Personal Loan: What should be the monthly income to take a personal loan, know here...

A recent report by Bankbazaar.com has revealed that after a home loan, a personal loan is the most taken loan in the country. Banks also happily give this loan to their customers because they can charge high-interest rates on it. But, if some things are kept in mind before taking a personal loan, then banks will not be able to charge arbitrary interest from you. This will reduce your EMI burden and will also help in repaying the loan soon.

Nowadays it is easy to get a personal loan. Now there is no need to wait in the bank like before. Just apply for the loan through mobile, submit the required documents, and get the money in your bank account within a few hours. If you are also going to take a personal loan, then ask yourself a few things, and only after getting the correct answer, go to the bank to take the loan.

1. Loan is available against how much income?
For a personal loan, it is necessary for the person to have a fixed source of income. Banks give personal loans only when you have a solid source of fixed income. In the case of a working person, usually, a personal loan is given only after getting a salary of Rs 30 thousand. Apart from this, banks shy away from giving personal loans to retired people.

2. Why is a loan needed?
Before taking a personal loan, ask yourself this question: why is the loan required? It is important to evaluate whether you really need the loan. Will this loan fulfill your needs and can you manage by borrowing money from friends or relatives instead of a loan?

3. How much loan should I take?
Taking a personal loan means choosing a new loan agreement and avoiding borrowing more than you need. Before you start looking for a lender, calculate the exact amount of money you require. This will tell you how much money you need. Make further arrangements accordingly.

4. What is the tenure of the loan?
It is important to understand the loan tenure when considering a personal loan. The tenure of a personal loan usually ranges from 12 months to 60 months. Some financial institutions also offer a maximum tenure of 96 months and a minimum tenure of 6 months. Choosing the right loan tenure can help you get the right loan as per your specific financial needs and repayment capacity. If you want to keep the EMI burden less then choose a long-term loan. However, interest rates on short-term loans are lower.

5. Is your credit score good?
Before applying for a personal loan, it is essential to know your current credit score. Although there is no minimum acceptable credit score, maintaining a score of 750 or above is considered good. This will make it easier for you to get a personal loan at low interest.

6. How much time will it take to get the loan-
Depending on your application and loan amount, you may have to wait a while before receiving the funds. The time taken to obtain the loan amount can be critical, especially when you have less time to meet your financial needs. Therefore, it is important to negotiate with the bank in advance regarding the period of getting the loan.

7. Documents required for loan-
Before applying for a personal loan, you will have to provide the necessary documents to the lender. To ensure quick disbursement of the loan, you should prepare the documents in advance. These documents generally include ID, Aadhar Card, Passport, PAN Card, Driving License, Voter ID Card, etc. Along with this, an Income Tax Return (ITR) of two years is also asked.

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