Personal Loan
A personal loan is an unsecured loan offered by banks, NBFCs, and financial institutions to individuals based on their income, credit score, and repayment capacity. Unlike secured loans (like home or auto loans), personal loans do not require you to pledge any asset as collateral.
It is one of the most flexible financial tools available, allowing you to meet a wide range of personal, professional, or emergency needs—without lengthy processes or strict usage restrictions.
At P M Associates, we help you access the right personal loan at the best possible rate, with complete guidance and support from start to finish.
Get Free a Quote
Features and Benefits of Personal Loans
Given below are some of the features and benefits of personal loans:
- No Security Required: Individuals do not have to provide any security or collateral for availing of a personal loan. This loan is usually approved on the basis of the applicant’s creditworthiness. This depends on the credit score, employer reputation, credit history, and repayment capacity.
- End-Use Flexibility: One of the most impressive features of a personal loan product is the flexibility in end-use. These loans can be availed to meet several expenses, such as home renovation, medical expenses, travel, etc.
- Flexible Tenures: Usually, lenders offer loan products with flexible repayment tenures ranging from 12 months to 60 months.
- Hassle-Free Documentation: Individuals can make personal loan applications online as well as offline. The documentation process is comparatively quick and hassle-free. Some of the key documents that you must submit for a successful application are identity, income and address proof documents.
- Quick Loan Disbursal: The personal loan amount can be deposited in the applicant’s bank account within just a few hours of application processing. In the case of pre-approved loan offers, the turnaround time can be even lower.
- Flexible Approved Amount: The personal loan amount approved for the applicant depends on their repayment history, age, profession, income, employer’s reputation, and other such factors. Usually, lenders offer personal loans ranging from Rs. 10,000 to Rs. 40 lakhs.
In today’s ever-changing financial environment, it is not uncommon for people to avail of a personal loan to meet their financial needs. One of the major reasons that people prefer a personal loan is that it is an unsecured line of credit for which the individual does not have to provide collateral. Anyone can obtain a personal loan from any bank or NBFC of their choice by just submitting the application and supporting documents.
Personal Loan Eligibility Criteria
| Age | 21 years to 68 years |
| Employment Type |
|
| Employment Status | Should be employed or in business for minimum 2-5 years |
| Minimum Monthly Income | Over Rs. 5,000 |
| Work Experience | 1 to 3 years and above |
| Credit Score | 750 or more |
| Maximum Existing EMI | Less than 65% of monthly income |
Documents Required for Personal Loan
General Documents
- Identity Proofs: Voter ID, Passport, Aadhaar Card, Driving License.
- PAN Card.
- Signature Proofs: PAN Card, Passport, etc.
- Address Proofs: Ration Card, Rent Agreement, Passport Copy, Aadhaar Card, Utility Bill, Voter ID Card.
- Bank account statement from last six months.
Self-Employed Individuals
- P&L account and balance sheet from the previous 2 years.
- ITR from the last 2 years.
- Business Proofs, like GST Number, Registration Certificate, License.
- TDS Certificate, Income Tax Challans or Form 26 AS for declared income in ITR.
Salaried Individuals
- Salary slips from the last 3 months.
- Form 16 or ITR returns.
