Get Maximum Personal Loan Disbursed At Minimum Documentation
Personal loan is an unsecured loan which is offered by various private financial companies like LoanTap, TATA Capital, Fullerton as well as leading banks of India. The personal loan disbursement happens on the key criteria such as:
- Income level
- CIBIL score
- Credit history
- Repayment capacity
- Employment history
Because; personal loan is an unsecured loan hence; the individual is not asked to put up collateral/ or any valuable asset to avail this loan. Since; the personal loan has a greater risk at the lender’s side, the interest rate of personal loans are usually high when compared to other loans.However, like any other loan, defaulting on a personal loan is definitely not a good idea, as it would show up on your credit report and lead to problems when you attempt to apply for credit cards or other loans in the future.
How Much Personal Loan I will Get? It is a genuine curiosity that hits in the loan applicant’s mind. The minimum and the maximum personal loan disbursement limits are set by the banks as well as private lenders. If you want to learn how to get a personal loan, you need to be prepared to be in that loan bracket approvals set by the bank or financial companies.
The loan applicant is asked to show all his/her income proofs along with other documentation. These days, banks and alternative funding groups want to see information — lots of information. They want to see a full, complete financial package.
Maximum Personal Loan Amount Gets Disbursed?
Below are the 4 important factors that determins the maximum personal loan amount you qualify for:
- Your income
- Your credit score
- Repayment capability
Your income and expenses also will play a key role in the size of your personal loan. To get the maximum-sized personal loan, you will need a strong income and low expenses. Banks look closely at these figures, so make sure you lay them out clearly.
It will also help if you can boost your credit score before applying. CIBIL credit score have a huge impact not only on your personal loan approvals but; also on the interest rates lenders charge.
When calculating the maximum personal loan amount in the case of salaried people, the bank as well as the financial institution takes care that the EMI does not exceed 30% to 40% of the applicant’s take home salary. Furthermore; any existing loans which are being repaid by the loan applicant are also taken into consideration when calculating the loan amount.
For the self-employed; the personal loan value is determined on the basis of the profit earned as per the most recent acknowledged Profit/Loss statement, while taking into account any additional liabilities such as current loans for business etc. that the applicant might have.
Documents Required For Personal Loans?
Though the documentation requirements of personal loans vary from one financial institution to another, some of the key documents that you would need to provide with your personal loan application include:
- Income proof such as salary slip for salaried or recent acknowledged ITR for self-employed)
- Address proof documents
- Photo identity proof documents
- Certified copies of degree/license in case of self-employed professional and others as per the lender’s criteria.
How Much Personal Loan Can I Get With My Salary?
Final approval for your personal loan amount depends on your overall creditworthiness, not just your credit score. A prospective lender or the bank will review several factors including your credit history, gross monthly income, and other debt payments.
Lenders will be analyzing the capacity to repay a personal loan by determining your debt-to-income ratio. This will be typically the percentage of your monthly salary that is used to pay off debt.
How Many Personal Loans Can You Have at Once?
Lenders as well as banks of India have their own set of rules when it comes to lending unsecured loans to the individuals. There are banks as well as private fintech companies which approves 2nd personal loan even if the earlier one is still going on. Qualifying for the 2nd loan with one existing completely depends on your credibility, repayment capacity and income.
For example, a private bank may not qualify your personal loan application since; you have one already have more than one loan going on. But; a bank like SBI is offering the same to its bank holders. The example was just for an easy understanding hence; purely conincidential.
When Is The Right Time To Borrow A Personal Loan?
Some situations lend themselves in borrowing the loans. Also, you can use this loan to pay for anything you want, unlike student, auto or mortgage loans. Here are some effective ways to use the loan for personal reasons:
- Pay off high-interest credit card debt. When you have a lot of high-interest credit card debt, it might be a good choice to take advantage of unsecured loan to pay it off.
- Consolidate debts. Consolidating your debts is a bit different from paying off your high-interest debt. Regardless of your other loans’ interest, you could use a personal loan to pay them all off. That would likely make it easier for you to manage your bills, and you’d have lower monthly payments.
- Pay for something you need. For instance; you need to take a professional course and you don’t have enough cash to pay the fees, or you need money to pay for medical expenses, wedding expenses, education fees etc. Hence; the unsecured loan proves to be a generous solution to get emergency cash.
Connect with Service Provider
Get connected within 24 hours to pre-screened, trustworthy and small business friendly service providers for Services in top Indian cities