest rate basis, or reducing interest rate basis. Therefore, be cautious of the interest rates being charged before you apply for the loan. If you think that you will have to pay just the interest charges when you take any loan, then you are wrong. There are a plethora of other costs and hidden charges involved in the loan and you should be aware of them. Banks might charge you the processing fee. It can be up to 1-2% of the total loan amount, or some banks and institutions even charge a flat processing fee. This processing fee then adds up to the total cost of the loan and can prove to be costly to you if you do not pay attention to it while you are applying for the loan.

 

Get all your documents in the right place and be assured to avail personal loans.

Post Author: Jennifer Slegg

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