With increase in prices, it becomes difficult for a common man to fulfill expectations as responsibilities increase with age. Thus to ease tension one opts to apply for loan to pay off for the urgent expenses. When finances start pooling in one could repay the loan. Equal monthly installments also help to repay part by part so that the burden is not felt at once. There is a loan available for every purpose introduced to promote the facilities of the bank. However, eligibility criteria vary for each.
One of them is Signature Loan or Personal Loan, which is the money borrowed to cover small essential expenses like house renovation, marriage expenses, for higher education or for buying electronic goods etc. the amount is lent without any guarantee but by promises made.
Money borrowed is repaid through equal monthly installments, direct debit from account or through electronic transfer. Early repayment may require assessment of penalties. It is of advantage if borrowed for a short time period as the risks involved increase interest rates.
Irrespective of the source of income people are entitled to apply for personal loan. However, the eligibility criteria vary accordingly. Salaried people are granted if they are citizens of the respective country, fall in the standard age bracket and have the minimum salary requirements of the bank. Consistent long work experience with the current employee and proper residence proof is preferred. Loan to self-employed people is granted if the individual is the citizen of the country and hold experience in the same business for a given period of time with the said annual income. Firms maintained in partnership and private limited companies are also eligible to apply for Personal Loan.
Personal Loan comes with many benefits. The factors responsible for granting loan are definite income and the ability to pay the installments monthly. Security is not required. Paperwork processing is quick. But it is based on the timely submission of the required documents to the lender. However, the documents required for this specific loan are minimal.