personal loan documents

Secure Required Funds Easily: Personal Loan Eligibility and Documentation

Securing a personal loan is always the first choice for individuals looking for instant funds. As per data from Care Ratings, the Unsecured loans segment grew by 140 bps in January 2023 from a year ago. Personal loan processing is quick in the technological era by following a 100% paperless process. Each step – from making an application to loan disbursal – can be completed online. 

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For seamless loan processing, customers should apply after considering personal loan eligibility criteria and documentation as per the lender’s policy. 

Personal Loan Eligibility 

  • An Indian resident aged between 21-60 years 
  • Minimum salary should be between Rs.20,000 – 25,000. 
  • The CIBIL score should be 750+.
  • The applicant should have an overall work experience of more than one year.

Personal Loan Documentation 

Lending institutions leveraging technology for loan processing requires minimal personal loan documents. The set of documents includes: 

  • Identity Proof
  • Address Proof 
  • Age Proof 
  • Latest 3 months’ Salary Slips
  • Past 6 months’ bank statements
  • Form 16 or ITR Acknowledgement 
  • Income Proof

Four Easy Steps to Apply for a Personal Loan Digitally 

  • Provide an active phone number to receive the OTP (one-time password).
  • Enter the applicant’s personal, income, PAN (Permanent Account Number), and bank details. 
  • Enter loan details. The personal loan amount can be as high as 25 lakhs which can be repaid between 12-60 months. 
  • Upload the relevant documents as mentioned above.

This way, customers can apply for a collateral-free personal loan online after checking eligibility with the lender and keeping the required personal loan documents handy. 

Also Read: What You Need to Know About Interest Rates on Unsecured Business Loans in Bangalore

How To Avoid Risk of Missed EMIs

Collateral-free funding options, fast approval, and versatility are a few driving factors for increasing personal loan outstanding. Borrowers must ensure that they pay each EMI (Equated Monthly Instalments) on time to avoid a negative impact on their credit score. Delayed EMIs lead to penalty charges and fall under the minor default category.

Here are a few crucial points that can help to avoid the risk of delayed payments:

Apply for an amount that fits in their budget for easy repayment

Before applying for a Personal Loan, loan aspirants can check the monthly EMI using an online personal loan EMI calculator. Most lenders offer this calculator on their official website for free.

Choose a convenient tenure

Individuals with a low monthly income can consider a long-term repayment tenure. It helps them to reduce the loan EMI. Borrowers can repay a personal loan in easy and small EMIs in a convenient tenure between 12-60 months.

Be proactive

If borrowers suspect they will not be able to pay the next EMIs on time, they need to contact their lending institution before the due date. They need to explain their financial situation and check if the lender can temporarily help and stop the EMI. If it is impossible, borrowers can request the lender to reduce the EMI for a few months. The lender can honour this request, especially when one has a clear credit history and a good relationship with the lender.

These are the major steps that one can take to avoid the risk of missed EMIs for an online personal loan and maintain a spotless credit history for further favourable loan terms. Apply for a loan as an informed user and get ready with the personal loan documents required for quick processing.

Also Read: 4 Tips to Manage Your Personal Loan EMI Payments in a Better Way

Personal Loan Disbursement: A Brief Guide

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The onset of the digital era of banking along with increased usage of debt financing for personal purposes has led to an increase in usage of personal loans. Personal loans are being obtained for a wide variety of reasons from weddings and vacations to business and down payment for a house. Since personal loans do not require any collateral and need bare minimum documentation, such loans have become very popular.  (Checkout personal loan documents checklist)

Getting a Personal Loan

Personal loans in India can be obtained either offline or online but the online segment is gaining traction lately. Such loans have seen a processing time of less than a few hours later once the application is made. On verification of the application, KYC process, and checking the CIBIL score, a personal loan can be obtained instantly.

Loan Disbursement

The amount of disbursal may differ based on the type of loan as well as any fees being charged by the bank. While this does not change the loan amount, the total payment received by you may differ. Loan disbursements are also made through cheque or demand draft mode however that is slowly becoming obsolete.

Loan Repayment

Once the loan is disbursed, repayment for the same will be either through ECS or a standing instruction. EMI and interest payment for the same can be determined using a personal loan EMI calculator. Such a calculator can prepare the applicant for the total monthly repayments to be made. Any default on such repayment can affect the CIBIL score and the user must be extra careful regarding repayment of such loans.

Must Read: How to choose the best personal loan to match your needs?

Make Diwali the Festival of Home Decor With a Personal Loan

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Diwali is the best time to purchase gold, invest in new garments, buy gifts for your relatives, or acquire a new property.

Let’s make this Diwali a little different.

Give your home the makeover it deserves. Surprise your family, neighbours, friends, and relatives by renovating your home. After all, what is Diwali without a sparkle?

However, the cost of home renovation can often be higher than purchasing gold or buying gifts. Not to worry, as an instant personal loan can provide you with funds you require to give a dazzling new look to your house exteriors or interiors. An instant personal loan is a type of unsecured loan which does not need any collateral. Instant personal loan eligibility is the simplest among all loans. You can upload the require documents for personal loan online and get the funds in your account within a few hours.

The extended repayment tenure of an instant personal loan ensures that the EMIs never seem a burden. Additionally, by repaying the loan EMIs before the due date, you can increase your credit score, which will make you eligible to receive additional discounts in future loans or cards.

You can use the personal loan funds to paint your house or modernise your kitchen by installing a kitchen chimney or buying a dishwasher. You may also buy a washing machine, a room heater, an air-conditioner, or design your home with fancy lights. Alternatively, you can be a little creative and redesign your garden.

Before applying for an instant personal loan, you must compare the rates offered by various lenders. The best way to find out who is offering the best rates is by checking their personal loan eligibility and using a personal loan calculator.

Getting the best rates and redesigning your home can be easy. Make this Diwali the festival of home renovation by sprucing up the interiors and exteriors.

Must Read: A Checklist to Check before Paint your walls in this festive season

What To Do Before Applying For A Personal Loan?

personal-loan-disbursement

A loan can be used for various purposes, and in the 21st century getting a loan has become a hassle-free process. There are situations in which a person might need a loan for multiple uses, and in a short period. This is where personal loans can come to your resume. Easy documentation and quick disbursal has made them very popular among people but be wary of personal loan interest rates. People must have to keep the documents required for personal loan ready for easy approval of loan process. Always use a personal loan eligibility calculator to tally your calculations with that of the lender.

If you are going to apply for a Personal Loan soon, keep these points in mind.
  • Research

Do your research on which bank offers you a loan on terms that you can agree with. Many people end up with the wrong lender and have difficulties down the line. It would help if you choose a lender with an interest rate and late payment fees that you will be able to cover. Different banks and lenders have different rules and interest rates. Find the one that suits you.

  • Keep Your Paperwork Ready

Sometimes much paperwork is involved; luckily for you, personal loans do not require a large amount of paperwork, and the process is expedited due to this.

All you need is an identity proof, age proof, address proof, salary slips, and an income certificate.

  • Credit Score

Since this is an unsecured loan, it is necessary to have a good credit score and history. Personal Loan Interest rates are usually higher than that of other loans, so make sure you pay the EMIs on time.

These are the things that one should keep in mind before applying for a personal loan.

Must Read: How Fintech Lenders Changed The Landscape of Personal Loans?