Personal loan is a loan which is given based on your educational qualifications, profession, credit history, past bank records, current income and repayment capacity. Personal loans are also known as customer loans and can be used to fulfil your immediate needs. For example – marriages, applying for some course, investment etc.
Personal loan works on the basis of an instalment paid with interest, once in a month or yearly which is solely your choice. There are services which are good at money lending in tanjong pagar which can be considered.
Documents you Require to get a Personal Loan
Several documents are required to apply for a personal loan. One must carry all the important documents at the time of form filling for loan application. Discussed below are the details about documents required to apply for a loan.
Credit score history
The most important aspect when applying for a loan is to have a credit score ranging from 550 to 600, which is considered as ideal. Many lenders require a minimum score of 500 in order to accept the loan application.
Income Proof
Income is another main factor which is looked at by lenders in order to know whether the person will be able to repay back or not. Evidence of the income is also required which may be in form of monthly bank statements.
Collateral
When applying for personal loans the lender would require you to submit some documents to your valuable asset which is equivalent to the recovery value in case of failure to repay the loan. It may include jewellery or property ownership documents. These papers act as a backup for the lender to rely on if the loan is not paid with interest.
Organisational fee receipt
The fee ranges from 1% to 8% of the loan amount that you have applied for.
Organisational fee is taken to make the loan papers. Organisation fee also depends on the amount of loan granted to you.
Typical Personal loan documents
The most common documents which are required include home residence, income proof and identity such as driver’s license, other state- issued ID, passport, certificate of citizenship, and birth certificate.
Conclusion
Applying for a loan is not a big hassle if one is sure that they will be able to repay the amount with interest. Also, having the right set of documents is a must.
Note that it is necessary to have a look at multiple options of banks and credit lenders before making the final decision of taking a loan at the best suitable interest rate.
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