Are you seeking a practical solution to manage your immediate financial requirements, such as home repairs, medical bills, travelling, or urgent monetary needs? If you are, your search is over with a personal loan. Usually unsecured, these loans act as a lifesaver when you urgently need extra funds. A personal loan has gained tremendous popularity among individuals in India who understand what it is like to have some amount of money on hand.
If you are looking for short-term financing, settle for no less than a 20,000 loan for 12 months. These loans are an outstanding option for people who don’t want to be connected with the lending institution for years. Using a loan for a year allows them to settle their debt faster without any commitment.
In this blog, we will discuss how you can take a ₹20,000 personal loan for a year.
Many lending institutions offer personal loans without asking for proof of income from individuals, allowing them to reap significant benefits from their usage. They offer a unique, flexible platform to anybody looking for a 20,000 loan for 1 year, provided they meet the eligibility requirements.
Why Do You Need a ₹20,000 Loan for 12 Months?
A 20,000 loan for 12 months can be a handy, practical tool if you are looking forward to managing various expenses like those mentioned above. A lender you can trust without thinking twice about their credibility would come to your rescue, providing you with much-needed funds. That’s the beauty of partnering with a trusted lending institution!
Here is a list of some of the most common purposes for which you may reach out to a reputable lender to help you meet your needs with some financial support:
1. Home Improvement
Is something missing in your living room? Do you want to add endless charm? Running short on some cash is never a good idea, and it might make you feel restless. Worry not! Applying for a ₹20,000 personal loan is what you must be focusing on right now to renovate your home. Use the funds for making crucial repairs or renovations, and boost its market value.
2. Travel
Do you want to take a holiday in your chosen destination, but are experiencing a financial crunch? We understand how it feels when you have planned everything a few months before, only to find out later that the limitation of some funds will cause an unwanted delay in your travel plan. We have a perfect solution for you, i.e., a 20000 loan for 12 months. Wait no more! Turn your dream trip into reality and enjoy it like you have always wanted to.
3. Medical Emergency
A medical emergency can arise without prior warning! And a personal loan of ₹20,000 can help you deal with it in the best possible way. It will help you cover various expenses, such as hospitalization, surgery, medicine, and other miscellaneous costs. This loan ensures that your loved ones receive timely and instant care.
4. Shopping
Are you looking to buy a home appliance, such as a washing machine, an air conditioner, or a refrigerator? But you are short on some cash? Don’t worry! We have got the most amazing solution to make it work in your favour – a personal loan of 20,000 for a year. Not only does this loan help you improve the functionality of your home, but it also offers you convenience.
5. Loan to Clear Bills
Getting a 20000 loan for 12 months is one way to consolidate your debt. If you have 20,000 in debt spread across numerous credit cards, taking a personal loan will work to your advantage. The amount you take from the lending institution as a loan could be used to clear outstanding dues of credit cards. You can then pay only one payment on the loan every month.
Some Unique Features and Benefits of ₹20,000 Loan for 12 Months
A personal loan is the best and most attractive option for individuals looking to borrow funds for their diverse financial requirements.
Mentioned below are some of the biggest features and benefits of obtaining a personal loan of ₹20,000 for 12 months:
1. Unsecured
Most personal loans, which are offered by trustworthy lenders, are unsecured. This signifies you don’t have to provide any collateral. Many borrowers may not have assets to be pledged as security, so a 20,000 loan for 12 months is the most practical option for them to use.
2. Flexibility
A personal loan from a reputable lending institution gives you the flexibility to use the funds for various purposes, like the ones listed above. This flexibility makes personal loans a much-needed tool to help you at a time when you’re dealing with a financial crunch.
3. Fixed Interest Rates
Many reputable lending institutions offer you the best interest rate. This rate remains fixed throughout the term of your loan. It signifies that the payment you make every month will not change. Moreover, the interest rate is competitive enough to make you stick to the lending institution for years. You never know when you might need a personal loan in the future.
4. Instant Access to Funds
Personal loans, in many cases, offer instant approval and funding. That makes it easy for the borrowers to get the funds when they need them most, i.e., for their various financial expenses.
5. Credit Building
Making loan repayments on time or not missing out on any equated monthly installment (EMI) helps you boost your credit score. That is because it displays your responsible borrowing and loan repayment behaviour.
6. Minimal Documentation
A reliable lender streamlines the process for borrowers when they apply for a 20,000 loan for 12 months. That is why they need a set of basic documents, including an Aadhaar card, a PAN card, a driving license, a passport, employment proof, etc.
7. Quick Loan Disbursal
When you apply for a personal loan and submit the documents required by the lending institution, they don’t take much time to release the funds. You can look forward to a quick disbursal of the funds you require for your financial needs.
₹20,000 Loan for 12 Months - Eligibility Requirements You’re Required to Meet
Ensure you meet the eligibility requirements stated by the lending institution before you apply for a personal loan for 1 year. Keep in mind that the criteria vary from lender to lender, but you should be prepared for what’s listed below:
- Age: While applying for a personal loan of ₹20,000, make sure your age should not be less than 21 years and not more than above 55 years.
- Minimum Monthly Income: The income that you must be earning every month must not be less than ₹15,000.
- Credit Score: An excellent credit score plays a crucial role in getting a personal loan approval. So, ensure that your score is not less than 700.
- Citizenship: Only an Indian citizen is eligible to apply for a 20,000 loan for 12 months from a reputable lending institution.
- Employment: An individual applying for a personal loan must have full-time employment in either the private or government sector.
₹20,000 Loan for 12 Months - Documents You Require to Apply
Did you meet the eligibility requirements successfully? If yes, you will have to collect the basic documents for personal loan approval and submit them to the lender.
- Address Proof: This includes an Aadhaar card, driving license, passport, voter ID, or any other appropriate proof.
- Identity Proof: The documents to be submitted as proof of identity include a PAN card, driving license, passport, Voter ID, Aadhaar card, etc.
- Income Proof: This includes the salary slips of the last 3 months, last 6 months’ bank statements, ITR (income tax returns), and Form 16.
- Photographs: Ensure that two passport-size photographs are submitted along with the loan application.
₹20,000 Loan for 12 Months - How to Get One
In need of a small loan to handle your personal expenses? Applying for a 20,000 loan for 12 months will be the right thing to do, as it can be a manageable option. Here is how you can get the loan without hassles:
1. Choose the Right Lending Institution
Before you decide to apply for the loan, it is good to compare banks, digital loan platforms, and NBFCs (Non-Banking Financial Companies). Consider the ones that offer:
- Less paperwork
- Quick or same-day approval
- 12-month tenure for loan repayment
2. Keep Your Mandatory Documents Ready
While applying for a 20,000 loan for 12 months, you will need basic documents as mentioned above.
3. Check Your Credit Score
An ideal credit score of 700 or more improves your chances of getting approval on a personal loan. Moreover, it helps you get competitive interest rates.
4. Apply Online
Most lending institutions offer a quick, smooth, and easy online application to individuals. All you have to do is enter your details (basic information) and submit the documents, allowing the lender to approve the loan application. Ensure all the documents are in order if you don’t want any delay.
5. Get Quick Loan Disbursal
Once the lender approves the loan application, the funds are released by the lender to be credited into your bank account in a few hours.
Important Tip: Before signing the document, make sure you review the processing fees, interest rate, and late payment fee.
A professional lender will always think about their customers and put their needs as top priority. So, this ensures you have easy access to the funds you require without going through a tedious, lengthy process.
Final Thoughts
A personal loan of 20,000 from a reputable lending institution is a fast, stress-free, and easy way to get the desired funds. Applying for this loan requires minimal documentation and does not have stringent eligibility requirements to meet. However, before you decide to apply for a 20,000 loan for 12 months, don’t forget to evaluate your liabilities and then make a wise decision.
Frequently Asked Questions
Well, the credit score to apply for a personal loan of 20,000 varies from lender to lender. However, a credit score of 700 is what you need for your loan application to be considered for successful loan approval.
Yes, of course! You can easily get a ₹20,000 personal loan for 12 months without pledging any collateral. As an unsecured loan, there is no need for you to pledge your assets as security while taking out the loan.
Absolutely! When you decide on borrowing a personal loan of an amount as low as ₹20,000, the lender provides you with several great benefits. Such loans can be processed quickly and effortlessly.
A leading lending institution may require you to have a minimum income of ₹15,000 or ₹20,000 monthly for a personal loan.
Ensure that you are less than 21 years of age when applying for a personal loan of ₹20,000. The maximum age should be 65 years.