Perfect Details On Personal Loans From Private Finance

Personal loans are one of the most acceptable and widely used forms. It is easily available. There are multiple uses for personal loans. It was previously offered by banks only. Today there is an option to take a personal loan from private finance.

A personal loan from private finance comes with numerous questions. Knowing the benefits and eligibility criteria is important. Read through this guide to find answers to all your questions and plan accordingly.

What is private finance?

Private finance providers are non-banking institutions. It performs all the monetary functions like a bank. It offers personal and other loans but is not a member of the banking or financial industry. It works in collaboration with NBFCs or banks. These follow all the guidelines stated by the government. 

The process of loan disbursal, followed by private finance, is comparatively quicker, and the eligibility criteria are also simpler. Also, these institutions provide loans to people with low credit scores. Hence, securing a personal loan from private finance is quicker and simpler.

But there are various aspects to know before applying. 

Eligibility criteria for a personal loan from private finance

Knowing the eligibility criteria for a personal loan from private finance is important. The criteria are very simple and straightforward. The things that would need are:

• 21 to 57 years is the required age.
• The minimum salary/income needed is INR 15000 PM. It may vary.
• Have a consistent income source.
• A minimum of 6 months of employment is a must.
• A good CIBIL score, usually above 600.

Documents required for a personal loan from private finance

The document required for personal loans from private finance is simple. The basic documents required are the same. The additional documents are based on your profile. The following documents for the personal loan from private finance are a must.

The main set of documents you should submit is:

1. Identity Proof – Submit anyone from below:

• Passport
• Driving license 
• Aadhar card
• Voter ID

2. Address Proof – Submit anyone from below:

• Passport
• Driving license 
• Aadhar card
• Voter ID
• Registered Leave and Lease Agreement
• Utility bills like Telephone Bill / Electricity Bill. It should be at most 3 months old.

3. Latest passport-size photograph, as needed

Additional documents for salaried

You will be required to submit the income proof like: 

• Latest or last 1 month’s salary slip
• Last 3 month’s bank statement

Additional documents for self-employed

If you are self-employed, you should submit the following documents:

• Balance sheet or P&L statement for the last 2 years.
• Income tax return for previous 2 years.
• Proof of business.
• Income tax challans.

Conditions for co-applicant

• You can use a co-applicant if you wish to apply for a higher loan. The income will be clubbed for loan sanction.
• Co-applicant can be a spouse.
• All the documents mentioned above need to be submitted for co-applicant as well.

Benefits of personal loan from private finance

There are multiple benefits to personal loans from private finance. The top ones include:

• Fast processing

You can get a personal loan from private finance with easy eligibility criteria. Approval takes around a day. It can be even sooner based on the case. This way, you can get your loan quickly to meet your needs.

• Online processing available

Most private finance institutions offer online processing, and you can apply for a loan from their application and website. Once you submit all documents for personal loans from private finance online, your application process ends.

• Less strict credit score rules

With a low credit score, you can still apply for a personal loan from private finance. You can still apply for the loan even if your credit score exceeds 500. The interest rate might be high, but the chances of approval are high too.

• Greater acceptability

A personal loan from private finance is available for both salaried and self-employed. You can easily apply for a loan if you want to expand your small business. 

• Competitive rates

The interest rate changes by private finance start from 11% per annum. The rate will depend on their internal criteria, which makes their rates flexible.

• Quick disbursal

A personal loan from private finance offers quick disbursal. Once the approval is received, the amount is usually disbursed within minutes. 

Is a personal loan from private finance safe?

This is quite a common question when applying for a personal loan from private finance. The platforms follow the entire guidelines as followed by banks. At the same time, the process is comparatively simpler and quicker. Transparency is one of the biggest benefits of personal loans from private finance. Even though the rate is comparatively high for some, the processing is very fast. 

Yes, taking a personal loan from private finance is completely safe and legal. It is easy and quick. The online process saves your efforts, time, and money. The online process with no documentation and quick disbursal is a key reason to apply with private finance.

Is a personal loan from private finance right for you?

A personal loan from private finance is a great way to meet immediate financial needs. But you should know if you need a personal loan or not. To find out, follow the tips below:

• Apply for a personal loan when you have immediate financial need.
• When you are looking to pay off high debts.
• When there are necessary but unforeseen expenses.
• If you are willing for business expansion or renovation but need a low rate of interest loan.
• If you are looking to finance large but essential expenses.

Conclusion

Financial need is one of the primary reasons to apply for a personal loan. There are multiple options to apply for a personal loan. Ultimately, the lender would need you to repay the loan you have taken.

A personal loan from private finance is a good and safe option. It is available online, time-savvy, and quick. Also, the eligibility criteria and credit score needs are simpler for it. Compare the rates offered by multiple lenders to get the best deal.

The best way to apply for a personal loan from private finance is to start checking your eligibility online. You can visit Piramal Finance to gain information on a personal loan. Also, you can connect with customer support and get a quote.