How Personal Loans in Amritsar Can Help You Get Ahead Financially

Personal Loan in Amritsar

Personal Loan in Amritsar

Amritsar is a significant culture, transport, and economic center in Punjab. Located near the border of Pakistan, the city is famous worldwide for the Golden Temple, also known as Harmandir Sahib Gurudwara – the holiest Gurdwara. Sikhs from all over the world come to Amritsar for pilgrimage. Thus, It is nicknamed the Holy City.

It seems like you need money to make money in today’s world, and it cannot be easy if you don’t have the funds to get started. Hence, to meet your expenses in Amritsar, you can get personal loan from a bank or other financial institution and quickly get ahead. However, it’s essential to understand how personal loans work before you take out one. You can easily avail personal loan in Amritsar via Buddy Loan, the best loan aggregator. This article will help you to know how personal loans in Amritsar can help you cope with your financial troubles and provide tips on choosing the better options for your needs.

Personal Loan in Amritsar

Personal loans are life savers when you require urgent finances. As an unsecured loan, it provides financial aid to the customers with better interest rates and flexible repayment tenure. Personal loans are typically used for major expenses such as consolidating debt, financing a home renovation, paying medical bills, etc. Whatever your reason, shopping around to find the best deal before applying for a loan is essential. As you don’t have to put up any collateral, it gives more access to anyone.

Personal loans are an excellent option for those who need financial assistance but do not have the collateral to qualify for a secured loan. Rather than proceeding with high-interest credit cards, you can cover your needs with a personal loan. Mainly, personal loans are used to consolidate your high-interest debt into one monthly payment with a lower interest rate. It will eventually save you money and help you get out of debt faster. You can access a personal loan when you need them for any unexpected expenses.

Eligibility Criteria

Particulars Description
Nationality Indian
Age 21 to 60
Employment Status Employed or Self-Employed
Minimum Income INR 20,000 per month
Work Experience Min 1 year completed
Credit Score Above 750

Documents required

For Salaried Employee:

Particulars Documents required
Proof of Identity Aadhar Card, PAN Card, Driving License, Passport
Proof of Address Electricity Bill, Water Bill, Passport
Proof of Income Salaried: Bank statement for the past six months
Work experience Employment Certificate for a minimum of 1-year experience

For Self-Employed:

Particulars Documents required
Proof of Identity Aadhar Card, PAN Card, Driving License, Passport
Proof of Address Aadhar Card, Electricity Bill, Water Bill, Passport
Proof of Income Bank statement for the past three months.

Salary Slips of three months.

Income Tax Returns for the last three years

Balance Sheet and Profit & Loss Statements for the last three years audited by a CA.

Also Read: How Can You Get a Quick and Easy Instant Loan Without Documents?

Opting for A Personal Loan in Amritsar: Reasons

Personal loans can be taken for specific reasons unless illegal. Below are situations where you can use your loan to meet your expenditures quickly.

For consolidating debts

You can use a personal loan to pay off your old debts, which will help you avoid more interest and improve your credit score. With one loan, you can close all other old debts and ensure you only pay one EMI at a time.

For home improvement

If you plan to renovate your home or do repair work, it will increase your house’s positivity and economic value. You can utilise a personal loan to fulfil this need.

For moving costs

Imagine you have to relocate to another place in Amritsar. Then you have to manage the expenses of packers & movers, buying new appliances & furniture etc. Recently, fuel rates have been higher, which also costs you for that transportation. Thus, you can cover those expenditures well with a personal loan.

For a medical emergency

A medical emergency can strike you anytime, like an accident, chronic disease, surgery etc. You may not get full coverage from your health insurance during that time. Still, you will need funds to recover your health. Thus, you can use a personal loan with quick approval.

For a wedding

Wedding expenses include picking a venue, invitation card, wedding attires, decorations, and other works. So without draining your savings, you can cover these necessities with a personal loan.

For new appliances

You can purchase any electronic gadgets like smart TV, laptop, refrigerator, washing machines etc., using a personal loan with one payment.

For travel costs

If you are planning a dream trip, then you can use a personal loan to fund it rather than using your savings.

For rental deposit

While renting a home, you must pay the lender a refundable deposit. Mostly, it will be like six months of rent together. So you can use a personal loan to arrange the deposit amount immediately.

Personal Loan

Procedures To Apply For A Personal Loan In Amritsar

  • Firstly, download the mobile application or visit the official website of a particular bank or NBFC if you wish to apply for a loan.
  • Then log in to your account. Find out if you fulfill the eligibility criteria of a specific lender and fill up the form regarding the required loan amount, tenure, etc.
  • Fill out the form by giving your personal and professional details, such as
  1. Type of employment
  2. Email Id
  3. Company name
  4. Type of your industry
  5. Current Company Name
  6. Company address
  7. Year of employment
  8. Monthly salary
  9. Salary mode
  10. PAN Card number
  11. Full Name (as per PAN card)
  12. Current Residence with Pin code
  13. Mobile Number
  • Next, lenders will process verification. Once done, the lender can transfer your loan amount directly to your account within 24 to 48 hours.

Low Interest Rates

Factors that Affect your Personal Loan Interest Rates

A personal loan with better interest rates is bliss in your troubles. But maintaining the repayment of loans without getting any defaults is a big commitment. Your responsible credit behavior influences lenders to provide you with a low-interest rate. Lenders consider certain factors below for approving a loan with better interest rates. 

  • Credit Score -:

    It is a three-digit number that influences lenders to determine your creditworthiness and credibility. According to your credit score, lenders decide on the interest rates you get. A credit score provides lenders about your financial transactions, including your loans, monthly payments, credit behavior, and past credit history. Hence, a higher score is considered for availing of a low-interest rate.

  • Debt-to-income ratio -:

    You have to maintain stability over how much you earn monthly and how much you pay for debts. Any imbalance in it will create trouble getting better interest rates while applying for a loan. Your debt-to-income ratio should be below 30%.

  • Income -:

    If you possess a higher income and have a responsible credit history, you are more open to getting low interest on your loan. You might be considered a person with a higher repayment capacity than a low-income person. Thus, you can easily avail of a low-interest rate on your loans.

  • Employer’s status -:

    When you work in a well-known, reputed, reliable company, you are easily eligible for a loan with low interest.

  • Relationship with the lender -:

    When you have lengthy financial transactions with a specific lender, then you might be considered a trustworthy customer by them. As they already know your credit history and repayment capacity, you can get a quick personal loan with a low-interest rate. 

  • History of defaults -:

    Whenever you choose loans and EMIs, you must be cautious about making the repayments on time. Any missed due can create a default on your credit and stay for more than a year. Even a bounced check can be a reason for your default. Hence, check your credit report regularly to get alerted about defaults and errors.

Also Read: Get The Best Personal Loan Interest Rates in India

Conclusion

When you require a personal loan, it is essential to do your research and compare the offers and interest rates from different lenders. Then only proceed with the best option that benefits you. A personal loan can be a helpful way to consolidate debt or pay for unexpected expenses, but make sure you understand the terms and conditions before signing any paperwork. If you are looking for a personal loan in Amritsar, Punjab, sign in to Buddy Loan today.

People May Ask

When can I apply for a personal loan in Amritsar?

You can apply for a personal loan if you want extra funds instantly, as in a medical emergency, wedding, traveling, etc.

What are the required documents for a loan application?

You must submit some essential documents online or offline while applying for a loan.

  • PAN
  • Identity proof – Aadhar card, passport, driving license, etc.
  • Address proof – Aadhar card.
  • Past three months’ bank statements.
  • Salary slip.
  • Income tax returns. 

How can I get a Low-interest Personal loan in Amritsar?

If you have a high credit score, you can easily avail of a personal loan with low-interests. You can check your credit score with Buddy Score and choose a suitable lender who provides low interest. 

Do I have to pay additional fees while applying for a personal loan?

Yes, you must pay a GST of 18 % and a processing fee depending on the specific bank or lender.

When will I get the personal loan amount?

Once the lenders complete the verification process, you will get instant approval and transfer of the amount directly to your account.