Why the number of personal loan consumers is rapidly growing?

As we all know that the cost of living is increasing day by day, it becomes difficult for an individual to fulfill all his/her financial needs. In case of an urgent personal financial need which requires a lump sum amount, a personal loan is the only hope. A personal loan can be provided by a bank or a Licensed Money Lender. The borrower is agreed to repay the loan plus interest within a specified tenure. In general personal loans are provided to satisfy small and medium financial requirements. A personal loan can come in handy in really desperate times like medical emergencies.

The types of personal loans

Financial institutions provide many different types of personal loans according to the needs of people. The interest rate for a personal loan may vary depending on the scheme/offers of personal loan you are taking and it also varies from bank to bank. A personal loan can be of many different types including

  • Medical loan
  • Corporate loan
  • Business startup loan
  • Marriage loan
  • Fast Loan
  • Loans for unemployed
  • loans for small scale business
  • Personal loan for low Cibil Score

Things you need to know before you apply for a personal loan

A personal loan can be used to fulfill any kind of personal financial need but before you apply there are some certain things you need to consider. The most important aspects to consider are loan amount, repayment duration and interest rate. You must compare different offers carefully that are provided by financial institutions before you apply for a personal loan. Always pre-calculate EMI using the EMI calculators mostly available online on the lender’s website. This will help you to decide the loan amount so that you don’t mess up your monthly budget by paying higher EMIs. Also, check for the processing time and processing fees which is mostly hidden till the end.

What are the documents required to apply for a personal loan?

The documentation required for a personal loan may vary from lender to lender as every financial institution has its own terms and conditions for approving a personal loan. But in general there are some documents that almost every lender asks for, this includes your current home address and address proof, your income proof to know your current income level, identity proof and age proof.