Life is unpredictable, sometimes it gives us immense happiness and pleasure, but sometimes our life passes through a difficult phase. Such emergencies don’t show up with prior notice. The situation becomes even more problematic when there is a crisis of funds. One may be in dire need of funds at various points in life.
In such situations, withdrawing an urgent Personal Loan is one of the best ways to arrange money. These are loans provided by Banks and other financial corporations for various uses. May God forbid that such a situation comes into anybody’s life, yet one needs to be aware of the Personal Loan requirements and the process to extract it. Therefore, through this blog, we will discuss urgent Personal Loans and various other related points. Read to know more about them.
Basic Information of Urgent Personal Loans
Almost all banks and financial institutions grant urgent loans. Getting a Personal Loan is easy and doesn’t involve much paperwork. The loan amount is credited to your account within a couple of days. These are personal cash loans that one can use according to his wish without any restrictions from the loan provider. You can apply for this via both online and offline modes. In both cases, you must fill out an application form and produce the following documents to secure the loan.
- Id – Proof:
lending institutions usually accept at least two Government Issued Identity Proofs. Some of them are mentioned below.
- Aadhar Card
- Voters Identity Card
- Driving License
- Passport issued by the Indian Government
- State ID or Domicile
- Birth Certificate
- Nationality or Citizenship Certificate
- Utility Bills (Of any Government provided Service)
- Any other Identity Proof issued by Government Organizations, like Military Identity Cards
- Address Proof
lending institutions often ask for some documents verifying your place of residency. They require it to get in touch with you in case they cannot contact you. Following are some documents that you can produce as proof of your address.
- Aadhar Card
- Ration Card
- Electricity Bill / Gas Bill / Water Bill (With your name mentioned over it)
- Rent Agreement or Annexure II
- Account Passbook
- Property Tax Receipt
- Proof of Income
lending institutions require documents verifying your income and its source. Some of them are included below.
- PAN Card
- Account Statements
- Payment Slips
- ITR (Income Tax returns) Receipt
- Income Certificate
You can use any of these documents to prove your income and its source. Some other documents can also be used, but it varies based on your lending institution.
- Other financial information
Banks or other financial corporations require various other documents to know about your assets, liabilities, and debts. Such documents may include
- PAN Card Statement
- Current Credit Card and Loan Statements
- Proof of other additional sources of income
- An approximate of your current expenses
- Statements of fixed expenses like Rent Agreement, Insurance Premium, Institutional Fees, etc.
Besides, lending institutions may demand the employer’s contact details to verify your employment. But in most cases, pay slips and account statements are enough to prove your income and employment. But, if lending institutions want more assurance regarding your employment, they may contact your employer for verification.
These were the documents and other requirements that all banks and financial corporations demand to sanction an instant personal loan. A few banks or small financial corporations may ask for documents such as Personal Loan requirements, like Property Tax receipts, copies of Form 16, Employees Appointment letters, etc.
Some Other Points to Consider
- High-Interest Rates
Urgent Personal Loans are granted without any mortgage or collateral. Therefore, they often have exorbitantly high annual interest rates. Interest rates for personal cash loans vary from 12 – 15 Percent Per Annum. Hence, it is advised to repay the loan amount as soon as possible to save yourself from paying huge interest over the principal amount.
- High Credit Score Required
The Credit score is a parameter to check your creditworthiness. As Personal Loans don’t require any collateral and are unsecured, lending institutions grant the loan amount only if you have an appreciable Credit Score. It is difficult to fetch an urgent loan with a low Experian Score.
Emergencies happen suddenly and often create financial crunch, and Personal Loans are a great relief at such times. But you must remember that urgent Personal Loans are high-interest loans. Therefore, it is good to repay them early. You can apply for a Personal Loan by visiting the loan provider’s website and uploading the Personal Loan requirements.