Personal Loans in Allahabad

How to Get a Personal Loan in Allahabad

Do you live in Allahabad? Are you looking for a personal loan in Allahabad and wondering what your options are? Read on!

Personal Loans in Allahabad – What is a personal loan?

What is a personal loan?

A personal loan is an unsecured loan, meaning you do not need to pledge collateral or offer any asset as security in order to avail the loan. The main advantage of a personal loan is that there is no restriction on how you use the loan amount. You might need funds for your business expansion, or might want to go for that dream round-the-world vacation, or want to re-furnish your home, or need urgent funds to tide over a crisis. Whatever the need be, you can address it using a personal loan. It can be used as a debt consolidation tool as well—although you might want to consider the interest rates.

Which brings us to the fact that personal loans are one of the costliest loans in the market. This is because lenders want to safeguard themselves against default. The interest rates could go up to as high as 32% or even more, depending on your credit situation.

Those who have a solid credit history with a good repayment record can get a personal loan in Allahabad at relatively low interest rates.

Personal Loans in Allahabad—General Features

Following is a general overview of the features of a personal loan:

Get Instant online approval

Most lenders offer the provision to apply online for a personal loan on their website. You can get instant approval within minutes if you apply online. Additionally, you can check your eligibility on the website before you apply for the loan, so that you know how much loan amount you are eligible for.

Get funds in 72 hours in your bank account

In times of financial crunch, a quick disbursal is what one looks for. Many banks disburse the loan amount within 72 hours of the loan being approved. It helps if you are an existing customer and you apply with your lender. This negates the requirement for documents, and the processing time is much faster.

Flexible Tenure and loan amount options

You can choose from tenures ranging from 12 months to 60 months. This may vary from lender to lender. The loan amount also differs from lender to lender, and it is best to check with them directly.

Personal Loans in Allahabad

All major banks and NBFCs offer personal loans in Allahabad. Popular banks and NBFC’s in Allahabad include: Fullerton, Axis Bank, HDFC Bank, Shriram Finance, ICICI Bank, SBI, Citibank, etc. If you do an internet check, you can get the full list of lenders offering personal loans in Allahabad.

It is important to note that even though banks offer personal loan in Allahabad without any form of collateral and / or guarantor or security, some lenders might require a guarantor or a token of some sort. This depends on your individual credit history and score as well as your repayment track.

Personal loans in Allahabad for salaried, self-employed and business people are available. You can compare and contrast to find the best personal loan providers in Allahabad. Do not apply with multiple lenders, as that might lead lenders to think that you are “credit hungry” and lead to rejection of your loan application.

Is it possible to get a Personal loan in Allahabad with bad credit?

The possibility of getting a personal loan with bad credit depends on two things:

• The severity of your credit situation, and
• Policies of your lender.

It is not entirely impossible to avail a personal loan with a bad credit score, but it is undeniably very difficult. Your lender might approve your loan but at unfavorable interest rates. There is no single “good credit score” that assures loan approval, as it depends on a variety of factors. It is advisable to raise your credit score to at least 700, if not 750 which is the ideal credit score, so that you can avail a personal loan at reasonably good terms. Take some time out and raise your credit score to a healthy number.

Eligibility for Personal Loan in Allahabad

• Age criteria: The applicant should be between 21 years to 65 years (at the time of maturity of the loan).
• Salaried, self-employed, and business professionals are eligible to apply. If you are not a regular wage earner, talk to your bank manager about your situation.
• Minimum salary for salaried people should be at least Rs. 15,000. The salary bracket depends on what tier of city you live in and the company you work for.
• Should be staying in the same address / city for at least 1 year
• Total work experience should be at least 2 years
• Should have a stable employment history.

You can check your eligibility for a personal loan in Allahabad online. Many major lenders have Eligibility Calculators on their website, using which you can calculate your eligibility

Documents Required for Personal Loans in Allahabad

For salaried / self-employed professionals:

The documents required are basic: Proof of Residence, Identity Proof, 6 months / 3 months bank statements etc. For professionals, your degree certificate / educational documents might be requested for along with last 2 years Income Tax returns.

Following are an overview of the documents generally asked while applying for a personal loan in Allahabad:

• Valid Identity Proof - Passport, Driving License, Voter ID Card, Aadhar Card, PAN Card (any one document to be submitted)
• Valid Address Proof – Lease/Rent Agreement, Passport, Driving License, Ration Card, Utility bill (not more than 3 months old), Bank Statement
• Income Proof Documents – Last 6 months salary slip and latest Form 16
• Bank Statements: Past 6 months bank statement with salary credit
• Continuity of employment proof, like offer letter, relieving letter, etc.

For the self-employed and those into business, the following might be requested for in addition to the above-mentioned documents.

• Degree Certificate / educational documents for self-employed professionals.
• Proof of business existence
• Last 3 years Income Tax returns (self and business)
• Last 3 years Profit /Loss and Balance Sheet, duly attested by a CA
• Any other documents as directed by the Bank or NBFC

Personal Loan in Allahabad With Low Interest

Personal loans are offered at low interest rates to those who have an excellent credit history and a good repayment record. If you have a good credit score, lenders will be willing to approve your personal loan, and what’s more, you could negotiate for the best interest rates! The lowest interest rate for a private personal loan in Allahabad could range anywhere from 11.99% p.a. and can go up to as high as 32% p.a. or higher.

Personal Loans in Allahabad FAQS

How to apply for Personal loan in Allahabad:

There are several ways to apply for a personal loan:

• You can apply directly online at the bank / NBFC's website;
• You can go in person to your nearest branch and apply with the required documentation
• You can approach a personal loan agent in Allahabad

Need help? Alternatively, if you think you need help with your personal loan application and advice on loan eligibility, then CreditMantri can guide you and match you with the loan offer that best suits your unique credit profile.