Personal loans are sums of money that can be borrowed for various purposes. It can be used for consolidating debts, home renovation, or for planning a dream wedding. Personal loans can be obtained from a bank, credit union, or an online lender.

Typically, you must repay the borrowed money with interest over time, and there may also be fees associated with the personal loans.

Personal loans can be used for just about anything. However, sometimes some lenders want to know what you will do with the money they lend you, but as long as you've borrowed it for a responsible and legal reason, you can do what you want with it. The approval rate of personal loans has been based on the individual's credit history.

Personal loans can be used for just about anything. However, sometimes some lenders want to know what you will do with the money they lend you, but as long as you've borrowed it for a responsible and legal reason, you can do what you want with it. The approval rate of personal loans has been based on the individual's credit history.

People can have any kind of financial emergency at any time in today's world. Many people, however, don't know how to handle them. Although you may think you can deal with such situations with your savings, you never know when an emergency may arise and how expensive it may be. Hence, at the time of emergency, applying for instant personal loans can be a wise decision since they come unsecured and at a low interest rate.

An Instant personal loan online via Buddy Loan one of the easiest ways to apply for funds and to meet your financial requirements on time. It is easy to apply for a Personal loan online get it approved instantly in this digital age.

If you apply for a personal loan from Buddy Loan, you might get multiple benefits like instant funds, attractive rates, and easy EMIs. Personal loans don't need any collateral, pledges, or heavy documentation. Thus, no more lengthy applications!

There are ample benefits in store for the applicants who avail an instant personal loan via Buddy Loan.

A personal loan via Buddy Loan is free of collateral, and there is no need to pledge on the asset guarantee to get an personal loan instant approval.

Personal loans can be categorized into the following:

Personal loans are offered by nearly all banks and NBFCs, though eligibility requirements may vary. Depending on the bank and the lending company,personal loan eligibility criteria may differ. Still, specific criteria apply to all financial institutions.

For salaried and self-employed individuals, you need to satisfy the following criteria to be approved for the online loan process:

1. You must be a citizen of India.
2. Your age must be between 18 to 60 years.
3. You should have a minimum of two years of employment with your present organization for salary purposes
4. Your monthly income should be minimum of Rs.15,000
5. If you are self-employed, you should have minimum of two to three years in the profession/business you have now
6. You should have a credit score of at least 650

The following are the most common documents required for personal loan online approval salaried and self-employed individuals:

1. List of Documents Required for Salaried Employees

Proof of photo identity (Any one)	Passport Voter’s ID PAN Card Driving License Aadhar Card
Proof of Residence (Any one)	Passport Aadhar Card Utility Bill Ration Card Driving License
Proof of Ownership of Residence (Any one)	Property documents Electricity bill Maintenance bill
Proof of Income	Salary slips for the last three months along with Form 16 Bank statement for the previous six months where the salary has been credited
Proof of Job Continuity (Any one)	Employment certificate from the current employer Certificate of experience (relieving or appointment letter from the previous employer along with job certificate) Appointment letter from the current employer (if employment period exceeds two years)
Proof of Investment (if any)	Fixed assets, shares, fixed deposit, etc
Photograph	One passport size color photograph

2. List of Documents Required for Self-Employed Individuals

Proof of photo identity (Any one)	Passport Voter’s ID PAN Card Driving License
Proof of Residence (Any one)	Passport Aadhar Card Utility Bill Ration Card
Proof of Office Address (Any one)	Property documents Utility bill Maintenance bill
Proof of Office Ownership (Any one)	Property documents Utility bill Electricity bill
Proof of Business Existence (Any one)	Tax registration copy Company registration license Shop establishment proof
Proof of Income	Income tax returns for the previous two years inclusive of Computation of Income, audit report, balance sheet, profit and loss account, etc.
Bank Statement	Savings and current bank statement for the past one year
Proof of Investment (if any)	Investments such as fixed assets, fixed deposits, and shares
Photograph	One passport size color photograph

3. List of Documents Required for NRI Applicants

Proof of photo identity	Copy of your passport Copy of your visa
Proof of Employment	Appointment letter Job contract Identity/Labour card (if applicable) Official email ID or the HR’s email ID
Proof of Income	Bank statements of the last 6 months Salary slips or salary certificate
Photograph	Recent passport-size photographs

4. List of Documents Required for Pensioners

Proof of Identity/Age (Any one)	Ration card PAN card Voter ID card Passport Driving licence School leaving certificate Birth certificate
Proof of Address (Any one)	Aadhaar card Passport Ration card Utility bills Driving licence
Proof of Income (Any one)	Bank pass book Bank statements of the last 6 months Form 16 Income tax returns Copy of pension payment order
Photograph	Recent passport-size photographs

The EMI is the most critical factor when you consider a personal loan. When you decide which loan to take, you should consider whether or not the EMI matches your monthly budget. You can use an EMI calculator to figure this out. The following are the results of using a loan calculator:

• Monthly Repayments - The amount you will pay per month in EMI
• Total interest payable - Your total interest owed
• Payment total - The amount which is a combination of principal and interest

It's instant, seamless, and paperless to avail a loan up to Rs. 15 lakhs. What's more? Get competitive interest rates, flexible loan tenures, and manageable loan repayment options. You can apply for a quick loan online and your information remains highly confidential.

1. Fill in your personal, financial, and employment details.
2. Submit the required documents online, proof of identity, and proof of income.
3. Select loan amount and tenure that you need to get instant online approval.
4. Receive the loan amount in your bank account within 48 hours.

Buddy loan is India's fastest-growing instant loan app built with the latest technology and features. It helps you experience a stress-free journey when applying for a loan to fulfill all your financial requirements. It is one of the biggest loan aggregators to help turn your dream into reality. You can download the app from Google Play Store and use this app to get an instant personal loan online for various requirements such as medical emergencies, travel to your dream vacation, making wedding plans, or growing your business.

Being India's best personal loan app that offers instant loans from INR 10,000 to INR 15 lakhs with an interest rate starting from 11.99% per annum. It has flexible tenure for loan repayment, starting from 12 months to 5 years. And if you are looking for immediate funds, then this might be the right platform for you.

Some of the reasons why Buddy Loan is the best choice are;

• The complete online process
• Trustworthy loan providers
• Low interest personal loans
• transparency
• Flexible repayment
• User-friendly approach

Moreover, you can apply for an unsecured personal loan and access the loan amount as per your wish anytime, anywhere.

The Buddy loan is the perfect one-stop solution for all of your financial worries. Here,you will be able to get a loan that is hassle-free and quick, and you might also get competitive repayment and rate of interest. Additionally, we compare what different banks can offer you and help you in making your final decision.

In Buddy Loan, you can apply for a loan with the minimal documentation and the loan application process is easy as they involve these simple steps:

Step-1: First, you just need to download the Buddy Loan app from the google play store, you can even visit the website to compare and learn more about the features.

Step-2: After you download the app fill all your details in the application form then the customer needs to fill the desired loan amount, tenures months and phone number. After that, you will get an option to apply for a loan.

Step-3: After that, you will get an option to apply for a loan. Then you have to fill out the eligibility form, which includes filling in the following details:

• Email Address
• Employment Type
• Company type
• Your Industry type
• Current Company Name
• Enter Company address
• Year of employment
• Monthly in-hand salary
• Mode of Salary
• PAN Card details
• Full Name (As per PAN Card)
• Current Residence Pin code
• Mobile Number

Step-4: After that, you will get an option to select from the multiple offer(s). Based on the information you provided above, you will be given a list of potential lenders. Depending on your profile, you may receive one or more offers. You are eligible to choose the lenders from the list.

Be sure to keep these points in mind when choosing a lender:

• Interest rate offered
• Loan amount
• Loan Tenure

Step-5: Now, you can complete the application process. Hence, after submitting your application, our representative will follow up with you to cross-verify the details before sending the application to the lender.

Step-6: Now you should patiently wait for the loan amount to be disbursed in your bank account.

Lenders have certain eligibility criteria they expect you to fulfill before they process your application. These may vary from one lender to another. Some of the general eligibility criteria are as follows:

After you have taken a personal loan, you have to repay the debt through EMIs until your loan tenure period. However, if you want to pay off your debt before the end of your tenure for loan repayment, it is known as prepayment or foreclosure.

Types of Prepayment:

There are two types of prepayment for personal loans namely: full prepayment and part prepayment or part payment.

• Credit Clean-up:

One of the major factors to consider when you are applying for a personal loan is your credit score. And when you have a high credit score, you can easily get a personal loan. So if your credit score is low, first check your credit report and see if there are any errors. Sometimes, simple errors can have an adverse effect on your credit scores, and if you find any errors, you must immediately report them to the credit bureau.

• Balancing your income and debts:

Lenders usually ask for proof of your income when you apply for personal loans in order to determine your debt-to-income ratio. And you must maintain your debt-to-income ratio to less than or equal to 50%. So bring back the balance in your ratio, try selling some of your liquid assets such as your stocks or earn more through a part-time job to increase your overall income. This way, you can balance your debt-to-income ratio and increase the chances of getting a loan.

• Consider Co-signers/Guarantors:

If you find it hard to get a personal loan on your own, you can apply by adding a co-signer or guarantor. However, your guarantor must also have a good credit score. The reason is because the lender will want to make sure that your co-signer or guarantor has the ability to repay the loan. However, they will also become liable to repay the loan if you are unable to do so.

• Limit Your Borrowing:

It can be a little risky to apply for a personal loan more than you require to meet your financial requirements. So make sure that you plan and budget how much you need and apply only for that loan amount.

• Choose the Right Lender:

Each and every lender has their own eligibility criteria and requirements. So, when you are planning to apply for a personal loan, choose a lender for which you meet the required eligibility criteria and apply accordingly.

There are many factors that decide the approval of a personal loan application. So when you apply for a loan, you must ensure that you meet all the requirements so that you can get your loan approved quickly. These criterias mainly include the age of the applicant, his or her income, credit score, the status of employment, and so on.

You can check your personal loan using two modes: online and offline through which you can track your loan application status.

Here are a few essential things you have to keep in mind when planning to apply for a personal loan:

1. Find the need for your loan
2. Do a thorough research to get the best interest rate
3. Check your credit history and your credit score.
4. Check if all your documents are error free.
5. Choose your loan repayment tenure only after you determine your repayment ability.
6. Choose an interest rate that you can afford
7. Choose the loan amount as per your requirement
8. Check your EMIs properly
9. Compare the processing fee with various lenders before choosing the loan.
10. Choose whether you want a fixed or variable interest rate according to your preference.

If you have paid off your entire personal loan (either repaid or foreclosed), you might think that your obligation or responsibility towards the loan is over. However, there are few things that you must do after you pay off your personal loan.

• No Dues Certificate (NDC): Usually, lenders issue the No Dues Certificate (NDC) once you pay off all the debt. So it is one of the most essential documents that you must collect immediately after you repay your loan. This certificate shows the repayment that you have made throughout your loan tenure. Usually, you can get this document instantly if you are paying off the final loan amount through hard cash. And if you are paying using a cheque or NEFT or other means, the lender will give you the NDC and will either send it to your address or will ask you to collect it in person from the branch office of the lender.
• Statement of Account (SoA): The Statement of Account or SoA, and your NDC shows that you have completed paying debts and have paid on time. And this is an optional document given by certain lenders. However, you must also check for any sorts of discrepancies in your credit score. And if you find anything wrong, you can use this SoA to make necessary changes to it.
• Collection of unused cheques: If you have any cheque leaves which you have not used, you can collect those as well. Therefore, collecting your No Dues Certificate and the unused cheque leaves, usually, marks the end of your closure for your loan.
• Check your credit score after you close the loan: This is just an option and is not compulsory to check your credit score after the closing process ends. However, it is suggested that you check your credit scoreto ensure there are no differences in the score.

Personal loan disbursal is the process where the lender transfers the loan amount to your bank account. The loan disbursal is done only after you submit relevant documents and complete the verification process. Lenders disburse your personal loan in a few seconds, while others take a few hours to a few days to disburse the loan amount following approval.

Sometimes, if you do not have important documents for income proof such as your salary slips, you can provide proof for alternate sources of income to show that you have other sources to repay the loan amount even without a salary slip.

Here are a few ways to get a loan without a salary slip

Submit Form 16:If you don’t have a salary slip, you must provide the latest Form 16 as your proof of income.

Submit alternate source of income:Submit proof for alternate sources of income such as your business income, house rent income, bank balance, the income of your parents or spouse, etc. It will show that you have other sources of income to repay your loan amount without defaulting.

Submit Collateral:As personal loans are unsecured, you can try to speak with your lender to offer the loan amount with your collateral when you do not have a salary slip or income proof.

Get a Guarantor:You can get a guarantor (also called a co-applicant) who has a high credit score to apply for a personal loan when you do not have salary slip as your income proof. However, the guarantor must also submit their income proof when applying for personal loan.

Banks and lending institutions have set Aadhar cards and PAN cards as mandatory documents for KYC when you want to avail of an instant personal loan. So getting a personal loan without a PAN card can be challenging, but it is still possible. Here are tips that you can follow till you get your new PAN card:

Once you get your personal loan, you must make sure that you repay your debts on time to avoid affecting your credit score in a negative way. The reason is because payment history holds for 35% of your credit score. Hence, it has a major impact on your score

Here is a list of factors you must consider before applying for an instant personal loan.

Have a clear view of your purpose to take a loan: Before you apply for a personal loan, know why you want to get a loan and how much you require. Do have a clear plan and budget the amount that you need. By doing this, you will know if you can repay your loan amount smoothly.

Research: Do a thorough research on different banks and lending institutions that offer loans. Compare the interest rates offered by various lenders and calculate the EMI beforehand. This way, you can choose the lender that gives you personal loans at comparatively lower interest rates.

Repay on time: Since payment history has a major impact on your credit score, you have to ensure that you repay your EMIs on time. Also, you can set reminders to repay your loan on time without defaulting.

Consolidate your debts: Consolidate your debts: Repaying your past debts will increase your credit score significantly. So to do this, you can take a personal loan and repay your past debts using this loan amount. This way, your creditworthiness will improve, which will, in turn, increase your credit score.

• Do not sign your loan agreement form without reading the "Terms and Conditions" fully.
• Calculate the EMI you have to pay before applying for a personal loan to know if you can repay your loan on time.
• Don’t submit multiple loan applications to numerous lenders at once.
• Avoid taking loan amounts more than required.

1. Credit Score: Check your score using Buddy Score and maintain it above 750. You must also review your credit report once a year regularly to identify any potential errors and rectify them at the earliest.
2. Eligibility Criteria: Check if you meet the lending institution you are applying for eligibility criteria.
3. Documents: Keep all the documents ready for KYC verification, such as Aadhar Card, PAN Card, Passport, and Bank statements.
4. Fill out the loan application form with accurate personal and professional details for background verification.

1. Credit Score:Whenever you apply for a personal loan, the lenders will first check your credit score to find your creditworthiness. And if you have a score above 750, it shows that you are a highly credible borrower with the ability to repay your loan on time. Hence, you can get personal loans at comparatively lower interest rates. And also, remember to check your credit score frequently using Buddy Score.
2. Monthly Income: Since you can get a personal loan without any collateral, the risk that lenders have is higher compared to secured loans. Hence, they want you to have a stable income to assure that you are capable of repaying the loan. So having a stable income becomes an added benefit in getting the loan at low-interest rates.
3. Type of Employment and organization: If you work in a government organization/ MNC/ reputed private sector, you can easily get personal loans at lower interest rates. The reason is because lenders perceive you to have a good job with a stable income; hence they will be ready to offer you a personal loan at low-interest rates.
4. Relationship with your lender: If you are already an existing customer with a good repayment track, lenders will trust you and will be ready to offer loans at low-interest rates. And, they may also select you for pre-approved loans without any documents at low rates.

1.Do I Need a Personal Loan?

Give yourself a moment and think if you actually require a personal loan. If you are clear about the purpose of getting a loan, you can save yourself from borrowing more than required and getting into an unnecessary debt burden.

2.Will I Qualify?

Once you have decided to avail of a personal loan, you have to think about the chances of your loan application getting approved. So before you plan to apply for a personal loan, make sure you have a clear picture of your financial status and eligibility. Check if you have a good credit score and have a good monthly income. If you do not have a high credit score or don’t meet the required eligibility criteria, wait for some time before you apply for a personal loan. The reason is that a rejected loan application will be recorded in your credit report which will in turn have a negative impact on your credit score.

3. How Much Loan Amount will I Get?

Lenders usually offer personal loans that range between 50% and 60% of your annual income.

4. How Much Can I Afford to Repay My Personal Loan?

It is necessary to know how much loan you can afford to repay. Which is also called knowing your repayment ability. So here are a few ways you can check the affordability of your personal loan:

• Analyse your monthly income flow
• Find out how much you can dedicate to cover repayments on a new debt
• Find out if there is any cash left with you after you pay your monthly bills and other expenses
• Know where you can cut unnecessary costs and save money to add to the payment of monthly instalment

5. What All Documents do I Need?

When you apply for a personal loan, the lender will usually ask you to submit your documents to verify your identity and your monthly income flow.

• Identity proof: Aadhaar Card, Voter ID Card, Passport, Driving License
• Address proof:Utility Bills, Aadhaar Card, Passport, Ration Card
• Income proof:Bank account statement, salary slips, form 16, ITR

6. Can I Afford the Interest Rate?

Most banks and lending institutions offer personal loans with interest rates starting at 10.25% per annum. The interest rate depends on many factors such as your credit score, age, employer, repayment ability, etc. So, to know if you can afford the interest rate, it is important to have an estimate of your EMIs and you can calculate the EMIs before applying for a personal loan.

7. What Are the Other Charges I Should Know about?

Here are a few additional charges that will be applied on a personal loan:

• Processing fees: When you plan to take a personal loan, compare the processing fees charged by different banks. While some lending banks charge a zero processing fee upfront, other lending banks charge anything from 0.25% to 3.03% of the loan amount.
• Late payment fees: Banks can also charge late payment fees if you miss out or pay late in EMI payments. Most banks and lending institutions charge up to 2% per month as a penalty for late payment, however other charges may also apply if your post-dated cheque for the EMI payment is returned.
• Prepayment fee/Part- payment fee: Majority of the lenders offer the option of prepaying your loan. However, some lenders allow prepayment only after a fixed lock-in period of 12 months. You can also make a part- payment on your loan if your lender allows.

Here are a few tips you can follow to get your personal loan approved instantly.

1. Eligibility criteria: The eligibility criteria, such as minimum age, nationality, monthly income, etc., varies from bank to bank. So if you do not meet the requirements for eligibility, your loan application might get rejected. Therefore, before you apply for a personal loan, check if you satisfy all the eligibility criteria mentioned.
2. Valid Documents: Have all the required documents, such as Aadhar Card, PAN Card, bank statements, etc., ready for your KYC and income verification. So if you don't submit any of the required documents, lenders may not approve your loan.
3. Credit Score: Since banks offer personal loans without any collateral, lenders first check your credit score to determine your credibility before lending you money. So you must maintain a score of above 750 to get your instant loan approval.
4. Monthly Income: The lenders want you to have a stable income to know you can repay the loan on time. So you must either be salaried or self-employed with a minimum monthly payment of INR 20,000 to apply for a personal loan.
5. Calculate the EMI: You have to repay your loan amount through EMI. So, calculate the EMI that you have to pay beforehand and plan your repayment accordingly. This way, it will help you plan your loan budget according to your income.
6. Other charges: Banks and other lending institutions include additional charges like processing fees, prepayment, and late payment charges. Therefore, check with your lenders about additional amounts to have a clear picture of your actual expenditure.
7. Interest Rates: Before applying for a personal loan, do complete research on the interest rates provided by various lenders to ensure you get the loan at low-interest rates. It will help you make your repayment on time and increase your creditworthiness.

You can get tax benefits on your personal loan if you use it in these three following situations.

1.When You Take Personal Loans For Business Needs

You can take a personal loan to fulfill your business requirements, such as expanding your business or launching your startup. So the interest on your loan amount will become a liability for your business. Hence, the interest you pay will be taken as an expense which will be deducted from the net profit of your business. Therefore, this means that the entire interest that you have to pay will be tax-deductible if it is used for business.

2.When You Take Personal Loan for Renovating Your Home

According to Section 24 of the Income Tax Act, entitled "Deductions from Income From House Property," you can get tax deductions on income which comes from house property. So the interest you pay for the money taken using a personal loan can be deducted from the net taxable income from your residential property. However, this will apply only if you use the loan money for purchasing, constructing, or renovating the house. Moreover, you have to submit the required documents to mention the usage of the cash taken from the personal loan. And you can claim tax deduction of up to ₹ 2 Lakhs on the interest amount of your personal loan if you occupy the house.

3.When You Take A Personal Loan For Purchasing Assets

You cannot claim an instant tax deduction if you use your personal loan to purchase jewelry, shares, or other non-residential assets. However, the interest you pay will be added to the total cost of purchasing the asset. Therefore, if you sell the asset, the interest will be deducted from the capital profit and cut as a part of the cost of acquisition which will ultimately reduce the taxable income.

1. Personal Loans are not taxable as the loan amount is not taken as an income.
2. To qualify for a tax deduction on personal loans, you must submit proof of income tax to substantiate your claim with an auditor's certificate.
3. To claim the tax benefits on a personal loan, you must provide all your important documents such as sanction letters, expense vouchers, and bank or auditor's reports.

Personal loans are a great option for people who don’t have enough money to pay off their bills. They can be used to cover unexpected expenses and make payments on your credit cards, home equity lines of credit, student loans, or other types of debt. The interest rates on personal loans vary depending on the lender. However, most lenders offer rates that are lower than those offered by banks and credit unions.

Personal loans are also great for borrowers with bad credit scores.A bad credit score is a number that shows how much you’re likely to borrow from lenders based on your past financial history and current situation. If you have a poor credit score, it means that you may not qualify for many types of loan programs like personal loans.