Availing a personal loan has become simplified today, with applications completed in a few simple steps and approvals coming quick. These improved facilities have made the advances more accessible to individuals than ever. It has also made personal loans the preferred financing options for people in needs of urgent funding. It may get difficult to secure other types of advances instantly; but with personal loans, it is hardly a constraint as approvals follow a few minutes after application and disbursal in the next 24 hours. You only need to hold the required eligibility and provide necessary personal loan documents for fast processing.
When applying for the advance, it is thus crucial to be well aware of the documentation and eligibility requirements you would need to fulfil. It is also advisable to know the complete loan application process so you complete each step without any hassle and send in your loan application within time.
Eligibility Requirements for Personal Loans
Financial institutions provide personal loans to both salaried and self-employed individuals. As the two occupations differ significantly, the eligibility requirements for concerned individuals vary too. Below are elaborated the eligibility criteria for each category.
– For self-employed professionals and non-professionals
A self-employed professional or non-professional must be between the age range of 25 and 70 years. He/she should carry a business vintage of at least 5 years, with at least a 3-year stint in the current operations. Individuals must also hold a credit score of 700 or above and be residing citizens of India with a stability of not less than 1 year.
– For salaried
In the case of salaried individuals, they must be employed with either a public/private company, or an MNC. They should be in the age range of 23 to 58 years with a Indian residential citizenship stability of one year at the least, as well as a credit score of 700. Further, applicants also need to carry a minimum employment experience of 3 years, with at least 1 year in the current employment.
While these were the common outlines for personal loan eligibility requirements, they may vary a bit from one lender to another. You may thus be asked to fulfil additional criteria based on your borrowing profile. It is thus best to confirm with your lender about any added requirements.
List of Personal Loan Documents to Submit
To fulfil your eligibility requirements, you need to provide documented proofs. Lenders also require individuals to complete some essential paperwork to abide by necessary policy regulation as well as for their own records. Some common personal loan documents needed for both salaried and self-employed applicants include the following.
– Identity proofs, such as Aadhaar card, PAN card, Voter ID card, Driving License, Passport, etc.
– Proof of address, such as Voter ID card, Ration card, Aadhaar card, Utility bills, Passport, etc.
– Income Tax return filed for the required number of years
– Bank account statements for the required number of months
In addition, salaried employees need to complete additional paperwork like providing their employee ID cards, salary slips, etc. For self-employed individuals too, proof of business vintage, proof of income, audited financial statements. And such other personal loan documents as asked for by the lender need to be submitted.
The Complete Personal Loan Application Process
The process of personal loan application can be completed both offline and online. The latter, however, is quick and convenient. Here are a few steps you can follow to apply for the loan.
- Visit your lender’s website and navigate to the personal loan page.
- On the page, find out the application form through the ‘Apply Now’ option.
- Fill up the form with necessary personal, financial, and occupational details, and provide your loan requirements.
- Submit the forms with the necessary documents.
Once the application process is complete, an eligible individual should receive approval for the advance almost instantly. Applying through the pre-approved offer hat lenders provide further. Brings down the personal loan documents submission to minimal, thsu fast-tracking the process.