Personal loan vs professional loan: All you need to know

When we require money to fulfill certain financial requirements we take into account personal loans. But if you are a professionally qualified person then you have one more option of getting a professional loan. Not sure which loan you must opt for? 

Understand the meaning of a personal loan:

  • A personal loan is a loan that a financial institution gives after taking into account aspects like credit history. 
  • This unsecured credit is a multipurpose loan that can be used to fulfill the different financial needs of the person.
  • In the case of a personal loan the applicant does not have to give any collateral; that is this is an unsecured loan.

An insight into the important features of personal loans:

  • One can avail of personal loans with minimal documentation. The applicant has to check the eligibility online and if he is eligible then he can apply for the loan online.
  • The application process for a personal loan is very simple. All that the applicant needs to do is fill up the online application form and submit the soft copies of the documents online. If the applicant is eligible then the loan is approved instantly and the loan amount is credited to the applicant’s account in the next few hours.
  • In the case of financial institutions like Money View, the applicant can get a personal loan in the range of Rs 10,000 to Rs 5 lakhs.
  • The repayment tenure of the personal loan is normally in the range of 12 months to 60 months. The borrower can repay the personal loan amount in easy monthly installments.

The eligibility criteria of personal loan:

  • The personal loan applicant needs to be self-employed or must be a salaried person
  • The applicant has to fulfill the requirement of minimum monthly income and this may vary for different financial institutions.
  • If the person wants to apply for a personal loan then his salary must get credited directly to his bank account
  • For getting personal loans from a reputed financial institution like Money View the applicant has to be in the age group of 21 to 57 years.
  • The personal loan applicant also needs to fulfill the requirement of a minimum credit score.

Documentation formalities of personal loan:

  • For getting a personal loan from finance companies like Money View the applicant needs to submit photo id proof.
  • The applicant also has to submit address proof at the time of applying for a personal loan.
  • The applicant needs to submit his income proof to get a personal loan.

Understand the meaning of a professional loan:

  • A professional loan is an unsecured loan that is only given to a professionally qualified individual. This professionally qualified person must be providing professional services as an individual or he must be having a business.
  • The borrower can use this professional loan for a personal requirement or his business needs.
  • The applicant does not have to provide any collateral for getting a professional loan. Self-employed professionals like doctors, lawyers, chartered accountants can opt for professional loans. They can use this professional loan for buying equipment or for upgrading their business etc.
  • The applicant has to apply for the professional loan online and only online e-signing of the professional loan agreement is needed. Online acceptance of e-NACH or EMI repayment instruments is needed. So all that the applicant has to do is check eligibility online and submit the professional loan application online.

An insight into the important features of professional loans:

  • One can expect competitive interest rates in the case of professional loans. But before availing the professional loan facility one needs to compare the interest rates of different financial institutions and choose the one that offers minimal interest rates.
  • In the case of professional loans, there is not much documentation required and hence it is easy to apply for this loan.
  • Usually, there are not many processing fees involved in the case of a professional loan and also there are not any hidden charges in the case of this loan.

The eligibility criteria of professional loan:

  • The eligibility criteria of the professional loan depend on the earnings of the professional. Any other existing financial obligations of the professional are also taken into account by the financial institution before approving the professional loan.
  • The credit history of the professionally qualified person is also taken into account in the case of a professional loan.

Documentation formalities of professional loan:

  • The applicant has to provide professional qualification proof for professional loan
  • For the professional loan, the KYC documents of the applicant are required
  • The applicant also needs to submit his bank statement and employment proof or business proof.

So, which is better? Personal loans or professional loans?

According to some experts in the case of professional loans, one can get better pricing as compared to personal loans. Also in terms of flexibility in tenure and processing fees, professional loans score over personal loans.

In the case of professional loans, the professionally qualified person has a better chance of getting a higher loan amount. As compared to personal loans the professional can get more customized offerings in the case of professional loans.

But one needs to keep in mind that to avail for the professional loan facility you need to be professionally qualified. So what to do if you are not a professionally qualified person but are in dire need of a loan? In such cases, you have to turn to the option of personal loans but here also you need to provide income proof.

Conclusion:

Professional and personal loans have their own features and benefits. If you need a loan for some immediate financial needs then check if you fulfill the eligibility criteria of the professional or personal loan. If you are eligible to apply for any of the loans then all that you need to do is apply for the same online.

For complete information about personal loans, you can connect with one of the most reputed financial institutions in the country. That is Money View which offers personal loans at affordable-interest rates.