How Does Personal Loan WorkA personal loan works similar to other types of loans where you apply for a loan, go through the eligibility check, submit mandatory documents, and the loan gets sanctioned. If you are eligible, the funds will get transferred directly into your bank account.
A personal loan is a fixed loan where the interest rate remains constant, irrespective of the market fluctuations. Personal loans offer low interest rates to borrowers holding a good credit score. Payment of timely EMIs and outstanding credit card payments can increase your credit score, giving an advantage during loan acquisition.
How do Different Types of Personal Loan Work?
Personal loans are unsecured loans as it does not require any kinds of security/collateralagainst the loan. The following are different types of personal loans that work to fulfil specific purposes:
- Wedding Loan supports the essential and extravagant expenses required to make the wedding a memorable affair. People wish to spend lavishly on their big day, and a wedding loan can work wonders for the couple to make their special day complete.
- Vacation Loan works when it is about travel and vacation. It is ideal for financing family trips, solo trips, honeymooning trips, or around the world trip with your gang. Choose your destination, get the budget in hand, and apply for a vacation loan to fulfil your dream of going around unique places in the world.
- Medical Loan is a saviour in tough times where health is at stake. It works just in time to clear costly medical bills for different treatments, medications, and surgeries.Debt consolidation Loan works towards reducing the debts piling up due to unpaid bills. If you have credit card debts with high-interest rates, a personal loan of this type will repay all your debts and lessen the financial burden. Clear all outstanding debts with a debt consolidation loan.
- Home Renovation Loan helps you with the necessary finance to renovate and fix emergency areas in the house.
- Education loan works towards securing students’ future in every way. Education fees and travel in foreign universities are also covered under education loan. Getting monetary support for education at the right age can build a bright future for the applicants.
- Agricultural loans offer necessary finance to the farmers to buy commerciall vehicles and products such as tractors, fertilizers, seeds, etc. To encourage farmers, the RBI has declared an agricultural loan requires no collateral for loan processing.
Whether online or offline, documents necessary for a personal loan are mainly the KYC details - Aadhar card, Pan Card, and Photo ID, salary details if employed, and six months bank statements as income proof.
Nowadays, loan application via online loan apps requires paperless documents that are verified in real-time and speed up the loan sanction process. Simply Cash is a digital personal loan app that facilitates instant loan approval with minimal paperless documentation.
Q.1 What is a Personal Loan?
A: A personal loan is an instant loan useful to meet urgent cash needs. It is best to avail a personal loan to manage emergency financial requirements.
Q.2 What can a Personal Loan be used for?
A: A personal loan can be used to suffice monetary issues during unpredictable situations. There are a variety of personal loans used to deal with different emergencies. For instance, one can use a medical loan for treating critical ailments, an education loan for studying abroad ,a consumer-durable loan for buying high-end electronic products, etc.
Q.3 How much credit score is required to get a Personal Loan?
A: A credit score generally ranges between 0-900. Different lenders have different eligibility criteria.
Q.4 Why should you choose the SimplyCash personal loan?
A: Simply Cash is a secured personal loan app available to fulfil your instant cash requirements up to 1.5lakh. Besides, the loan application procedure is hassle-free with paperless documentation.