How Can Army Personnel Avail Personal Loans?
Banks and Non-Banking Financial Companies(NBFCs) provide loans to customers on a day to day basis worldwide. The loans are typically classified as secured and unsecured. A personal loan is unsecured and doesn’t need a physical asset as collateral to be pledged, unlike secured loans. A personal loan is unprejudiced, and anyone who meets the eligibility criteria of the loan can avail it in several hours from any bank and financial institute. Army personnel, medical doctors, laborer, construction workers, technologists, government employees, private employees, employers, corporations or even major organizations can avail this loan.
The loan amount likewise can be used for any kind of reason. Financing a new business, expanding a business, construction, medical bills, investment, home renovation, remodeling, car purchase, purchasing furniture or electronic appliances, scientific research, or for any other reason, a personal loan is instantly available. A Defense loan scheme is a personal loan scheme designed to cater to India’s defense citizens specifically. This loan is available in all the central banks and financial institutes.
Eligibility criteria for a personal loan for Army personnel
The applicant should be at least 18 years and at most 65 years to avail a personal loan in many banks and NBFCS. However, a few lenders demand a minimum age of 21 years from a personal loan applicant. In addition, the applicant must be working for at least two years with a minimum monthly salary of Rs15,000.
The required documents for personal loan application
ID Proof: A gazette document verifying the applicant’s identification. A PAN card, Aadhar card, Voter ID, Passport, driving license, or the government-issued army ID can be used as ID proof.
Address proof: A government-authorized document verifying the applicant’s official place of residence is demanded as address proof. PAN card, Aadhar card, Voter ID, Passport, driving license or government-issued army ID can be submitted as residence proof.
Income proof: An authorized document that states the monthly or annual income of the applicant is required as income proof. ITR, form 16 or salary slips can be submitted as income proof.
Employment proof: The government-issued ID card of the applicant is mandated for army personnel’s employment proof.
Bank statement: The account statement of the applicant for the past 3 to 6 months, depending on the lender’s demand.
Besides the above requirement, a bank or a financial company also requires a three-digit number known as CIBIL score or credit score to sanction the loan amount. A credit report summarizes the credit score. The credit Information Bureau (India) Limited (CIBIL) is a credit bureau that maintains records of personal, banking and employment information in addition to the list of previous debts and loans acquired of individuals, corporations, societies, trustees and any other banking customers. The score varies from 300 to 900 usually, and a score above 700 is considered good and is mandatory to increase the chances of availing of a personal loan tremendously. As the credit score indicates the applicant’s loan repayment capacity, a high score shows that the applicant can pay off the loan efficiently. Even after availing of the loan, maintaining a good credit score is necessary as it contains a substantial portion of the eligibility of most loans.
Benefits and features of personal loans
Personal loans do not need collateral, and therefore, the time to validate and evaluate the asset’s value to sanction the loan is saved by opting for personal loans. It can be availed anywhere at any time if the applicant has all the required documents. The disbursal of the loan amount is done within hours of the personal loan’s approval. The conventional offline mode is also as easy as the online mode. The interest rate of the personal loan is also an immense reason for its success and increasing demand over the years. A personal loan EMI calculator is an online tool that can calculate the interest rate of a personal loan according to the loan amount and tenure requirement.
SBI is one of the most renowned banks of India, with branches worldwide. The personal loan in SBI has eminent features and affordable rates. The SBI Personal Loan starts at 9.35% per annum. The bank offers both online and offline services.
Also read this: How much time does it take to avail a Personal Loan?