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Personal loan V/S Credit Card

If you are looking to buy something expensive and are in a dilemma about going ahead with a personal loan or a credit card, well, both have their pros and cons. A personal loan might be the right choice in some case and the credit card in others. It totally depends on the amount you need and the duration you need to pay it back.

What is a Credit Card?

A credit card is a finance option which lets you borrow a certain amount from the bank and pay it afterwards. It generally has a high-interest rate as compared to other loans in the market, especially a personal loan. The time limit to repay the amount is generally less. So, if you are looking to borrow limited finance and are capable of returning it very soon, then you can always go ahead with the credit card.

What is a Personal Loan?

A personal loan is also a finance option which you can avail through any commercial bank or an NBFC. It has comparatively a low rate of interest as compared to a credit card. It has a loan tenure of nearly 5 years. So, you can choose the tenure according to your ease and comfort. So, if you are looking to borrow a more substantial amount which you would pay back in instalments, a personal loan might be the right choice.

Credit Card Benefits

Firstly, It is comparatively easy to qualify for the eligibility criteria of a credit card.

Very easy to use, once you receive it you can use it any time and as many times you want.

Moreover, you can avail a credit card from the bank without even having to visit a bank.

You get many discount offers and other concessions now and then.

At last, it is one of the easiest and convenient finance borrowing options available in the market.

Personal Loan Benefits

It has a lower rate of interest as compared to a credit card.

In addition to this, You can avail a much larger amount than a credit card at a lesser rate of interest.

The tenure of the loan, i.e. the duration in which you have to pay back the loan is 5 years, which is very convenient for the borrower, as he can pay it back slowly rather than paying back in bulk.

You do not have to mortgage collateral to avail the loan like other loans. It is effortless to apply for this loan.

Likewise, If you are an internal customer of the bank, the bank considers you for giving a good deal on the interest rate that is charged to you.

It is a hassle-free process with the instant disbursal of funds.

These benefits give a personal loan an edge over other options if you are looking to borrow a bigger amount. Benefits of personal loan Amritsar are to look for.

How to apply for a Personal Loan?

It is very easy to apply for a personal loan. Personal loan Amritsar is one of the best finance options available in the market with best interest rates and quick loan disbursal.

For applying for a personal loan, you have to visit the bank’s website, or you can even visit the bank and apply offline.

Documentation for a Credit Card

Documentation of a credit card is very easy. You need some basic documents to avail a credit card like, your identity proof, residential proof, salary slips of the last 3 months, PAN card, aadhar card, etc.

Documentation for a Personal Loan

Documentation of a personal loan is also very simple and hassle-free. Some essential documents of yours and you are good to go. Documents like identity proof, residence proof, PAN card, Aadhar card, salary slip for the last 3 months, bank statement of last 6 months, 2 colored photos.

Documentation of a personal loan Amritsar is easy and the loan gets disbursed in no time at all.

So, we conclude that the loan or credit card, it all depends on the requirement and need of an individual. Rate of interest and loan tenure are crucial keys to look out for before borrowing the finances

Eligibility for Taking Personal Loan

Everyone can not avail a personal loan, there are some eligibility criteria based on which the bank provides a loan to the borrower.  There are two categories of applicants:

  1. Salaried
  2. Self-employed

Salaried Applicant

  1. The minimum age of the applicant should not be less than 21 years and maximum up to 60 years.
  2. If the borrower is residing in a metropolitan city, then they should have a minimum income of Rs 18,000. And if the person is from a non-metropolitan city, then they should have a minimum salary of Rs 12,000.
  3. The salary of the borrower should come in their bank account only.
  4. If a person is applying for the personal loan, then he must have a good credit history i.e. his CIBIL score must be above 700.
  5. The documentation process is easy; they have to submit their bank statement of the last three months and the salary slip of the last six months.

Self-Employed Applicant

  1. If a person is self-employed than the age of the applicant should be 25 years.
  2. The applicant should have been filing  ITR for the last three years.
  3. The credit score of the applicant should be good, and no debt should be left due.
  4. The minimum ITR which the applicant files should be of Rs 2.5 lakhs per annum.
  5. And if the applicant has a business, then his business should be running for the last three years.

How to Apply for Personal Loan Online?

Anybody can apply for Personal Loan online only in 2 minutes. The process of application is straightforward and quick.

 First of all, you should check your eligibility.

      1.     First, you need to visit a financial portal where you can compare different loaning scheme.

      2.     After that, choose which one suits your requirement the most and provide your basic detail on personal loan form 

      3.     Enter your contact number so that we can contact you back.

      4.     Dialabank is the best platform to apply for a personal loan as you will get a loan at affordable rates of interest.

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