How and where to apply for an emergency personal loan in India

The expenses to maintain a good lifestyle is something that most of us struggle with. And why won’t we? After all, the costs of living are in great contradiction with the flow of capital amongst the people. Further, at times, most of us even have to borrow money by swiping our card; this increases the overall amount of debt over our shoulders. However, now you can now relieve some of your stress by applying for a personal loan and consolidating your debt. Other than that, there are a number of other features of applying for an emergency personal loan in India, and a few of them are here as follows:

• ·         A personal loan is unsecured in nature; thus, you don’t have to provide any sort of collateral to the financial institutions in order to make use of the loan amount. Further, there are no restrictions on the usage of the loan amount; you can purchase a new gadget, or fund your last minute vacation to an exotic destination.

• ·         The repayment of a small amount personal loan is done in the flexible form of EMIs (equated monthly installments) over a certain period of time. This will greatly help you to plan out and repay all of your borrowed sums in time.

• ·         Further, the financial institutions also provide you with an EMI calculator on their online websites for free-of-cost. Thus, you can make use of this tool to calculate your installments on the basis of the principal borrowed amount, interest rates charged and the repayment tenure opted by you.

However, you must remember that the new-age banks and NBFCs (non-banking financial companies) have set eligibility criteria that you need to meet in order to obtain a small amount personal loan. However, these eligibility criteria differ from one lender to another; but we have compiled a list of few basic ones that will be applicable for most of the financial institutions, and they are:

• ·         The financial institutions check your monthly income in order to gauge your repayment capability. This helps them to understand your loan worthiness. Thus, ensure that you have been working at your current organization for at least 2 years before applying for a personal loan through the new-age financial institutions.
• ·         The banks and NBFCs (non-banking financial companies) also scrutinize your credit score and history to get a better understanding of your financial management of funds. Thus, ensure that you repay all of your impending and current debts on time.
• ·         Further, also ensure that you don’t have any impending repayments for other loans when you are applying for an urgent personal loan.

The different sets of documents that you need for a personal loan are:

• ·         You need to submit your identity proof in the form of a passport, aadhaar card, etc. along with a duly filled application form.
• ·         Further, also ensure that you have all your salary-related documents such as bank statements, salary slips, etc.
• ·         Other than that, you also need to possess your proof of residence such as electricity bill, passport, etc.