Unexpected expenses can crop up at any given time. You might have to pay off medical bills, finance your higher education of your children, or arrange funds for an event. You can manage such financial circumstances by relying on assistance from banks. Banks offer Personal Loans that can help you avail of funds to meet any and every financial requirement.
What is a Personal Loan?
Several loans are offered to meet specific purposes, like a Car Loan, Home Loan, Medical Loan, etc. However, a Personal Loan can be used to meet any legitimate financial concern. It can be tailor-made to suit your specific requirements. Furthermore, it is an unsecured loan, so you will not have to offer any collateral as security. Thus, even during difficult situations, you can avail of a Personal Loan with relative ease. These loans are disbursed in quick time frames and require you to submit minimal documentation. However, since they are a form of unsecured loan, the interest rate is comparatively higher. Today, you can get a Personal Loan with minimum documents online from the comfort of your home.
Read more on how to get a Personal Loan with minimum documents here.
When Can You Opt for a Personal Loan?
As mentioned above, an Instant Personal Loan without documents can be used for myriad purposes, according to your needs. Some circumstances for which you can use a Personal Loan are as follows:
Medical Expenses: while you can apply for a Medical Loan, often applying for a Personal Loan might be easier. You can use the loan amount to pay for treatment, medication, hospital and doctor’s charges, etc.
Financial Emergency: in case you have fallen on hard times or have to suddenly organise funds, you can apply for a Personal Loan.
Funding a holiday: You can use the loan amount to pay for the various expenses that come up on vacation. You can book flight tickets, pay for hotel rooms, food, etc. using a Personal Loan.
Buying a gadget: purchasing a new piece of technology is expensive. If you want to buy a laptop, computer, mobile, or any other gadget, you can use the amount availed through a Personal Loan.
Events: You required funds to plan grand events like a wedding or an important anniversary. To pay for the space, catering, travel, etc., you can use a Personal Loan.
What factors are taken into consideration during Personal Loan approval?
Since a Personal Loan is unsecured, lenders undertake considerable risk while they approve your application. Thus, they consider other factors before deciding to approve your Instant Loans without documents application, such as:
Income: lenders needs to make sure that you have sufficient income to repay the loan amount borrowed.
Credit Score: your credit score reflects your repayment history and lenders review it to understand if you will repay the loan EMIs on time.
Employer: lenders look at your employer to get a better understanding of your creditworthiness. It helps them understand if you are financially solvent and responsible.
Debt-to-Income Ratio: Your debt-to-Income ratio is a comparison of your income and overall debt. It helps lenders ascertain the debt burden already ascribed to you.
Default: Lenders consider whether you have defaulted while repaying any loan EMI or other payment before granting you approval.
All in all, Personal Loans can be of great help in meeting financial challenges of various kinds. HDFC Bank recognises the importance of an Instant Loans without documents and offers them at attractive interest rates. With quick disbursal and easy repayment options the HDFC Bank Personal Loan can make your life easier. Click here to apply for an HDFC Bank Personal Loan!
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Personal Loan at the sole discretion of HDFC Bank limited. Loan disbursal is subject to documentation and verification as per Banks requirement.