Bank finance articles and tips

Personal loan is non-secured or unsecured finance which is available to everyone who doesn’t have good credit history other than good income. In the context of borrowing, there are few documents to submit and the loan is approved.

There are both secured and non-secured loans in India. Since the secured loans are difficult to borrow, the non-secured ones are easy and available for even bad credit borrowers. Personal loan is non-secured or unsecured finance which is available to everyone who doesn’t have good credit history other than good income. In the context of borrowing, there are few documents to submit and the loan is approved. Time taken for approval hardly extends to few hours.

Process of borrowing

Choose a good lender that doesn’t charge high personal loan interest rate. This is indeed difficult as non-secured loan usually accompanies higher interest rate. Therefore, if you don’t want to experience higher charge on your finance, better shop around and find lenders who are willing to offer you loan at lowest interest rate.

For cheap personal loan, you need to have good income. Once you have chosen your lender, fill up application form including date of birth, income detail and all other details necessary to mention. Once you are over with application, you need to submit documents, especially bank statement and income proof, age proof, current address and permanent address proof.

If you happen to be salaried individual, then you must submit salary slip of three months. Self-employed person needs to submit bank statement, CA approved P&L and Balance sheet.

Once you are over with document submission, the bank verifies them. Usually verification is done shortly and if it is authenticated agreeably, the requested loan is approved right away. One of the things you should know of is the income. It should be in commensurate with the bank’s demand or else the requested finance may have higher interest rate.

Since such type of unsecured loan always comes in higher interest rate, a borrower should take it at urgent financial condition. You should also understand such finance involves income consideration if you mean borrowing secured personal loan. Surely, personal finance is of two types – secured and non-secured.

To avail secured finance, you need good credit and income. This finance has lowest interest rate. You can avail it for longer repayment period. More so, the loan amount is considerably larger to fund your immediate demands. On the other hand, unsecured personal finance doesn’t have extended version of repayment duration and comes in at higher interest rate.

Hence you should decide which type of personal finance you would like to avail for your need. If you are not willing to secure property as collateral, then non-secured option is good. However it has higher interest rate.