Instant Personal loans are unsecured loans that you can borrow for various purposes. It can be used for multiple things, including consolidating debts, home renovation, or planning a dream wedding. Personal loans can be obtained from a bank, credit union, or 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.

An instant personal loan is free of collateral, and there is no need to pledge on the asset guarantee to get personal loan approval. Here are the benefits and features of getting a personal loan:

• Quick Approval: Instant personal loans can be approved within minutes or hours, making them a convenient option for those who need funds quickly.
• No Collateral Required: Instant personal loans are unsecured loans, which means that no collateral is required. This makes them a good option for those who do not want to put their assets at risk.
• Flexibility: Instant personal loans can be used for a variety of purposes, such as paying off debts, covering unexpected expenses, or financing a vacation.
• Convenient Repayment Terms: Instant personal loans typically have flexible repayment terms, allowing borrowers to choose a repayment period that suits their financial situation.
• Low-Interest Rates: Some instant personal loans have low-interest rates, making them a more affordable option compared to other forms of borrowing.
• Access to Funds Anytime: Instant personal loans are available 24/7, allowing borrowers to access funds at any time they need them.
• No Prepayment Penalties: Many instant personal loans do not have prepayment penalties, which means that borrowers can pay off their loans earlier without incurring additional costs.

Overall, instant personal loans can be a convenient and affordable option for those who need quick access to funds for a variety of purposes. However, it is important to carefully consider the terms and conditions of the loan and to only borrow what you can afford to repay.

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.

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

Personal loans can be categorized into the following:

Personal Loans To Finance Wedding

Weddings in India are costly compared to other countries. It can even blow away all your savings. A wedding budget that involves all your savings is not a wise choice. A wedding loan can ease this problem and give you the chance to have the marriage of your dreams. Thus, planning a wedding is now easier than ever. Moreover, you can apply for a wedding loan either for the would-be bride/bridegroom or for a family member. And you can take loan amounts starting from ₹1,000 up to ₹25 Lakhs. The repayment tenure for this loan is between 3 months and 6 years.

Personal Loan To Get A Home Improvement.

Are you aware of what you can do if your old house is badly in need of repairs? The costs of renovating a house often deter people from doing so. Fortunately, an instant loan can help you fulfill your dreams, from remodeling your kitchen to increasing your house's durability and comfort while also increasing its market value. You can apply for a loan amount starting from ₹2 Lakhs and ₹40 Lakhs. The repayment tenure for a home renovation loan can go up to 30 years. Hence taking a Home Improvement Loan can help you fulfill all your needs.

Personal Loan To Finance Your Travel/Vacation.

A personal loan is an excellent option if you plan a vacation and want to pay your travel expenses without breaking the bank or affecting your monthly budget. Even though credit cards can also fulfill your needs, a holiday loan can make your travel plans easier and at a lower interest rate. Due to its convenience and economic appeal, Personal Loan for Travel is a viable alternative. The main feature is that the application process is simple and you can get your loan easily approved. Many banks offer you a travel loan of up to ₹40 Lakhs and the repayment tenure of the loan goes up to 5 to 6 years.

Overdraft Personal Loan

No one can predict what will happen tomorrow, but you need to prepare for the worst, don't you think? Having a personal loan enables you to have enough money in your account if there is an emergency to avoid running out of money. Compared to a traditional loan, this one comes with a higher interest rate, and you only pay interest when you use it.

Top-Up Personal Loan

Top-up loans are offered by the same lender from whom you have already taken out a loan. In a top-up loan, you need to repay it within the current term to borrow a certain amount of money over your existing loan.

Personal Loan For Consumer Durables

It is easy to get a consumer durable loan with no EMI. A durable consumer loan can be used to purchase phones, refrigerators, furniture, washing machines, microwaves, etc. An amount of the product can be divided into EMIs and repaid over a specified period. In some cases, there will be down payments or processing fees, while in others, there may not.

Personal Loan for Higher Education

Secured education loans are offered against collateral such as your degree certificate or a real estate property. But many lenders offer unsecured personal loans to help you finance your higher education. You can get a personal loan to pay your tuition fee, and residence fee and use it for any other academic purpose. Most banks will offer you a personal loan to cover expenses related to your education and the loan amounts to up to ₹20 Lakhs. The repayment tenure for a personal loan taken to use education can go up to 5 to 6 years.

Personal Loan for Business Development

It takes a lot of financial burdens to sustain your business in a competitive market. You must be aware of the current trends and your customer needs in order to stay in demand. In such situations, you can take a personal loan to finance your business requirements such as expanding your business, increasing your production capacity or even launching a new business. You can get a loan amount of up to Rs.20 lakhs and the tenure for loan repayment starts from 12 months to 60 months.

Personal Loan For Celebrations

Festival celebrations often bring more expenses that you have not planned for while budgeting. So, in order to celebrate your festival without worrying about your expenses, you can take a small personal loan. Many banks will offer you a personal loan for festivals up to ₹50,000.

Personal Loan For Computer/Mobile Phone

In this digital era, computers, and smartphones have become inseparable in our lives. So many banks and NBFCs started offering small personal loans to cover such specific needs of the borrowers.

Personal Loan For Medical Emergency

Medical emergencies do not come with a warning, and with the increase in the cost of medical treatments and hospital bills, you may not have enough liquid cash with you during the time of an emergency. In such situations, an instant personal loan to help you cover the medical emergency can change the situation around for you. f. This is more profound and easy to get. It would depend on your credit eligibility and creditworthiness, you can quickly get a personal loan for medical emergencies up to ₹ 25 lakhs for a tenure of up to 5 to 6 years. Medical emergencies do not come with a warning, and with the increase in the cost of medical treatments and hospital bills, you may not have enough liquid cash with you during the time of an emergency. In such situations, an instant personal loan to help you cover the medical emergency can change the situation around for you. f. This is more profound and easy to get. It would depend on your credit eligibility and creditworthiness, you can quickly get a personal loan for medical emergencies up to ₹ 25 lakhs for a tenure of up to 5 to 6 years.

Personal Loan For Agriculture

Banks offer personal loans to farmers to cover expenses related to farming and agricultural activities. These loans are usually offered at comparatively lower interest rates and have a flexible repayment tenor of up to 5 to 6 years.

Personal Loan For Debt Consolidation

Debt consolidation is where you avail of a new loan to repay your existing loans. You can take a personal loan at a low-interest rate to pay off another loan that has a higher rate of interest, for example, a credit card loan which usually has an interest rate of 40% to 45% p.a. Many banks and NBFCs would grant you a personal loan of an amount up to ₹25 Lakhs for debt consolidation. Further, down the blog, you can verify the interest rates against the loan amount and analyse where your requirement would fit the bill.

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

Here are the steps you can follow to apply for an instant personal loanonline:

1. Choose a lender: Research and compare various online lenders to find one that suits your needs and requirements.
2. Check eligibility criteria: Most lenders have specific eligibility criteria, such as minimum income, age, and credit score, that you need to meet to be eligible for a loan.
3. Fill out the loan application form: Most online lenders have a simple loan application form that you can fill out in a few minutes. You'll be asked to provide basic personal and financial information.
4. Submit supporting documents: You'll need to submit proof of identity, income, and address, among other things, as part of your loan application.
5. Receive loan approval: If your loan application is approved, you'll receive a loan offer with the loan amount, interest rate, and repayment terms.
6. Sign the loan agreement: Review the loan agreement carefully and make sure you understand the terms and conditions before you sign it.
7. Receive the loan disbursement: Once you sign the loan agreement, the loan amount will be disbursed to your bank account.

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 (miscalculation or data reading if entered incorrect) 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 your 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 that 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, it is an opportunity to enclose the loan deal with a lender who fits all your requirements and sees you as a fit for the loan amount requested.

Lenders will offer you instant personal loans without documents if you prove that you are a credible borrower. So, here are steps you can follow to get a personal loan even if you don’t have documents.

Repay your existing debts

You can increase your creditworthiness by repaying all your past-pending debts as early as possible. Doing so will improve your credit history, which will in turn improve your credit score.

Improve your credit score

A credit score typically represents the overall creditworthiness of an individual, and it ranges from 300 to 900. Where…. It also shows your ability to repay the loan amount without defaulting. Moreover, if you have a high credit score above 750, you will be known as a low-risk borrower. So, if you want to improve your score, you have to make timely repayments, repay your existing debts, keep your old accounts open, etc. And you must also check your credit score frequently to keep track of your financial transactions. You can also check your score using Buddy Score and get the whole credit report instantly.

Maintain your Debt-to-Income ratio

A Debt-to-Income ratio (DTI) indicates how well you are able to manage your current and past debts with your monthly income. This is the reason why lenders expect you to maintain your DTI ratio to be less than or equal to 50%. The lesser the ratio, the higher your repayment ability. Therefore, having a low Debt-to-Income ratio will make you a credible borrower.

Relationship with the lender

The lender will automatically trust you if you are an existing customer with good credit history. Since the lender already knows your financial status and credibility, the lender will offer you a loan even if you do not have any documents.

Sometimes, if you do not have important documents for income proof such as your salary slips, you can provide proof of 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 a salary slip as your income proof. However, the guarantor must also submit income proof when applying for a personal loan.

Use of Aadhaar & PAN cards! Banks and lending institutions have made it mandatory for KYC approvals in order to approve a personal loan for the term. 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:

High Credit Score

Lenders think twice before approving your loan application when you don't have a PAN card because they will not know your exact financial situation. Hence, it is best to have a high credit score to show your credibility. Usually, a score above 750 shows that you have a consistent repayment history and high creditworthiness. So if you have a low score, you can improve it by making timely payments, repaying all your past debts, and maintaining your credit utilization ratio to less than 30% of your credit limit. Moreover, you must review and check your credit report regularly and identify any potential errors when the transactional is not updated. Therefore, you can also check your score using Buddy Score and get your credit report instantly.

Low Debt-to-Income ratio

Debt-to-Income ratio (DTI) shows your capability to handle both your present and past debts with your current monthly income. So, if you don't have a PAN Card, you can show that you are credible and have the ability to repay the loan by having a low debt-to-income ratio of less than or equal to 50%.

Good Relationship with the lender

Sometimes, lenders trust you and will be ready to offer personal loans even if you don't have a PAN card when you are an existing customer. Moreover, if you have a good credit score, it will become an added benefit to you.

Submit your bank statement

You can submit your bank statement as it will help lenders to track your financial transactions based on which they will approve your loan. It will also give them a view of your credits and debits, bill payments, and monthly income. Therefore, if you don't have a PAN card, it is better to submit your bank statement or salary slip to help the lenders evaluate your credit eligibility.

Submit Aadhar Card

You have to submit your Aadhar card as an alternative to your PAN card as both are linked and are the base document for your KYC verification.

Do's	Don'ts
Do thorough research before you apply for a personal loan	Do not sign your loan agreement documents without reading the terms and conditions.
Do read your filled application form carefully	Do not make multiple inquiries regarding loans from different banks
Save your money simultaneously when you are repaying your loan	Do not take a personal loan without any purpose
Repay your loan on time installment promptly.	Do not be in a hurry to end your loan comparison process
Do check your credit score thoroughly and make sure it is above 750	Do not forget to repay your loan installments on time
Do apply for an affordable loan amount	Do not accept bad loan products

• 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.

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

Online Mode:

1. First, log in to the official website of the bank where you have applied for a personal loan.
2. Enter the application number or reference number which you receive after applying for the loan.
3. On the other hand, if you have applied for a personal loan using a third-party aggregator website such as Buddy Loan, you can just log in to the web portal and track the status of your application easily.

Offline Mode:

1. If you want to check the status of your loan application form offline, you have to visit the branch office of your lender.
2. On the other hand, you can also contact your lender through their helpline or customer care number.
3. For both these methods, you have to provide a few basic information such as your name and application number or reference number.

If you want to track your personal loan statement, you can contact your lender either online or offline. Through online mode, you can just log in to the official website using your online credentials and enter your loan account number. After tracking your account, you can request a statement which will be either sent to your registered email ID or sent in the form of a PDF file that you can download. And for the offline mode: you can visit the branch of your lender from where you have taken the loan and place a request for a loan statement. In addition to that, you can also raise a request for your personal loan statement using phone banking as well.

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.

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 ensure that you are capable of repaying the loan. So having a stable income becomes an added benefit in getting a loan at low-interest rates.

Type of Employment and organisation:

If you work in a government organization/ MNC/ reputed private sector, you can easily get personal loans at lower interest rates. The reason is that 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.

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.

It's important to choose a repayment method that works best for you and to keep up with your monthly payments to avoid late fees and potential damage to your credit score. There are several ways to repay a personal loan, including

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 that payment history holds for 35% of your cred1it score. Hence, it has a major impact on your score.

Consider the list of factors 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 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: 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.

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 would be considered as prepayment or foreclosure.

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 a 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, NEFT, or other means, the lender will give you the NDC and will either send it to your address or 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 show 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 that 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 score to ensure there are no differences in the score.

Why would Buddy Loan add value to your credit history? 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.

India's best personal loan app 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

1. Full online process

2. Trustworthy loan providers

3. Low-interest rate

4. Flexible loan repayment

5. User-friendly approach

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

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.

The following are some reasons why you should apply for a personal loan at Buddy Loan:

1. Buddy Loan offers 24/7 customer service to all its customers. You can frequently ask questions from our customer service team as they are always available during business hours and will try to respond as quickly as possible.
2. The process for approval of loans in Buddy Loan is fast and quick and it requires minimal documentation.
3. The needs of our customers are our top priority. Our services are tailored to fit your needs. To provide you with an individualized experience, we handpick the best offers based on your profile.
4. You can compare the different offers from various lenders to make the right choice. It is always good to find the best lender based on your eligibility requirements with our assistance.
5. You can even choose the lender of your choice with the help of a personalized relationship lender from Buddy Loan.
6. Buddy Loan even helps you to build up your credibility.
7. The Buddy Loan proactive and user-friendly support team will help you cross the risk of confusion, debt risk, and defaults.
8. Buddy Loan gives transparency to you and 0 complexity in the loan process.
9. We offer flexible repayment options with six months to 5 years of the loan tenure.
10. We have a fast and efficient customer service team that is ready to answer all your questions about loan eligibility, procedures, offers, documentation, and repayment options.
11. With Buddy Loan, you can get a loan amount up to 15 lakhs only on your aadhaar and PAN card

In Buddy Loan, you can apply for a loan with 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 in all your details in the application form then the customer needs to fill in the desired loan amount, tenure 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.

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.

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.

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.

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 loan approved.

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.

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.

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.

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.

Instant 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.

With low-interest rates and instant disbursal, you can avail of instant personal loans through Buddy Loan and fulfill your sudden financial needs. So why wait? Apply for a Personal Loan NOW!

Having any queries? Do reach us at info@buddyloan.com