Frequently Asked Questions
Here are answers to some of the most Frequently Asked Questions (FAQs)
A personal loan can be used for any personal expenses, including paying-off unexpected bills, debt consolidation, wedding expenses, higher education, home renovation, travel, shopping, covering a business cost, etc.
A personal loan is an unsecured type of credit, which means you do not have to pledge any assets as collateral.
Here are the common eligibility criteria for a personal loan:
Salaried Professionals
- Minimum Age: 21 years
- Minimum Monthly Income: Rs. 15,000 (should reflect in the bank)s
- Minimum Job Stability: 1 Year
- Minimum Age: 21 years
- Minimum ITR: 1 Year
- Minimum Business Stability: 1 Year
When applying for a personal loan, the following general documents are needed:
For Salaried:
- Aadhaar Card
- PAN Card
- Residence Proof
- Bank Statement
- Income Proof
- Aadhaar Card
- PAN Card
- Residence Proof
- Bank Statement
- Income Computation
- Profit & Loss Account Statement
- Balance Sheet
- Service Tax Registration, License, Registration Certificate
- Clearance Certificate/IT Assessment
- Income Tax Returns
Personal loans do not have any direct tax benefits. However, if you use the funds to renovate your house or to incur business expenses, you may get tax benefits under the Income Tax Act of India.
Your credit score represents your creditworthiness and repayment ability. Your chances of obtaining a loan with favourable terms and a low interest rate are very high if your credit score is high.