Personal financing has gained much traction in recent times for its ease of availability along with convenient features and favourable terms for the borrower. Given that these loans can be used for all purposes without any restrictions, borrowers tend to avail financing options like easy personal loan to meet their diverse funding needs. Also, these loans are collateral-free advances and do not require a borrower to risk their personal assets, giving them added perks to avail this funding instead of any other dedicated secured loan to meet financing needs.
Depending on the eligibility fulfilment of the individual, availing financing up to Rs.25 Lakh is possible under this loan segment. It allows him/her to meet big-ticket expenditures with ease, such as financing higher education, funding wedding expenses, investing in home renovation, and the likes. As the availability of a personal loan entirely depends on the applicant’s eligibility fulfilment as asked for by the lender. You must check if your qualify for the loan or not before borrowing. Below are given some standard requirements you need to fulfil to avail financng.
Eligibility Requirements for Personal Loan
Make sure to check if you meet the following requirements to get an easy personal loan approval.
- Depending on your occupation, you can either be a salaried or a self-employed individual to avail the advance.
- If salaried, you must be employed with a private/public sector company or an MNC carrying a minimum work experience of months in the present job. Also, the total work experience should not be less than a year.
- In case you are a self-employed individual, you must hold a business stability of. At least a year in the present venture. Also, the total experience of running the business should not be less than a year.
- You must hold a minimum monthly income based on your city of residence.
- The individual or/and business credit score must not be less than 700. A higher credit score improves your chances of securing low rate of interest on personal loan along with other favourable terms on the advance.
- You should be a residing citizen of India too with a residential stability of not less than a year.
Along with these requirements, your chances of easy personal loan approval also depend on the documents submitted along with their accuracy as per your eligibility. Let’s find out what would be the crucial documents needed to submit when applying for a personal loan.
Documents Required for Easy Personal Loan
- Towards KYC fulfilment, as required by your financial institution, you must provide the relevant identity and address proofs. They can include the likes of PAN card, Aadhaar card. Voter ID card, Driving License, Passport, Ration card, or any other valid documents as approved by the RBI.
- Based on your occupation, you also need to provide the relevant proofs. For instance, a salaried individual must submit their employee identity card when applying. Similarly, a business person availing the advance needs to provide the company’s incorporation certificate, GST registration certificate, and the likes.
- To confirm the minimum income requirements, bank account statements. And Income Tax returns filed for the required number of years are mandatory. Apart from that, a salaried individual must submit his/her salary slips for 3 to 6 months as needed. Self-employed applicants need to provide their businesses’ audited financial statements like the balance sheet and profit and loss statement.
While these are the common eligibility and documents required for availing an easy personal loan approval. You may be asked to fulfil additional criteria and paperwork based on your borrowing profile. It is thus best to check with your lender of such additional requirements and fulfil them before applying for the loan.