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How To Apply Personal Loan

Personal Loan

by Nithya

A personal loan is a line of credit which could be used to cover a variety of financial objectives. You will not need to retain any collateral or a guarantor for this type of loan. However, acquiring this kind of loan is difficult because you must fulfill the lender’s requirements. Lenders in India often use a similar criterion, but this can differ depending on a variety of criteria. You may also use a personal loan eligibility checker to verify potential personal loan eligibility before obtaining loans. 

A personal loan should be a no loan that is granted based on your qualifications, such as credit score, income, work type, and other factors. This sort of loan doesn’t need you to put up your assets and is repaid in full on regular payment. Because this is an unsecured creditor, the interest rate is typically higher than for secured debt. This loan can be used to cover any unforeseen financial needs, such as medical expenses, education fees, house renovations, and etc.

Prior to the implementation of GST, the banking sector was subject to a 15% service tax; however, with the new tax reform, banking services are now subject to an 18% tax. With personal loans being one of the most popular lending products, let us take a closer look at how GST affects them.

Criteria for personal loans include

Salary: Different monthly payment criteria are used by banks and online lenders to calculate the amount owed. Some lenders set a minimum monthly income demand of Rs. 15,000, while others set a monthly income requirement of Rs. 25,000. The salary criteria may also vary depending on the location of your job. Lenders will look at your job security or business to see if you’ll be able to pay it back your loan. If you have worked for a public or private company for more than a year, the lender will approve your loan application right away. Most companies give loans to people between the ages of 21 and 58. 

How to Check Your Eligibility for a Personal Loan Online

  • Before applying for a personal loan, you may now evaluate your creditworthiness by checking your qualification online. 
  • Use a loan eligibility calculator to see if you qualify for a personal loan.
  • Names, mobile number, city, salary, pin code, email, employer name, and PAN number are all required fields.
  • Finally click submit, and also the amount of your loan qualification would be displayed online.
  • After that, anyone can make an application.

Obtaining a personal loan necessitates the submission of certain documents

To get your loan application granted, you need to submit the required papers. If you’re applying online, you can use the lender’s website or app to submit scanned copies of your documents.

  • PAN card, passport, or Aadhar card as photo id.
  • Passport, utility bill, Aadhar Card, or rent agreement are instances of address evidence.
  • Proof of earning a pay stub and a bank statement since the last 6 months.
  • 2 passport-size pictures, as well as any supplementary documents that may be required.

When applying for a personal loan, criteria include your credit history, location, and income might have had a serious influence. As a result, it’s critical that you have a regular income and a good credit score to avoid getting your loan agreement refused. Also, check personal loan interest rates online and use a personal loan eligibility calculator to establish your loan eligibility limit whenever seeking for a private loan.

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