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How to Apply for a Personal Loan: Step-by-Step Guide | Fi Money

Personal Loan Documents Required in India: Eligibility & Process

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Understand how personal loans can provide financial flexibility and support along with knowing about different loan options. 

Personal Loan: Meaning, Types, Benefits & More

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"Personal Loan: Meaning, Types, Benefits & More"

Ulfath Joad

Get your loan basics covered: Think interest rates, clearing debt, etc.

<p>Financial flexibility has emerged as a key component of modern living in today's fast-paced world. Whether you want to renovate your home, consolidate high-interest debts, or fund an unexpected medical expense, several types of personal loans have been designed to answer your financial needs.</p><h2>Understanding What Personal Loans Are</h2><p>A personal loan is an unsecured loan borrowed from financial institutions, which include banks or online lenders. Unlike secured loans that require collateral, personal loans are granted solely based on your creditworthiness. This means that if you have a solid credit history and a stable income, you will likely secure a better interest rate on your personal loan.</p><p>However, you must be aware of personal loan eligibility criteria to secure this credit.</p><h2>Types of Personal Loans</h2><p>Here are the different types of personal loans for which you can apply to eliminate your financial strain:</p><h3>1. Unsecured Personal Loans</h3><p>Unsecured personal loans do not require collateral from the borrower. The lender will evaluate the borrower's creditworthiness, income, and financial background. These loans are ideal for individuals who lack substantial assets to offer as collateral.</p><h3>2. Medical Loans</h3><p>Medical loans help pay for treatments or procedures not fully covered by insurance, bridging the financial gap between healthcare needs and available resources.</p><h3>3. Home Improvement Loans</h3><p>Home improvement loans fund home renovation, remodeling, and repairs, covering costs for adding a new room, upgrading your kitchen or bathroom, or making energy-efficient improvements.</p><h3>4. Wedding Loans</h3><p>A wedding loan is a specialised personal loan tailored to cover wedding-related expenses. It's a way to finance your wedding without depleting your savings or using high-interest credit cards.</p><h2>Benefits of a Personal Loan</h2><p>A personal loan is always a good deal to go for. Below are the benefits of a personal loan that you will receive while acquiring it:</p><ul role="list"><li><strong>Flexible Use&nbsp;</strong></li></ul><p>One of the most significant advantages of personal loans is their versatility. You can use the funds for nearly anything – from covering unexpected expenses to fulfilling personal aspirations.</p><ul role="list"><li><strong>No Collateral&nbsp;</strong></li></ul><p>The concern of putting your assets on the line is reduced with unsecured personal loans. This is particularly enticing for individuals who don't have many substantial assets to provide as collateral.</p><ul role="list"><li><strong>Fixed Interest Rates&nbsp;</strong></li></ul><p>Most personal loans have fixed interest rates, making it simpler to plan your monthly payments without worrying about unforeseen rate increases.</p><ul role="list"><li><strong>Easy Repayment&nbsp;</strong></li></ul><p>Personal loans have fixed terms and allow you to plan finances and repay the loan over a specific period. You can choose a repayment tenure that suits your financial cycle.</p><ul role="list"><li><strong>Quick Access&nbsp;</strong></li></ul><p>Online lenders have simplified the personal loan application process, frequently offering rapid approvals and funds, which might be essential in an emergency.</p><h2>Personal Loan Eligibility Criteria</h2><p>Before applying for a personal loan, it's essential to understand the eligibility criteria that lenders use to evaluate your application:</p><ul role="list"><li>Your age must be 18 or above.</li><li>You must have a stable monthly income.</li><li>Your credit score should be 750 or above (may vary across lenders).</li><li>You must be an Indian citizen.</li><li>Your financial health, i.e., repayment history of any previous loan and existing debts (if any) should be good.</li></ul><h2>Conclusion</h2><p>When considering a personal loan, it's essential to research and compare offers from various lenders. Check their interest rates, fees, and repayment terms to find the best fit for your financial situation. Before applying, assess your ability to make timely repayments to avoid any potential pitfalls.</p><h2>Get Instant Loan with Fi Money</h2><p><a target="_blank" rel="noopener noreferrer" href="https://fi.money/features/instant-loans">Through Fi Money, you can get instant loans </a>that arrive directly in your savings account. These are pre-approved personal loans made available to select users with good credit scores. On Fi, this process is 100% paperless, and the loans are provided at competitive interest rates — where each user remains in control with complete visibility of all details. Plus, you can avoid EMI late fees by setting up automatic in-app payments. Our licensed partner bank assigns an eligible loan amount to each user (up to ₹5 lakh).</p><h2>Frequently Asked Questions</h2><h3>1. How do I apply for a personal loan?</h3><p>To apply for a personal loan, you need to visit the financial institution's website and fill out an application form. This form will ask for your personal and financial information, such as income, employment details, and credit history.</p><h3>2. What factors affect my eligibility for a personal loan?</h3><p>When establishing your eligibility for a personal loan, lenders analyse characteristics such as your credit score, income, employment history, and previous debt.</p><h3>3. What happens if I can't repay my personal loan?</h3><p>Defaulting on a personal loan can lead to late fees, damage your credit, and, in extreme cases, legal action.</p><h3>4. What are the documents required for obtaining a personal loan?</h3><p>To get a personal loan, you must provide your Aadhar card, PAN card, bank statement for the current six months, and salary slips for the current three or six months.</p>

Personal Loan: Meaning, Types, Benefits & More | Fi Money

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