Definition of personal loan and How to get it ?

Today, a large number of people are taking personal loan for purchasing various objects and things they want especially the big-ticket ones. These same people are also trying to make their purchase decisions based on equated monthly instalments (EMIs).

And personal loans come there, they help households meet any shortcomings in terms of the buying experience of the consumer, be it a house or a car, maybe even invest in their children’s higher education, during medical emergencies, and so on and so forth.

Here’s a better understanding of what personal loan is and how you can get an instant personal loan.

What is a personal loan?

Putting it in simple words, personal loan is anything that is opted for by consumers from a bank or NBFC (non-banking financial company) to address the needs of their personal life. It is granted based on the following criteria;

  • income level of the individual
  • credit history
  • employment history
  • repayment capacity

A personal loan doesn’t work like a home loan or a car loan, this is not secured against any sort of asset. Since the whole prospect of personal loan is unsecured, the consumer doesn’t have to put up collateral like property or jewellery to avail the loan, the lender thereby in case of any problem, doesn’t have the right or cannot auction any product.

But that doesn’t mean one can take the aspect of personal loan lightly, just like any other loan, being unable to pay on time or in case of any default, it reflects badly on applying for credit cards, and also in terms of applying for other loans in future.

How can you use the loan?

The personal loan applied can be used for any kind of financial need that is personal, and the use of the money shall not be monitored by the bank. A consumer can use the amount for reconstructing their home, weddings, vacation to an exotic destination, children’s education, purchase of products and services, and also for sudden unexpected medical emergencies.

How to apply for a personal loan?

The first step to applying for a personal loan starts with an evaluation. And by evaluation, it means the consumer should know the exact amount he/she wants and needs.

Based on the above evaluation, he/she should consider any existing loan or any dues of credit cards, that is currently being repaid. As this would become a determining factor in the EMI the consumer shall be able to afford. You can use the Personal Loan Eligibility Calculator available online to calculate how much you can pay in a month.

Now check for Sugmya Finance‘s eligibility conditions to understand if you are eligible, based on your income and employment status.

If you’re a new or even an existing customer, you can apply for an instant personal loan online directly from our website, Sufinn.com. Just upload your KYC, address proof and income proof along with the application form, and a cheque for the processing charge.

After the above documents are verified, the loan shall be sanctioned and the amount shall be approved upon signing the agreement and the Standing Instruction (SI) Request/ECS Forms. Following which the amount will be credited to your account, which may take up to 30 days.

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