How much money can a self-employed person get for a personal loan?

 

Being self-employed requires a huge amount of financial support. A self-employed individual needs to manage funds for both personal and business-related activities. Since a business does not generate a fixed income, it becomes difficult for a self-employed individual to meet ends. A personal loan is always beneficial for a self-employed individual to offer instant funds for both personal and business aspects. However, since it is an unsecured form of loan, the amount of risk involved is very high. For a self-employed individual, the set of eligibility criteria will completely vary from that of a salaried individual. Here’s how a self-employed individual can meet the personal loan eligibility criteria and get a high-value personal loan.

A good credit score is above 750

For a self-employed individual, both business credit scores and personal credit scores will be vital. It is important to underline the importance of a good credit score. In order to get a high credit score, you need to manage your credit activities. A high credit score represents less financial risk. With a good business credit score, an individual can get a personal loan. A high credit score always makes it easy to get a high-value personal loan. Therefore, before you go for personal loan apply online, self-employed individuals need to improve both their credit scores.

The stability of business will impact personal loans

A self-employed individual generates monthly income from a business. Therefore, a loan provider will always check the stability of the business in order to remove any sort of risk. An unstable business will not generate enough income to make personal loan repayment easy. Therefore, it is important that every business stabilise and get a good market cap to explore the possibility of a high-value personal loan.

Cash flow is important for personal loans

The cash flow statement is an important piece of the document and personal loan eligibility criteria. In order to get a personal loan, having the right cash flow statement is crucial. A cash flow statement speaks a lot about the finances of the business. Having too much depth in the market will not indicate creditworthiness. Therefore, it will become difficult for a loan provider to offer a high-value loan.

Documentation is an important step

In order to get a high-value personal loan, self-employed individuals need to get the right documentation. Documents relating to personnel as well as business are crucial to getting a personal loan.

A business plan makes a difference

In order to get a high-value personal loan, self-employed individuals need to have a proper business plan. A loan provider finds it easy to invest in a business with a meticulous business plan.

Read Full: How much of a personal loan can I get if my salary is 50,000?

Finishing up

Start a smooth personal loan apply online process by checking your personal loan eligibility. The personal loan calculator will help you understand eligibility and compare the best deals.

What is considered a personal loan?

 

A personal loan is a form of credit taken by an individual stuck in financial turmoil or crisis. With limited income and rising expenses, it is often found that individuals consider a personal loan. It is one of the most popular kinds of credit available by banks and non-banking financial institutions to make sure individuals are able to meet the emergencies and instant requirements of life. If you are thinking of taking an instant personal loan online, it is very important that you gain complete insight and knowledge before you finally borrow. Today, we are going to share some insight and information regarding what a personal loan is and some of its features so that it becomes easier for you to understand.

What is a personal loan?

A personal loan is an affordable and unsecured form of credit taken by individuals to meet personal needs and emergencies. It is an unsecured form of loan that does not require any security or collateral to be pledged at the time of taking the loan. A personal loan comes with a flexible repayment scheme where individuals need to pay a monthly instalment in order to close the loan within the loan term. With the help of proper research and meeting their eligibility criteria and loan requirements, it is very easy to get a personal loan from banks and non-banking financial institutions.

Features of a personal loan

●        A personal loan is also known as a same-day loan when you take an instant personal loan from digital platforms that are approved and disbursed on the very same day.

●        A personal loan is completely flexible and allows an individual to incur any kind of expense or need without any end-usage restriction. This means, like a home loan or a car loan meant for a specific reason, a personal loan can be used as instant cash for anything and everything.

●        A personal loan is completely unsecured when the loan provider will not charge or demand any security to be pledged.

●        A personal loan comes with eligibility criteria in terms of income, credit score, credit profile, personal loan documents, and financial background since it is an unsecured form of a loan.

●        A personal loan is easily available. You can get the best rate of interest from a non-banking or digital platform.

●        A personal loan comes with a flexible repayment scheme where the individual can finalise their own loan term depending upon their capacity to pay the monthly installments.

●        A personal loan can involve a small amount or a huge amount of money that is taken to meet a big-ticket expense like a home renovation, wedding, medical emergency, or paying credit card bills.

Read Full: Non-banking financial companies (NBFCs): An Insight

Wrapping up

It is important to have a smooth personal loan apply process when you take an instant personal loan online by meeting all the eligibility criteria. To make sure you complete your application process, it is important that you are able to provide all the required personal loan documents to your respective loan provider.

Different Types of Personal Loans in India

 A personal loan is one of the best mates that help individuals cover various instant needs, big-ticket expenses, and emergencies. Since a personal loan is completely flexible without any end-usage restriction, there are various types of personal loans depending upon the situation and need. For example, if you are stuck in a medical emergency, you can get a medical loan instantly. An instant personal loan online is one of the best choices for an individual as it is affordable and completely flexible.

Medical loan

A medical loan is a type of personal loan that is taken by an individual to meet various medical emergency expenses and costs. It is true that medical facilities in India have improved and advancement has taken place. However, it has become very expensive for individuals to afford medical treatment from specialised hospitals. However, that should not stop your loved ones from receiving the best treatment to recover soon. This is when you need medical loan approval on the very same day to meet your medical expenses.

Travel loan

A travel loan is a loan taken to cover all the travelling costs and expenses if you are planning a family vacation. Traveling is one of the best ways to relax your mind after a long, hectic schedule at work. As a result, if you want to plan a trip, let a travel loan handle all of the financial details so you don't have to dig into your savings or invest. A travel loan disbursement happens on the very same day, and it is quite an affordable type of loan if you are able to meet the credit eligibility and the loan prerequisites as decided by a particular loan provider.

Travel loan

A wedding loan is a personal loan that is taken out to meet the expenses during the wedding season. No matter how early you have started saving for your wedding, you always end up coming up with last-minute expenses that you can fulfil with the help of a wedding loan. A wedding loan is nothing but an instant personal loan that you can take in order to meet flexible expenses and requirements for a wedding. The rate of interest can be affordable if you are able to meet the eligibility requirements as decided by the loan provider.

Home renovation loan

A home renovation loan is a personal loan that is taken by individuals to renovate or remodel their existing homes with the latest features, technologies, and modern amenities. Since buying a home becomes a burden, many individuals choose to get a home renovation loan and give their home a new look.

Read More: Where can a personal loan be used?

Summing up

Did you know that some digital platforms are offering personal loans on Aadhaar Card? Yes, you can now get a personal loan in Delhior in any other city with your Aadhar card. No matter which digital platform you use to borrow, you should always use a personal loan EMI calculator to compare all of the rates and charges.

What is a Personal Loan?

 

A personal loan apply is one of the best financing options that can help you finance most of your major ticket expenses, like home repair, medical emergencies, credit card bills, and wedding expenses. It is an affordable type of loan that can be easily repaid by the borrower within the loan tenure. If you are financially stuck in some emergency or instant need, borrowing from friends or family does not look good at all. It is true that people do borrow from friends and family. However, if you can get a personal loan easily, what is the need to borrow from friends and family? Take out an instant personal loan from various loan providers like banks or non-banking financial institutions and consolidate all the balances to remove hurdles and obstacles in life. If you are taking a personal loan, it is important that you understand the features, personal loan eligibility, and know-how a personal loan works.

Features of a personal loan

●        A personal loan is completely flexible, which means that it does not come with any end-user restrictions and has a specific purpose to meet. For example, a home loan is meant for buying a home and a car loan is meant for buying a car. However, with a personal loan, you can go for any kind of expense without any fixed usage restriction.

●        A personal loan is one of the most affordable options to get instant funds for emergencies and immediate needs. They are also popularly known as same-day loans, which help you get an instant fund credited to your account within 24 hours. There are various non-banking financial institutions that offer a personal loan within two to three hours.

●        A personal loan is completely unsecured, which means you don't have to put up any security or collateral with a bank or other financial institution. In order to get a personal loan, it is only important to meet the eligibility criteria, and there is no need to pledge any security.

●        Personal loan apply through a non-banking financial institution or online digital platform. You can get a personal loan instantly from the comfort of your home or while you're working, as the entire application process takes a few minutes.

●        A personal loan comes with an easy repayment scheme where the borrower can choose his or her own flexible tenure so that the monthly instalment is under control and does not become a burden.

Read Full: What is the personal loan interest rate?

Wrapping up

If you need a smooth personal loan apply process, make sure you take an online personal loan in Mumbai from a non-banking financial institution. If you need an affordable personal loan, make sure you meet all the personal loan eligibility criteria in the right manner.

 

What is the personal loan interest rate?

 

A personal loan is one of the best financial solutions for small and big-ticket expenses. It is a huge financial survival at the time of instant requirements or emergencies. Both salaried and self-employed individuals can take a personal loan. Since a personal loan apply is completely unsecured in nature, the eligibility criteria is high. In order to get an affordable loan, you always need to make sure you get the right loan provider with the best eligibility criteria. The rate of interest on a personal loan is variable and differs from one loan provider to another. The best way to make sure you get a low rate is by comparing all the available deals. A personal loan interest rate is important because it decides the affordability of the loan. Therefore, let us discuss various aspects regarding personal loan interest rates.

What is the personal loan interest rate?

When you take an instant personal loan online, you need to pay a percentage of the personal loan interest rate to your loan provider. This rate of interest is paid by the borrower in response to the loan taken. It is a variable component that depends upon eligibility and the loan provider. There are two types of personal loan interest rates: fixed and floating. A low personal loan interest rate is important to make your loan affordable.

How to get a low personal loan interest rate?

Meeting eligibility criteria: In order to obtain an affordable interest rate, it is critical to meet the eligibility criteria in the proper condition. A personal loan is an unsecured form of loan, so the eligibility criteria are high. In order to get a low rate of interest, you need to have a good credit score along with a high income. Individuals with good credit eligibility always get a low rate of interest. Loan providers offer low rates of interest to individuals with low risk. Therefore, if you are planning to take a personal loan, work on your credit eligibility to get a low rate.

Research for the right loan provider: It is important to choose the right loan provider out of all the available options. Every loan provider offers a different rate of interest. Therefore, when you research more options, you will always get a better rate of interest. Do not settle down for the first loan approval without comparing other available options. Research compared the total loan cost and the rate of interest offered by banks and non-banking financial institutions.

Read More: All You Need to Know About Instalment Loans

Finishing up

If you need a low personal loan interest rate, make sure you meet the eligibility criteria for an instant personal loan online. Before you start your personal loan apply process, compare all the available loan options.

How to Avail Video KYC for Personal Loan & Why is it Important?

 

When you start a new financial relationship with any loan provider, you need to avail video KYC.  Knowing your customers is very important to avail of a personal loan in Noida or any form of credit. KYC is the process of verification of documents. It is important to run a background check on the individual's background. Without background verification, a personal loan apply process will not be entertained. Nowadays, banks and non-banking financial institutions offer video KYC options. 

 

What is a personal loan video KYC?

 

KYC is basically about knowing your customer better. It is a background check of an individual done by banks or non-banking financial before offering a new loan. KYC is done to validate and authenticate the information offered by the individuals. KYC is usually a process where all the financial, as well as personal information of a borrower, is validated and authenticated. An instant personal loanonline needs validation and a background check which can be done with the help of KYC documentation. It also helps a customer in getting a good personal loan interest rate.

Process of video KYC

●     The official website will have a KYC online form. Visit the official website and fill that form with all the necessary information.

 

●     You will get a confirmation message with an online link that you can click and open on your smart device.

 

●     Click on the online link to join and connect with the KYC verification person. If there is no one to join, you will get a new date as per convenience.

 

●     Once you get connected with a verification officer, you need to show all the documents like PAN card and anything as required.

 

●     Your live picture will be captured. There will be various questions along with the verification.

 

●     All your documents and your pictures will be matched with the documents with the help of artificial intelligence. Once you are done, the verification officer will disconnect the call.

Benefits of video KYC

No branch visits: Usually, banks do it physically, but there is a video KYC option available now. A video KYC option is taken since the advent of pandemics. Onboarding and validation of documents are done with the help of video. It helps the customers as well as the financial institutions to do the background check over the internet only.

Easy verification: A video KYC process is done using a smartphone or laptop. It is minimal and done in an instant manner. It is a very easy verification process where you don’t need to visit the branch with your documents for KYC documentation.

Read Full: Should I Use a Personal Loan to Buy a Car?

Wrapping up

KYC process is a vital step in personal loan apply for an instant personal loan online. If you need a personal loan in Noida, visit Clix Capital today. 

 

Is a private function, such as a wedding reception, eligible for a personal loan?

 

A wedding in India holds a lot of societal importance and recognition. It is vital to arrange an extravagant wedding to maintain your status in society. If you are planning to get married or have anyone in your family, it will cost a good deal. Arranging a private function at a wedding has become expensive considering the expenses it incurs. A wedding reception or a private function takes a lot of funds. It is important to cover all the essential costs of a wedding. An instant personal loan online is the best way to arrange a smooth source of funds to meet the wedding expenses. Are you planning to get a wedding loan? Before you apply, let us get a complete insight into what it is all about.

What is a wedding loan?

A wedding loan is taken to cover all the wedding expenses. A wedding loan is nothing but an instant personal loan. It is taken by individuals to meet various expenses related to weddings and private functions. A wedding loan is an affordable loan and very flexible enough to be used for anything and everything. You can actually use a wedding loan like instant cash in your wallet without any end-usage restrictions. It is an affordable choice without the need to pledge security or collateral. Here’s how you can use an instant personal loan online for your wedding.

Use a wedding loan for catering services

Indians are big-time foodies. At Indian weddings, the priority is food. The expense of catering services is huge. It is very important to take a wedding loan so that you can invite all your friends and family without compromising on the guest list. A wedding loan will actually help you cover the entire catering cost.

Personal loan for the venue

Venue options in India vary within a large range. You can get both budget-friendly as well as luxurious and grand wedding venues. It is expensive to book a slot for a wedding nowadays. Therefore, you need to plan and take a personal loan so that you are able to book your dream wedding.

Take a personal loan for gifts and outfits

Gifting and outfits are an important part of the wedding. Weddings incur a lot of expenses when it comes to gifts, jewellery, and costumes. You can use a personal loan without any limitations in usage.

Read More: Is a personal loan available for holiday or travel purposes?

Apply to Clix Capital!

With Clix Capital, the personal loan apply online process will be smooth and hassle-free. You can easily get an instant personal loan online within a few hours and meet all the expenses for your wedding. It is recommended to use a personal EMI loan calculator to find the best affordable option in the market.

Is ITR required for a personal loan?

 

A personal loan is an unsecured form of loan that includes proper documentation and eligibility criteria. It is critical to apply for a personal loan with banks and non-banking companies if you have an income tax return. Whether you are salaried or self-employed, it is mandatory to file an income tax return for the previous years. Banks and non-banking companies will offer a personal loan in Delhi if you have filed an income tax return for a minimum of two years. Income tax returns are an important piece of documentation in a personal loan apply process that acts as proof of income. Income is a vital eligibility criterion to get an instant personal loan online. Therefore, tax liabilities and income proof are important.

Why is an income tax return required for personal loans?

An income tax return document is mandatory for personal loans. It should be submitted by both salaried and self-employed individuals. If your income falls under the taxation slab, it is mandatory to file an income tax return for the previous years. This is an official document that is taken as proof of income for salaried as well as self-employed individuals. In this document, the entire salary breakdown with gross and net salary is stated. The tax liabilities and tax deductions are also mentioned in the income tax return document. It is important for loan providers to check the financial background of individuals while taking a personal loan.

Read Also: MBA Education Loan – Fund Your Dream MBA Degree

Income tax return documents

The income tax return document is one of the most important and latest income tax returns that acts as proof of income for self-employed as well as salaried individuals. It comprises a balance sheet and a profit and loss statement and is certified by a chartered accountant. It clearly offers detailed income evidence for loan providers to judge the applicant on the basis of income before approval of personal loans.

Finishing up

If you want an instant personal loan online, make sure you have compared all the loan options using a personal loan EMI calculator. Get a smooth personal loan apply process with Clix Capital today. You can get a personal loan in Delhi easily with Clix Capital.

Personal Finance Advice You Should Ignore

 If you follow tips that you should ignore, it will lead to a financial crisis. Maintaining good credit health is very important for personal finance. There are various personal loan finance tips that you need to ignore. You need to make sure whether you are actually following the right tips or just following some useless myths around. If you do not follow the right personal finance tips, it will damage your credit health and background. Personal finance should be managed with the right steps and strategies. Since it is a popular financing option, there are various tips and myths that go around. However, if you end up following them without verification, you are actually doing the wrong thing. It is important to use only valid tips and strategies that work in your favour and not against your personal loans or finances. Little knowledge is very dangerous if you do not validate it. Here’s everything that you need to ignore when it comes to personal finance.

●     Closing a credit card that you do not use

Many people will probably tell you that if you don't use your credit card, you should close it. Many people from banks and financial institutions will even advise you to do so. Since it is not used, there is no point in keeping it open. This is one of the biggest mistakes that you can make and it will hurt your credit score immensely. Credit card accounts impact your credit score in a huge manner. It is one of the habits that actually improve your credit score in the long term. It is recommended to keep your credit account with a long credit history open even when you do not use it. Credit age actually improves your credit score.

●     Credit card balances are fine to keep

Credit card balances actually mean overdue and outstanding amounts that are pending on your credit card bill payment. But this is not at all a recommended activity to conduct. You should always pay the full bill amount whenever you are making a credit card payment. If you keep your accounts overdue or outstanding, it will actually damage your credit score and credit profile. This does not allow you to manage your personal finances in a responsible manner.

●     The only way to save money is by cutting down on expenses

It is true that cutting down on expenses can actually help you save. However, it is not the single factor that should be stressed. It is important to save through various investment products that are available in the market. You can also save a good amount of money by increasing your income. Therefore, it is important to locate various ways in which you can save your money. Cutting down on expenses can’t be the only solution.

●     Having loans hurt your credit profile

Accepting credit does not damage your credit profile or personal loan. However, failing to make a payment on time will damage your credit score.

Read More: Should one show hospital bills when taking a personal loan for a medical emergency?

Wrapping up

It is important to use the right tips when taking an instant personal loan online. Make sure you take the right borrowing amount and EMI with a personal EMI loan calculator.

Which is the best loan NBFC for self-employed people?

 

Self-employed individuals often end up taking a personal loan for business as well as personal expenses. A personal loan is versatile enough to cover both small and large expenses. This makes it a popular choice for self-employed individuals to meet business-related expenses. For various reasons, it becomes challenging to get a business loan in India. Therefore, we often see business owners taking personal loans from various loan providers. Considering the best services offered by non-banking financial institutions, we have seen huge popularity when it comes to NBFC borrowing experience. Non-banking financial companies are registered under the RBI. The presence of digital borrowing has made the entire borrowing process instant, easy, and hassle-free. Therefore, individuals need to choose the best quick loan online after comparing various loans from various banking and financial companies. Below listed are the parameters on the basis of which the comparison needs to be done.

●     Interest rates are available on a variety of digital platforms

The first and foremost factor of comparison should be the rate of interest offered by various digital platforms. The rate of interest is a variable component and will vary from one provider to another. Therefore, it is important for self-employed individuals to compare all the personal loan interest rates available on various digital platforms. After comparison, it will be effective to choose the best loan for self-employed individuals.

●     Approval and disbursement

Every non-banking financial company has its own operations and business processes. Therefore, you cannot expect every non-banking company to offer the same approval and disbursement time. While some would be approved within a few hours, others could take a working day. Therefore, as a self-employed individual, you need to compare all the available instant personal loan options to get the best one. If you are in instant need of cash, make sure you choose the best loan that gets approved within a few hours.

●     Customer service and support

The best factor that makes a non-banking company popular is robust customer service and support without any time limitations. Make sure you choose the best loan provider to have the perfect borrowing experience.

●     Conditions of use

Do not ignore the terms and conditions offered by loan providers. Every non-bank financial institution will have its own set of terms and conditions which you need to follow. It is important to compare all the terms and conditions and choose the one that is most favorable.

●     Eligibility criteria should be compared.

Every non-bank financial company has its own set of eligibility and loan prerequisites. You would definitely not want to choose a loan provider with high eligibility requirements. To get the best loan, it is important to find the right non-banking financial institution.

Read More: Which bank is best for personal loans for the self-employed?

Wrapping up

Are you aware of the personal loan interest rates now? If so, you need to compare the quick loans online before taking one. An instant personal loan is indeed financial security.

 

What are the basic loan documents?

 

Applying for a personal loan? If so, you need to prepare your loan application to avoid rejection. While you are working on meeting eligibility criteria, you must not forget your documents. Documentation is one of the vital steps in a personal loan application. It is vital to arrange all the original copies of documents as required by the loan provider. Without all the documents, you will not be able to do a personal loan apply. Therefore, in order to apply for a loan, you need to have all the basic loan documents. Here are all the personal loan documents required that you need to have.

What is the documentation?

Documentation is the complete process of running a background check and validating all the details and information about an individual. Various aspects of an individual are checked and considered for an instant personal loan online approval. The documentation process is different for salaried and self-employed individuals. The documentation is done along with the application process. Incomplete documentation leads to a loan rejection or cancellation of the loan request. Therefore, it is important to confirm the documentation for an easy personal loan application process.

Identification with a photograph

●     Passport

●     PAN Card

●     Driving License

●     Voters' ID Card

●     Ration Card

Residence Proof

●     Electricity Bill

●     Ration Card

●     Telephone Bill

●     Employment Letter

●     Passbook

●     Addressed bank statement

Documents Proving Your Age

●     PAN card

●     Passport

●     Birth certificate

●     Driving licence

●     Bank passbook

●     10th-grade mark sheet

Income proof and other documents

●     Statement of bank accounts

●     Two passport-size photographs

●     Passbook statement for the last 6 months

●     Liability statement

●     Personal assets

●     Property documents

●     Salary certificate

●     Signature verification

●     Form 16

●     Income tax returns

●     An advance income tax payment

●     Proof of business

●     Employment proof

●     Salary slips

With digital platforms, documentation is kept to a minimum

The best reason for choosing digital platforms is the minimal documentation. While banks would require you to be physically present for documentation, digital platforms offer instant and online documentation. When you apply through a digital platform or NBFC, you need to scan all the original documents and then upload them along with the online personal loan application form. The documentation process offered by digital platforms is very minimal. There are personal loans available just with a Pan card and an Aadhaar card.

More Read: What is a personal loan and its types?

Apply to Clix Capital!

Documentation is an important part of the personal loan application process. When you apply for an instant personal loan online, it is important to use a personal loan calculator. Make sure you meet the eligibility and have all the required documents.

Personal Loan vs. Business Loan: Which is Better?

 The two most common types of loans, personal loans and business loans, are often topics of debate. It is often seen that individuals are confused between doing a personal loan apply or a business loan apply. If a self-employed individual needs a smooth flow of funds, they usually have two options to choose from. A business loan is meant for business-related expenses, and a personal loan is completely flexible for anything. Therefore, you need to compare a personal loan with a business loan in order to find out which works best for you. Since an instant personal loan online has unlimited benefits and perks, it is always one of the most popular types of loans in the market. However, when it comes to businesses, a business loan is also very popular and recommended. If you are confused between the two, let us help with a detailed comparison between a personal loan and a business loan.

●        In terms of affordability, a personal loan is much more expensive than a business loan. If you need an affordable source of funds for your business, a business loan is indeed an ideal choice. Since a business loan is used for commercial purposes, it is always an affordable solution. The rate of interest and charges on a personal loan are very high in comparison to a business loan. Therefore, if you want to stick with a low-budget loan where the total cost will be affordable, you might consider a business loan.

●        A personal loan is completely flexible in terms of flexibility. A personal loan is flexible enough without any end-usage restrictions for the borrower. This means a borrower gets to meet personal as well as business-related expenses with the help of a personal loan. However, a business loan is rigid as it can only be used for business-related expenses. You cannot take a business loan for personal usage. If you take a personal loan, you can meet both business-related as well as personal expenses from one source of funds.

●        In terms of approval, a personal loan is instantly approved in comparison to a business loan. A personal loan is popularly known as a same-day loan with big risks; from application to disbursement, it takes a few hours only. However, a business loan takes around a week or five working days to get disbursed. Therefore, if you are in need of instant funds for business or personal needs, a personal loan will be approved on the very same day.

●        In terms of documentation, a business loan involves lengthy documentation where both personal as well as business-related documents need to be submitted. However, if you take a personal loan, you can get it with the help of a PAN or an Aadhaar card. Therefore, it has become an easy and smooth process to get an instant personal loan online over a business loan.

Wrapping up

An instant personal loan online is a better solution than a business loan since it is a completely flexible one. If you need an instant source of funds, start your personal loan apply process and get your account credited within the same day. It is recommended to use a personal EMI loan calculator to get better options.

 

How can I repay my personal loan?

 

Personal loans are very popular nowadays. A personal loan is a multi-purpose line of credit taken out by individuals, with benefits ranging from affordability to flexible repayment plans. It has a flexible repayment scheme, where the borrower decides the monthly instalment in order to reduce the burden. There is no such rule that a personal loan needs to be paid in a one-time payment. Keeping this in mind, an instant personal loan online is often taken by individuals for small and big ticket expenses.

What is the personal loan repayment scheme?

A personal loan comes with a flexible and smooth repayment scheme. It is not a one-time month to month repayment and offers enough flexibility to the borrower. The reason behind the popularity of personal loans is a smooth repayment scheme. If you take an instant personal loan online, the repayment will happen in the form of equal monthly instalments. The EMI, or equated monthly instalment, is made up of the loan principal amount, the number of months, and the interest rate.The monthly instalments that you pay towards your personal loan repayment will be comprised of these three elements added together and divided by the number of months in your loan tenure.

It is a smooth repayment scheme because the borrower has the flexibility to choose the monthly instalment amount. It has complete flexibility that an individual can choose a long-term or a short-term repayment scheme. When you choose a long-term personal loan, the monthly instalment amount will be low. Similarly, for a short-term personal loan repayment, the monthly instalment will be very high. Therefore, the repayment is done in an easy and smooth manner, which does not become a burden on the individual that has taken a personal loan.

How often does an individual need to repay the personal loan instalment?

A personal loan has a very flexible and easy repayment scheme where the individual makes a payment every month. They select a monthly instalment for the loan tenure of their choice and the same needs to be paid every month by a fixed due date. The instalment amount and the due date of every month remain unchanged. For example, if your personal loan due date is the 1st of every month, you need to make your payment on or within that same day of every month. It is only a single monthly instalment payment that you need to make. There are no extra or part payments in a personal loan repayment scheme. It is easy in a way where a borrower keeps track of the due date, which is fixed, and makes a single monthly instalment payment every month till the long term ends.

Read Full: How to avoid rejection of personal loan applications?

Summing up

If you need a personal loan in Jaipur or anywhere else, Clix Capital offers instant personal loans online on the very same day. However, when you calculate your monthly instalment, make sure you use a personal loan calculator to decide the right instalment amount.

 

Which documents are required for a personal loan?

 The first requirement to start a personal loan apply process is the documents. Documentation is important to complete the personal loan application process. Whether you apply for a personal loan from a bank or a non-banking financial institution, documentation is essential and compulsory. If you are applying for a personal loan, it is important to arrange all the original copies as required by the loan provider. Starting from age proof to income and address proof, documentation is compulsory. Here’s a complete list of all the documents that you need to submit to your respective loan provider for getting an instant personal loan online.

Documentation for personal loans

The list of documents for banks and non-banking financial institutions may vary. Due to digital borrowing facilities, non-banking financial institutions may offer you a loan with just a PAN card or an Aadhar card. However, if you borrow from a bank, they are very particular about the lengthy documentation process. Below are some of the essential lists of documents that are common for both banks and non-banking financial institutions.

Age proof

●        PAN Card

●        Aadhaar Card

●        Ration Card

●        Voter identification card

●        Passport

Address proof

●        Voter identification card

●        Electricity bill

●        Utility bills

●        Aadhaar card

●        Ration Card

●        Passport

Income proof

●        Form 16

●        Income tax return proof

●        Salary slips

●        Bank statement

●        Formal documents from employer

Salaried Employee

●        Form 16

●        Employment proof

●        Income tax return proof

●        Salary slips

Self-employed individuals

●        Business ownership papers

●        Property ownership

●        Tax proofs

●        Cash flow statement

●        Cash Reserve Statement

●        Balance sheet

●        Profit and loss statement

Why is documentation important?

Documentation is an important and compulsory process that a salaried or self-employed individual needs to go through. In order to have a smooth borrowing experience, it is essential that you arrange all the documents that would validate all the information and details about an individual. Documentation is done to run a background check on the borrower. A loan provider cannot offer a loan unless a proper background check regarding financial and personal verification is completed. The three most important aspects are address proof, age proof, and income proof. They are important for individuals to access personal loans. The personal loan application submission is successful only when all the required documents are submitted along with the application form. Therefore, it is important that you speak to your loan provider if you are not able to produce any documents. The required documents will be different for a salaried employee and a self-employed individual based on their type and source of income proof.

Read More: What is the easiest way to get your loan approved?

Wrapping up

Do you need a personal loan in Pune? If so, visit Clix Capital for a smooth personal loan apply process. From application to disbursement of an instant personal loan online, it takes around a few hours for the loan disbursement.