A Small or Mini Personal Loan is an unsecured borrowing for those who need a small amount to cover an urgent expense. You can apply for Loans with flexible repayment terms and interest rates starting from 10.49% per annum. They have no end-use restrictions. You can use them for legitimate purposes, such as medical treatment, home repairs, travel, appliance purchases, and other urgent financial commitments.
Both salaried and self-employed professionals are eligible to apply for a Personal Loan online through the Internet and Mobile Banking platforms. The minimum amount they can borrow is Rs. 50,000 with a maximum cap of Rs. 40 lakh. The tenure ranges between one to seven years, with processing fees of up to 2%. Moreover, ensure you earn at least Rs. 15,000 monthly to meet the criteria.
Eligibility criteria
You must fulfil the following eligibility criteria if you want to apply for a Loan:
- Profession:Salaried employees, self-employed professionals, and non-professionals.
- Age:If you are a salaried employee, your age should be between 20 and 58. If you are self-employed, you must be between 25 and 65 years old.
- Income:The minimal income for salaried individuals is Rs. 30,000, Rs. 15 lakh turnovers for self-employed professionals, and Rs. 40 lakh for non-professionals.
- Experience:Salaried applicants require at least two years of job experience, whereas business owners require at least five years of experience. Similarly, doctors should practice for at least three years before you apply for a Personal Loan.
- Duration at current residence: Whether a salaried employee or a self-employed professional, you should stay there for at least 12 months.
- Minimum profit:You should earn a profit of at least Rs. 2 lakh as a self-employed individual. Similarly, non-professionals should earn at least Rs. 1 lakh after tax deductions.
Documents required for Loan application
The list of documents you need to submit to the bank during Loan application includes identity proof (passport, driving license, PAN Card, Election Card, etc.), address proof (latest utility bill, passport, and leave and license agreement), last three months’ salary slips and bank statements, previous two years’ audited financials, office address and ownership proof, business continuity proof, and two passport-sized photos.
How to apply for it?
Suppose you are interested in and eligible to apply for a Loan. In that case, you need to log on to the Online Banking portals, fill out the Loan application form, check out the eligibility and interest rates, personalise the plan by selecting the desired tenure, submit the KYC documentation, and review and accept the Loan offer to get quick disbursement.
If you want to plan your finances smoothly, consider using the Personal Loan EMI calculator which is available on banking websites and apps. Enter the amount, tenure, and interest rate in the respective fields to get quick and accurate results. You can also alter the variables as often as desired to arrive at an affordable instalment amount.