A personal loan is a type of short to medium-term loan that can be utilized by consumers for personal or business purposes, excluding speculative uses. Typically unsecured, these loans do not require consumers to provide any collateral or security for approval.
In addition to traditional personal loan options, many banks and NBFCs provide a range of unique personal loan products tailored to meet the diverse financial needs of their customers. Below is a brief overview of some of these personalized personal loan variants:
Instant Personal Loan: Personal loans with instant approvals and quick disbursals are typically pre-approved by banks and NBFCs for their qualified customers, based on their creditworthiness.
Short Term Personal Loan: These typically have brief repayment terms, spanning from a few days to 12 months, best suited for individuals looking to borrow smaller amounts.
Pre-Approved Personal Loan: Usually offered by banks and NBFCs to their existing customers based on credit history, income, and employer’s profile.
Personal Loan Balance Transfer: Allows borrowers to transfer their outstanding personal loan to a new lender for lower interest rates or better loan terms.
Top Up Personal Loan: Offered to existing personal loan borrowers who need additional funds, usually based on a satisfactory repayment history.
Personal Loan for Higher Education: For individuals requiring funds for pursuing higher education in India and abroad.
Lenders of personal loans ask applicants to provide documentation of their identification, income, ability to repay the loan, and address. These forms are essentially the same for all lenders. When requesting a personal loan, you will often need to provide the following several sets of documents:
| Requirements | Salaried Individuals |
|---|---|
| Proof of Identity | Passport, Voter’s ID, Driving License, Aadhaar Card or PAN Card |
| Proof of Residence | Aadhaar Card, Passport or utility bills |
| Proof of Income | Salary Slips, Bank Account Statement, Form 16 |
