Here Are Documents That are Required for Personal Loan Procedure

Published: 15th May 2019 07:15 PM  |   Last Updated: 22nd May 2021 08:01 PM   |  A+A-

By Online MI

Are you facing any urgent cash crunch that your income, savings, and investments can’t cover? Don’t worry; you can now go for online personal loan apply procedure and avail quick funds up to Rs.25 lakh from leading banks and other lenders in the country.

Many people like you needing some urgent money opt for an instant personal loan. It is because the personal loan procedures are hassle-free and fast. Hence, you can get the required funds fast to meet your expenses.

If you have the required personal loan eligibility and can submit some basic documents, then you can get the loan approval without issues.

Also, the nature of a personal loan is unsecured which means that you don’t need to submit any collateral or security to get the loan. It is determined by your creditworthiness and eligibility, and hence, carries a higher personal loan interest rate.   

In the same context, you may be willing to know about personal loan eligibility and the documents that you need to submit to avail quick approval. If yes, then you can go through this post and know all about it and beyond. Read on!

A Quick Look at the Personal Loan Eligibility

Lenders want you to prove your eligibility for the personal loan to get the required approval. Have a look at some common personal loan eligibility parameters that a lender may want you to abide by. However, the personal loan eligibility criteria may differ from lenders to lenders.

●       The age of the loan applicant should be between 23-55 years

●       You need to be a resident Indian citizen

●       You should be employed with either an MNC, public or private limited company

You can also use the personal loan eligibility calculator at a lender’s website to know an exact amount that you can borrow as per your income and other factors.

Personal Loan Documents That You Need to Furnish

Along with meeting a lender’s personal loan eligibility criteria, you also need to submit some basic yet vital documents. Have a look at some standard personal loan documents required by a lender. It may differ from lenders to lenders as well:

✔        You need to submit KYC documents like Aadhaar card, passport, voter ID card, and driving license

✔        The employee ID card of the organization where you are currently working

✔        Last 2 months’ salary slips

✔        Bank account statement of the salaried account for the previous 3 months

Factors that may affect your personal loan eligibility

Other than the discussed eligibility and documents, a lender also checks some other key factors that may affect the eligibility. Such aspects contribute a lot to the overall personal loan procedures.

1) Your CIBIL Score

Your CIBIL Score is the first factor that may make or mar the personal loan procedures. If you have managed to maintain a strong Credit Score, then the lender may not have objections in awarding you with the quick loan approval. It means that you can easily manage the repayments, and hence, can be provided with the loan. Any of the personal loan applicants with Cibil Score in the range of 700-750+ can get the loan approval quickly. If you don’t have a robust Credit Score, then you need to improve it by paying off your existing loan EMIs and credit card outstanding on time. Once you start doing that, your CIBIL Score will start improving. You can then indulge in personal loan procedures after 6-8 months.

2) Your Age

The younger you are the higher will be the loan amount that a creditor will be willing to offer you. It is simply because you are left with more working years compared to an applicant in 40s or 50s. Having less workable years mean that you may not have the income consistency to repay the loan. Hence, it is better to opt for the personal loans apply facility when you are still young.      

3) Your Employment History

How consistent you have been at your work, and the reputation of your company also matters to lenders. Hence, you want to get involved in personal loan procedures, and then you should ensure that you have a consistent employment history. Also, working for a good company means that you will face no issues in repaying the loan amount. It would be suggested to have a work record of at least 1-3 years to get the loan approval easily.

You are now aware of the personal loan eligibility, factors affecting it and documents. Going through this post must have given you the confidence to approach the personal loan procedures with ease.

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