Are you thinking to get a Personal loan for any of your personal financial requirements? But, really confused as to What are the things to consider before applying for a personal loan? If yes…Then, you have landed at the perfect place, where you shall get an answer to all your queries related to Personal Loan: Eligibility criteria and the Documents required for applying for a personal loan.
You shall also become aware of applying for Personal Loan in an easy manner and get instant approvals as well.
When it comes to meeting your personal needs, you often resort to different financing options to help you manage your financial requirements especially the immediate ones. May it be a home renovation you are planning for, a holiday you wish to enjoy, a family function you want to organise or an education expense for your child and so on. This is when a Personal loan comes handy and rescues you.
Personal loan shall help you overcome any of the financial hurdles that you tend to face. But, don’t turn personal loan itself into a financial hurdle…keep reading further to know the details…
Personal loans are unsecured loans and get processed faster if you meet the eligibility criteria and have a good credit background.
So, if you have an immediate financial commitment but are falling short of funds, applying for a personal loan can help solve your financial problems.
But, wait its not as easy as it seems to be… Although getting a Personal loan seems to be a great tool to meet your immediate financial needs and turn your dreams into reality. You might be getting promotional calls offering variety of Personal loans at attractive interest rates quite often.
These days the application process is quite simple, you can even apply online for personal loans easily from a Private or a Public sector bank or even a financial institution. That seems quite interesting! Isn’t it!
But, you have to be very careful and must consider few important points before applying for a personal loan so that you don’t land yourself in unnecessary debts and troubles later on.
Things to consider for Applying for Personal Loan:
1. Apply for genuine needs:
This is the first and foremost thing that you should consider before applying for a personal loan. Ask yourself: Do you really need to apply for personal loan ? or Is it just that you are getting attracted looking at the easy availability of funds. Personal loan or any loan for that matter has to be repaid back that too with huge interest amount.
So, the decision should be taken cautiously and for genuine financial needs. Loans taken just to cater to your offline or online shopping needs and luxury living may not be desirable anyways.
2. Attractive Interest rates:
Checkout the interest charged by the lender. The interest rates are usually high in case of personal loans. Compare and analyse the interest rates offered by different banks and institutions. Look for relatively low interest rates that you can bear easily. Too high interest rates may not be manageable for you to repay. Consider the interest rates prevalent in the market before taking the final decision.
Don’t miss to learn What is Bank rate? How it differs from Repo rate?
3. Sound Credit background:
Maintain a good credit score for yourself to get easy approvals for your personal loans.Having a sound credit history can solve your various financial problems. But, any ignorance or even a credit card payment default can affect your credit score substantially. So, be careful and make timely payments of all your dues.
Having a good credit score or improving your CIBIL Score shall enhance the opportunity for getting easy personal loans.
4. Looking for the Best Deal around:
You may be offered a variety of deals tempting you in one way or the other. Make sure you go through all the terms and conditions minutely beforehand. Strike the best deal that’s available comparing all the pros and cons that may have an impact on your decision.
5. Penalty in case of delay or default:
The penalty in case of delay or default in repayment of personal loan EMIs is usually quite high. Check in advance the consequences of any delay/default in making repayment. In fact, this penalty situation needn’t arise if you are regular in paying your outstanding dues.
6. Banks or reputed institutions:
You should apply for personal loans from banks or renowned companies or institutions only. Be alert and aware and protect yourself from any misleading offers from unknown and not so popular agencies.
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Eligibility Criteria for Getting Easy Personal Loan:
You have to meet certain eligibility criteria before getting your personal loan application approved. These eligibility norms may vary slightly from bank to bank or other institutions based on the lender you choose and certain other factors.
We have highlighted the normal and most common eligibility requirements here:
1. Age criteria:
The normal age group that are offered Personal loans are 21 years to 60 years. This age limit may also differ from bank to bank.
2. Income criteria:
There are certain minimum income requirements like persons having a certain minimum salary/income like Rs.15000-Rs.20000 per month and so on shall have access to such loans. This may vary for different institutions offering personal loans as well as different areas/cities. Higher the income, better the chances for quick approvals of personal loan.
3. Who can apply:
This includes employees of public sector,private sector companies and Government sector employees. Further self employed individuals like doctors, CAs, and other professionals are also covered here.
4. Credit rating:
A Good CIBIL Score is vital in deciding the credibility of a person while granting loans. A person having good credit score may have easy access to personal loans. CIBIL score ranges normally between 300-900. However, if you have a CIBIL score between 750- 900 you are considered credit healthy and your chances of getting instant approval on personal loan are quite high in that case.
5. Existing EMIs (if any):
If you have any present loans going on, this may also affect your eligibility to get a personal loan. You need to prove reasons and ability to manage additional debts.
6. Repayment ability:
Borrowers financial profile is equally relevant as far as loan servicing facilities are concerned. Your assets, liabilities and other expenses also affect your eligibility to get easy loan.
Documents required for Applying for Personal Loan:
- The Application form duly filled and signed by the applicant.
- Your ID Proof like PAN, AADHAR, Passport.
- Your Address Proof AADHAR, Passport.
- Your Age Proof: Your birth certificate.
- Your Photograph is also required.
- The Income Proof ( very important ) to justify the income you have mentioned in the form.
- Your savings bank account statement to support your other documents.
- Your signature verification proof may also be required.
If you are self employed, the proofs and supporting documents to be submitted may slightly vary from those that are required to be submitted by salaried employees.
A Final Note on Personal Loan:
Do you have a good income and a healthy credit score? Also, do you meet all the important eligibility criteria as specified? If yes, applying for a personal loan may not seem to be difficult task to you. You can get instant approvals as well as quick loan disbursements at your doorstep.
So, are you thinking to apply for a personal loan? If yes,be careful with all the above points. And yes…not to forget paying your EMI’s on a regular basis to avoid piling up of your financial debts at a later stage.
Do share your feedback on any of the personal loan options you have availed. Any crucial points that the readers of our blog should know, go ahead and share it in the comment section below.
Your one correct advise or personal experience can help our readers take an informed decision. Go ahead and make them lead a good financial life.
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