Are you in sudden need of funds? A best personal loan is the best way to fulfill all your financial goals. It can be used to accomplish wedding expenses, medical treatments, travel expenses, home renovation, educational expenses, and many more. Having a good credit score and meeting all the loan eligibility criteria can help you to avail a personal loan quickly with lower interest rates. It’s always recommended to check and do proper research before you apply for a loan. Check out the below FAQs that will help you with all your queries and doubts regarding loans.
What is a Personal Loan?
A personal loan is an unsecured loan provided by banks, non-banking financing companies, or lending platforms without any collateral or guarantor. Generally, it is used for debt consolidation, meeting medical emergencies, home renovation, business needs, buying certain assets, and many more.
How to Check the Eligibility Criteria for Getting a Loan?
Most lenders update the personal loan eligibility criteria on their respective websites. Go through the information and know whether you can avail a loan or not.
What is the Maximum Loan Amount that Can be Borrowed?
The maximum loan amount that you can acquire depends on whether you are a salaried person or self-employed. And depending on the lender and your monthly income, the amount may vary. Well, a instant personal loan through Buddy Loan is always easy, instant, and hassle-free. On this platform, you can apply for a loan amount of up to Rs 15 lakh or more depending on the needs.
What are the Documents Required to Apply for a Loan?
- Proof of identity – Voter/Aadhar/PAN
- Address proof – PAN/Passport
- Proof of income
- Photographs
- Proof of business (for self-employed individuals)
These are the general documents that you need to submit. But check with the lenders if you need to provide any other document.
What is the Repayment Tenure for Personal Loan?
The tenure can be between 1-5 years. Before you apply for a loan, check the details with your lender.
What are the Things You Need to Look for Before Applying for a Loan?
Before applying for a personal loan, you need to look at all the below key elements and compare them to choose the best.
- Interest rate is one of the most important factors to consider as it makes a substantial difference. The ROI ranges between 10% p.a. To 24%. Buddy Loan offers 11.99% p.a.
- Check for repayment flexibility and also ensure is there any penalty for making late payments.
- Even if you are offered a low-interest rate, a high processing fee can be heavy on your personal loan amount. So be careful about it.
- Make sure you have a good credit score. Otherwise, improve the score and then apply for a loan.
Why It is Necessary to Have a Good Credit Score?
Your credit score determines your creditworthiness. Be sure the score is good enough to avail the best personal loan at lower interest rates. If you are planning for a personal loan, maintain it from now onwards.
Conclusion!!
It is vital to do your research before you apply for the best personal loan. There are lots of factors to look for and based on your convenience, make the decision accordingly. Talk to an expert, compare the interest rates, tenure period, processing fee, loan amount, everything to choose the best lender.
