Personal loans generally come under the category of unsecured loans where the bank or any financial institution depends on the customer’s promise to pay it back. Due to the presence of greater risk, the interest rates usually keep at higher sides. People generally apply for a personal loan to settle their immediate expenses. Some have to pay for outstanding utility bills, while others may have to go for medical treatment and need the money.

Eligibility for Applying for Loan

Generally, anyone who is 18 and older can apply for a personal loan. When applying for the loan through a bank, they should also have an account with the bank. Further, the person applying for the loan must possess a good credit history and a stable source of earning. If an applicant is fulfilling the mentioned criteria, then he is eligible to avail loan facility.

Tenure of the Loan and Other Checks

Due to the massive competition, most of the financial institutions have introduced flexible repayment product programs, and the borrower can choose among the tenures of one to three years. The repayment amount, including the interest charge, is payable monthly till the occupancy of the loan. Upon approval of the loan application, the requested amount can go into the customer’s account within 48 hours. Some banks may also require the current salary slips and the last six months’ bank statements. These are the standard requirements when you apply to get a loan from a bank. If you go to a third-party lender, they may require fewer documents, but unlike banks, they can offer you only a few thousand in the loan. If you want more, you will have to file a personal loan application with a bank.

You can also check online for personal loan options. If securing a personal loan seems challenging, you can hire the services of an individual loan broker that will work on your behalf to get you the loan. Ideally, you should go for personal loans when you need money to settle an outstanding bill. Some people even take out these loans when they want to go on vacation. It is better to spend the personal loan amount to settle bills or any other outstanding credit card dues that are costing you money in penalties. You can find it easier to get a personal loan, but since the borrowing is unsecured, the lending channel usually charges more interest.