In present time, whether you need financing for education, travel, child’s marriage or any other expenses needing substantial funding, a personal loan easily comes to the rescue. These financing options have remarkably modified the borrowing habits of retail consumers with their ease of availability and simple application procedures. Today, with increasingly accessible financing, you can also receive approval of the funds against minimum personal loan documents.
However, personal loans are often provided by financial institutions as unsecured advances. Financing borrowers with any lack of collateral security significantly increases the lending risk of a financial institution. Lenders thus make it essentially mandatory for any individual to meet the minimum eligibility and document criteria to avail funding. You must thus make sure that you fulfil the requirements to experience hassle-free processing of your personal loan application.
Personal Loan Eligibility Criteria
Eligibility criteria for a personal loan can vary with the lender selected. Given that there are several lenders in the market, you would need to connect with your selected lending institution to check their specific eligibility requirements. However, thanks to an increasing competitive mindset among lenders, borrowers stand to benefit with requirements being simplified over the time. Below are given some of the standard eligibility requirements you would need to meet to avail a personal loan.
- Age: The minimum age requirement can vary between 18 and 23 years with different lenders. Some of the reputed financial institutions provide financing to individuals with maximum age cap of up to 57 years, which can be lower too based on the lender you selected.
- Occupation: You either need to be a self-employed or a salaried individual to avail the advance. Usually, salaried individuals need to be employed with a public, a private or a multi-national company with minimum current employment duration of not less than 6 months. The total employment duration should, however, be not less than 1 year. In the case of self-employed individuals, they should hold a minimum business vintage of 1 year. You would be required to provide necessary personal loan documents that would attest to your eligibility.
- Monthly income: Some lenders also minimum specify monthly income requirement for candidates. This requirement varies with the applicant’s city of residence, with tier-I cities requiring higher income and vice versa for tier-III cities.
- Credit score: As a personal loan is an unsecured advance, a minimum credit score fulfilment is a mandatory requirement. Depending on the lender, this requirement usually varies from 700 to 750, with higher scores always being preferable.
- Residential status: You must also be a residing Indian citizen with at least 1 year of stability for the advance.
Personal Loan Document Requirement
As paperwork for this advance follows attestation for eligibility fulfilment, the personal loan documents required usually include the following.
- Proof of age and identity: Any government-issued or authorised body-issued document with name, age and photo of the candidate qualifies as an identity proof. The documents usually include PAN card, Aadhaar card, Voter ID card, Passport, etc.
- Proof of address: Documents like Aadhaar card, Voter ID card, Passport, Ration card, and utility bills serve as address proof.
- Proof of occupation: A self-employed applicant must show proof of business registration and operation while for salaried applicants, employee ID and experience certificate issued by the employer would do.
- Income proof – You must provide your bank account statements and ITR as proof of income. For salaried class, salary slips are also eligible while self-employed applicants need to provide their business’ financial statements.
Once all the eligibility requirements are met and personal loan documents arranged, you can proceed to apply for the advance with your selected lender. Take care to fill up the application form correctly and send an online application for a streamlined and fast-tracked application processing.