A personal loan is money borrowed for any purpose, maybe for a student loan, a vacation, an unforeseen medical bill, a new appliance or a debt consolidated. You return the amount in Instalments in a specific period with the fixed interest. Almost all personal loans are unsecured, meaning they lack assets as security. The interest charged is expressed as APR (annual percentage rate), usually around 6%-36% based on your income, debts and credit score.

You can apply for a personal loan from a bank, online financial lender, credit union, credit card issuer or personal loan provider in Bikaner. The procedure is simple. There is an option to apply online or in person. You will have to give some financial and personal details like income, outstanding debts, employment status and complete credit score to determine whether you are eligible for the loan and the interest rate.

How to be eligible for the personal loan

The first and foremost step to take to be eligible for a personal loan is to determine if it’s benefiting you. For instance, if you want to redesign your house or purchase a brand-new car, a home or car loan may charge lower interest and are secured by the vehicle you wish to buy or the home you want to fix, based on your creditworthiness.

Although taking out a personal loan to pay for a family trip or consolidate debt is a good option, you might also want to give 0% introductory APR credit cards a try. Assuming you opt for that path, confirm whether you can pay off the amount before the zero per cent rate expires.

Things to consider for a personal loan

Before you decide to shop around for a personal loan in Bikaner or estimate how much you want to borrow, there are a few things to keep in check

First, understand how lenders finalize the price of a loan, so you can know if you can repay it. There are several online calculators to help you work out your expenses.

Though personal loans are cheap and easy to borrow, don’t turn a blind eye to other sources of income. For example, you can make money using your home as collateral.

Documents required for a personal loan

Each lender may require different documents to sanction a loan. You may need to fill in your security number, address and income on the application. You will also require these three documents

Proof of identity like a state-issued ID card, passport or driver’s license

Proof of income. You will have to provide tax returns, W-2s and 1099s, pay stubs, bank statements and employer contact details. If you own a personal business, the lender may ask for 1099s, bank statements or tax returns.

Address proof. Use your rental agreement or utility bill for this purpose. You can also use your mortgage statement, property tax receipt, voter registry card, and bank or credit card statement.

Along with these basic details, your finance might ask you about a co-signer or the motive behind taking a loan.