Personal loan in India is an effective financial solution to meet your urgent need for cash. A personal loan is a short term unsecured loan that comes really handy when you have unexpected expenses to take care of. Personal loans can be used for various purposes that include consolidating credit card dues, setting up a new office, renovating a house, for wedding, purchasing business equipment, car or even for a much-awaited vacation and so on.
Table of Contents
- Why Take Personal Loans?
- Personal Loan Eligibility Criteria
- Documents Required For Personal Loan in India
- How to Apply For Personal Loans Online on ApnaLoan?
- Advantages and Disadvantages of Best Personal Loans
- Personal Loan Purpose
Why Take Personal Loans?
Personal loans seems a great way to offset any temporary cash crisis as it allows an applicant to avail loan without any typical pre-conditions on the usage of the loan amount. Personal loans have a fast quick approval as compared to any other loans, and usually, it gets approved within 24-48 hours.
Ease of Availability: Almost all the banks and NBFC’s offer best personal loans for their customers. The major reason to choose this financial product is that it is not very expensive and is available at a reasonable rate of interest which makes it a very lucrative option to overcome any immediate need of cash.
Minimal Documentation: Getting best personal loans requires minimal documentation as a major chunk of eligibility is based on borrower’s credit score, his/her financial track record and monthly income.
Personal Loan Eligibility Criteria
When an individual applies for a personal loan in India, lenders initiate a process, which is commonly known as eligibility check. The whole process entails a few pre-determined parameters with the help of which, lenders assess your eligibility to avail the easy personal loans in the first place, and eventually your ability to repay the debt on time. However, the criteria usually vary across all the lenders and Non-banking financial institutions. Some of the common eligibility criteria that most of the lenders want you to meet for personal loan process are given as follows-
Credit Score: Borrower’s credit score is one of the primary factors that determine his or her eligibility for a personal loan in India. A credit score is calculated on the basis of your past financial track record, i.e. loans sanctioned in the past and whether you have repaid them on time or not. Usually, a credit score of 750+ or beyond is considered good as it drives up your chances for availing the desired loan amount.
Monthly Income: Another important factor that ascertains the smooth personal loan process is your monthly income. Most of the lenders want proof of borrower’s financial viability to repay the debt on time, thereby nullifying the possibility of defaulting. Hence, if an applicant is salaried the minimum monthly income required to apply for the easy personal loans is INR 15,000 and in case of self-employed, it depends on the turn-over.
Age: The minimum age required to apply for a personal loan is 21 years and the maximum age of an applicant at the time of loan tenure ends needs to be 65 years. Younger the applicant is more smooth the personal loan process is, and more probability of getting a loan. However, for self-employed and salaried, the age criteria differ from one lender to another.
Employment status: Your current employment status and job stability are also one of the important factors for lenders to decide on your loan eligibility. If an applicant is working for a reputed company for a couple of years, chances of lenders considering him or her as a viable prospect are more. And, being a part of a reputed company or a company who has a high turnover becomes an asset for an applicant as well when it comes to applying for a personal loan in India.
These are some of the common factors that an applicant needs to comply with it before applying for personal loans online as it will eliminate the chances of your rejection if any.
Documents Required For Personal Loan in India
While planning to apply for a personal loan, it becomes imperative for one to be aware of documents that are required for a hassle-free personal loan process. Here is the checklist of some common documents, that an applicant needs to prepare for-
Documents Required For Salaried
- Identity Proof– For the purpose of identity, you have to submit any one of the documents such as PAN Card, Aadhar Card, and Driving License, issued by the government department.
- Residential Proof: Documents that are generally accepted include Voter ID, Aadhar Card, and utility bill such as (telephone or electricity bill).
- Salary Slip
- Form 16 or a copy of IT return with the computation of total income.
- Bank Statement of the latest 6 months.
- Two recent passport size color photograph
Documents Required for Self-Employed
- Identity and Residential Proof
- Duly filled and signed the loan application form with recent passport size color photograph
- Proof of office documents
- Copy of last three years IT returns with computation of total income, certified by a chartered accountant.
- A Copy of Profit and loss statements, balance sheet audited by CA.
- Proof of continuity of business, etc.
Well, with Apna Loan easy personal loan process, now you don’t have to have to step out of your home and go all the way to a bank branch to furnish your documents to complete your application. This paperless documentation process is faster and simpler.
How to Apply For Personal Loans Online on ApnaLoan?
All thanks to technology and digitization, as applying for a personal loan is no more restricted to visiting the lender’s branch number of times. That means, now you can apply for personal loans online too. Once you understand the whole personal loan process and agree to its terms and conditions, the lender collect your requisite documents and initiate the further process which includes checking your CIBIL score, monthly income, age, etc. Based on your input, the lenders make a call to you. All you have to do is fill the loan application form online, and submit the required documents. The respective lender will get in touch with you directly, and you can check the status of your best personal loans through Email or SMS. With Apnaloan, your personal loan process becomes super easy, transparent and hassle free, as it includes the minimal documentation. As now you can apply for personal loans online from any part of the world and at any given point of time.
Advantages and Disadvantages of Best Personal Loans
Personal Loans is a quick fix to a wide array of both professional and personal needs, however it has some certain pros and cons, which you must know to arrive at a smart decision-
- Multi-Purpose: The major advantage of easy personal loans is that it is multipurpose. It can help you to meet your number of obligations, no matter their type of scope. From allowing you to fund your child’s education expenses to buying a new car, with best personal loans, you don’t have to worry. That’s why it is also termed as the Jack of all trades.
- Quick Approval: Today several banks and NBFC’s have started to fast-track the personal loan process That simply means that a borrower can take out the best personal loans within 24-48 hours, considering that you complete all the documentation and comply with the lenders eligibility parameters. There are some lenders who even offer pre-approved easy personal loans with e-approvals.
- No Collateral: Unlike other loans, with easy personal loans a borrower doesn’t have to pledge any collateral any collateral or asset to be eligible for it. You can easily apply for best personal loans as long as you hold a good credit score.
- Adequate Loan Amount: There is no fixed capping on the usage of personal loan in India unlike other secured loans. This simply means that an applicant can apply for best personal loans, and hope to avail the desired loan amount to meet any obligations, considering you meet the set eligibility criteria.
- High Rate of Interest: Usually, best personal loans are subject to higher rate of interest, and because of this simple reason a borrower don’t need to put any assets on the line.
- Stringent Eligibility Parameters: A personal loan is unsecured in nature and every lender generally looks at your appropriate monthly income before approving your loan application. In addition to this, your CIBIL/Credit score plays a huge role; it can make your chances of availing the desired best personal loans.
- Pre-payment Penalty: Almost all the lenders charge pre-payment penalty on personal loan in India if a borrower chose to close or repay the loan amount before the decided tenure.
Personal Loan Purpose
Easy Personal Loans is also known as an all-purpose loan as it can be used for fulfilling various legitimate personal needs that include:-
- Higher Studies: Students and their parents can choose easy personal loans to bear the rising educational expense, so that lack of finances doesn’t become a hurdle.
- Marriage in the family: A personal loan can come handy to cover the costs of your dream wedding. It is an unsecured loan that offers minimal documentation, and quick disbursal. With Apna Loan easy interface, now you can submit the mandatory documents for personal loans online. In addition to this, you can take personal loan in India for various other purposes such as:
- Buying a car,
- Medical emergency,
- Dream vacation,
- Furnishing a house, or
- Purchase any high end lifestyle products.