What is a personal loan?
A personal loan is a type of loan given by banks to individuals without an asset guarantee for a period of between 1 to 10 years.
What do I need to be eligible for a personal loan?
Most personal loans are given to salaried employees, but they can also be given to professionals (doctors, lawyers, etc. who are freelancers) or to Self Employed.
The required documents for the personal loan are:
- A proof of income (Human resources issued letter “HR Letter” or historical bank statements)
- A positive credit rate (a good I-Score result)
- A balanced Debt Burden Ratio (DBR), which means that the amount you are looking to borrow added to your existing loan obligations does not exceed your ability to pay back the amount based on your proven income. For example Your obligations shouldn’t exceed 50% of your salary.