What is Personal Loan?
The loan you can borrow from banks to fulfil your personal expenses which are in your highest priority list.
In this polychromic era, it’s very easy to get approved a Personal Loan without facing any hassles. And there aren’t the hard way to fulfil your document requirements too But still it’s not recommended to have the money personal loan to fulfil your all small to big expenses. Keep reading to know why to avoid taking personal loan to bear your all expenses.
Eligibility for Money Personal Loan: –
To avail for personal loan, below are the eligibility you can check for yourself:-
- You are a Salaried Person
- You are a Self-employed Professionals
- Your age must be in between 21 to 65 years
- You must be working with an MNC, public or private company
- You are a Government sector employee (including Central and Local bodies, Public Sector Undertakings)
- Your minimum net monthly income should be at least Rs. 15,000
- Your citizenship must be an Indian
What all Documents Required for Personal Loan:-
It may vary from bank-to-bank for personal loan documents required and also depends on the expected amount and needs of personal loan. But most of the banks required the combinations of the documents listed below:-
- Personal Loan Application form
- Passport Sized Photograph
- Age or DOB Proof
- ID Proof
- Employee ID Card
- PAN Card
- Income Proof
- Bank Statement
- Residence Proof
- Office Address Proof
- Office Ownership
- Proof of continuity of business
- Signature Verification Proof
- A Cheque for Processing Fee
- Last 6 months Bank statement.
- Last 3 months of Salary Slip
- Latest ITR for the last 2 years
Here are the 5 Money Problems You Should Never Solve With a Personal Loan:-
- Paying for College or Other Educational Fee
If you are planning to do some small budget courses then start saving from your pocket money rather taking a personal loan at the last moment. But if you have to do some long-term courses then go for student loans not for the money personal loan because the personal loan might have higher interest rate than your required one.
- Planning a Vacation
Vacation is the best medium to refresh the mind; it gives immense pleasure to the mind and body. However, vacation usually cost more and it depends upon the destination and desired needs. So, nobody wants to go vacation on money personal loan as the loan amount may give stress to the mind and can spoil the vacation. Hence, you must avoid taking the personal loan against the vacation. There are other easy ways to manage the fund for the vacation and one of such is the recurring deposit, this saved money will help you to enjoy the vacation with friends and family.
Well, we don’t recommend to be the part of gambling but it’s legal in some countries and also it’s your personal choice. If you are involved or believe in this grey occupation i.e. gambling for doubling or tripling your money in short time then it’s not advisable to satisfy your grey habit by lending a personal loan. As it might lead you to the way of Bankruptcy and probably you won’t have sufficient amount to pay the loan also.
- Investing in Stock Market
It’s not an assured occupation to increase your investment amount. It have literally a dynamic graph to increase or decrease your money. If you are experienced in Stock Market or you have a godfather to guide you for better output from it, in that case also you need to think thrice before taking personal loan for the same. Else, if you are desperate in investing Stock Market without any experience then you should save some money from your regular earnings and then invest in that. Stock Market is a game of probability and if you lost the same, then your entire money will be gone. So, in this case, you won’t be able to even pay the interest rate of the loan amount. So, it is always recommended not to invest the personal loan money in the stock market.
- Home redesigned or to purchase small budget goods
To repair your kitchen, lawn, wall, hall or any part of home, you can wait for some time. Understand, it’s not an instant requirement nor it’s a top priority need to fulfil quickly. Likewise, you might have to purchase a gadget, electronic items or any other goods which don’t required a huge amount. Prioritize your requirements along with a required lump sum amount. Now, shorted it down with the smallest to highest amount and then to avoid taking personal loan to fulfil these requirements, you can start saving small amounts in different – different ways such as piggy bank, fixed deposit, recurring deposit, or you can look for other short-term saving plans.
Think twice before applying for a personal loan
To sum up, apply for the money personal loan only if you have some urgent requirements else
Make a habit of small savings regularly and then fulfil your requirements in coming days.