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As the name suggests a loan that can help to sort our personal financial needs is a personal loan. A person can any time face a need for an extra fund to fulfill the need at hand. No doubt, at that point in time friends and relatives do help us and we can get enough time to repay the amount. But what if our friends and relatives are not in the sound state to support us? From whom we can borrow?
Such situations can anytime be avoided by finding a right and trustworthy lender and what can be better than a Bank/ NBFC that works professionally to help us with the required funds. For an immediate requirement, a Personal Loan can be the right choice.
A personal loan is an unsecured loan which is borrowed to fulfill any current financial requirement. A borrower is not required to secure the loan with any collateral to avail of the personal loan and also is free to use the availed amount as per the need. A personal loan can easily be availed from a Bank/ NBFC with minimal documentation. With the growing technology, you can easily search the personal loan providers online or you can anytime visit Mudrahome to find the suitable Bank/ NBFC (personal loan providers or lenders) that fits well in your budget by filling little information about yourself.
These days Banks and other financial institutions provide a facility of pre-approved Personal Loans that allows the borrower to get the loan amount within a few hours of submitting the documents. But before moving on to the next step towards the application of your personal loan, it is important for you to prepare a checklist of things to keep in mind before you apply for the same.
A loan is sanctioned as per the income and the repayment capacity of the borrower. Documentation is an integral part to avail any kind of loan. Documentation depends on the number of factors such as profession, loan amount requirement and most importantly income. The documents required for a personal loan vary in the case of salaried and self-employed individuals. Though the KYC documents remain the same both the salaried and self-employed individuals have to submit their income documents according to their profession.
While completing your documentation for the loan you also have to examine your financial situation. This means you have to evaluate the soundness of your financials, income, and expenses, existing loans, etc to understand the repayment tenor. Your debt to income ratio (income as per the expenses) determines the time or years that you need to repay your loan. Your financials also helps to calculate your eligibility for the loan. Eligibility means whether you are fit and qualified enough to obtain the funds by satisfying the terms and conditions of the lender. So your financials let you know how much loan you can borrow and bear along with your current debts or expenses. You can easily check your eligibility on the website of Mudra Homes without affecting your credit score.
Credit score along with your finances is also a key to determine the amount, interest rate and the tenor of the loan. The credit score is also known as CIBIL Score. It is a three-digit number that shows the summary of credit history and the rating of the borrower. The credit score ranges from 300 to 900, highest the score highest is the possibility of availing the loan on your own terms. We can always keep a check on our credit score by checking it online but also have to be a little careful as few sites might not give you a free check and can adversely affect it. The website of Mudra Homes allows you to check your credit score without affecting it negatively by filling your personal information like DOB, PAN Card Number, Name, E-mail ID, Contact Details and Residential Address.
After the complete check of the credit score, documents and the eligibility you can fill the user-friendly personal loan application form on the website with the information like Gender, Employment Type, DOB, Monthly Income, Co-applicant, Type of Firm, Annual Turnover and any other rental or other sources of income. (Eligible For Loan With A Low Credit Score?)
As we all know that everything comes with a cost. Every kind of loan has its own pros and cons. To opt for a personal loan depends on your current circumstances. If you need funds and also own a credit card then a personal loan is certainly advisable. A bigger personal loan can help you to pay your smaller debts with high-interest rates like credit cards and student loan. No doubt, the personal loan comes with a variety of benefits like the flexibility of usage, quick availability, minimum documentation, no collateral needed but we also cannot avoid the disadvantages that come along such as higher interest rates, no partial pre-payment facility, and higher credit rating. You have to ensure to honor your commitment as failing to repay the loan amount will not only affect the credit rating but can also lead you to legal trouble. So, before taking a step ahead make sure that you have checked all other alternatives like shares, gold or any other asset and you surely need funds. These funds are useful to use for medical emergencies rather than spend on vacations. Always weigh the pros and cons of the loan before you apply for it.
