Personal Loan - Documents Required & Eligibility
A personal loan is a type of loan that one can take if they are in need of some extra funds. For example, if you need quick medical treatment that may be expensive and is not covered in your health insurance, then instead of running from pillar to post to accumulate funds, you can apply for a personal loan. An emergency situation is not the only time you can use a personal loan. If you have a large expense coming up, like a wedding or paying for education fees, then you can take a personal loan for the same.
Once the loan is disbursed, you have to start the repayment process by paying your EMIs every month.
HOW TO APPLY FOR A PERSONAL LOAN?
Applying for a personal loan has never been easier. You can simply apply for a personal loan by visiting any lenders website and filling out the personal loan form. We have summarized the loan application process below:
- Visit the lenders website and find the Apply for Personal Loan option
- Check your eligibility by entering the loan amount, tenure and personal details
- Fill out the application form and upload relevant documents
- A representative of the lender will contact you and move the process forward.
- Once the loan is sanctioned, the amount will be disbursed to you in your account.
Alternatively, you can also visit the physical address of your lender and fill out the form and submit it along with the documents at the branch.
Personal loans are processed quickly and can be dispersed in a matter of hours to a few days. If your loan is pre-approved, then you can also get it in seconds.
PERSONAL LOAN ELIGIBILITY
Every lender that gives personal loans has its own set of eligibility criteria and policies that they adhere to. However, the basic eligibility criteria for personal loans may be similar. We have listed down some of the criteria that you must fulfil to be eligible for a personal loan.
- The borrower must be between 20 to 60 years of age.
- They must be a salaried employee with an MNC, public or private company or firm.
- The borrower must be an Indian citizen.
- The borrower must have a good credit score, preferably above 750.
- You must have a minimum salary of Rs. 25000 to Rs. 35000 depending on your place of residence. The minimum salary requirement is higher in metropolitan cities like Mumbai, Bangalore etc.
If you want to check your personal loan eligibility, you can easily do so on the lenders website by using a personal loan eligibility calculator.
DOCUMENTS REQUIRED FOR PERSONAL LOAN
When you apply for a personal loan, you need to know what are the documents required for personal loan. You will be asked for relevant documents that you must submit along with your loan application. Let us look at the list of documents required for a personal loan
KNOW YOUR CUSTOMER OR KYC DOCUMENTS
First and foremost, you will need to submit your KYC documents to the lender so that they can assert your identity. These are:
- ID proofs like passport, Aadhaar card, drivers license, Voter ID etc.
- Address proof like passport,Aadhaar card, drivers license etc.
INCOME PROOF AND FINANCIAL DOCUMENTS
Apart from KYC documents, you will also be required to submit documents that prove your income. Lenders need to be sure that you have a steady source of income and can repay your loan. Hence they will need income proofs. Proof of income documents are:
For salaried:
- Bank statement for previous 3 months
- Salary slips for the last 2 months
For self-employed:
- Previous 6 months bank statements
- Profit and loss balance sheets of business for last 2 years
- Proof of address of the business
- Proof of office ownership
- Proof of continuity of business
CONCLUSION
Thus, a personal loan can be a good option if you are looking for funds in a quick time. One of the biggest advantages of a personal loan is that it is an unsecured loan. You do not need to provide any collateral or security for the loan. But the flip side to this advantage is that your financial stability should be good enough, and you must have a steady flow of income. Additionally, your credit history and credit score must be excellent. The documents mentioned above will provide these details to the lender, and hence they can make a decision on your loan.
DISCLAIMER
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
