What Eligibility Criteria Is Required for Personal Loan?

Posted by Arwind Sharma on August 21st, 2017

Before applying for a personal loan, it is important to learn more about the eligibility criteria for personal loans. This will help you get more information about whether you meet the eligibility criteria or not. There are several benefits of personal loans and they come in handy whenever anyone needs immediate cash to take care of medical emergencies, wedding expenses, higher education needs, vacations with loved ones and what not! Personal loans can even be used to consolidate existing debt or renovate/repair your home.

However, the personal loan eligibility criteria is something that you will have to adhere to in order to qualify for the personal loan. Here are some basic details about personal loans:

• Loan amounts usually range between Rs.50,000 and Rs.25 lakh. It basically depends on the bank/NBFC in question.

• Processing fees are usually between 1-4% of the loan amount.

• The EMI will comprise of Principal and Interest components.

• The Loan will have a fixed repayment schedule usually between 1-5 years.

Here is some basic eligibility criteria for personal loans:

• The applicant should be a salaried/self employed professional

• The age should be between 22-59 years

• There should be a bank account and a net monthly income

• The applicant should have a good credit history

• The loan should not have been rejected in the last 3 months

• The applicant should have the capacity to repay the loan every month

Here’s taking a look at the necessary documents required for personal loans:

• Passport size photograph

• Filled application form which is signed

• Latest salary slips for last 3 months (should indicate gross salary break-up)

• Bank statement for 6 months (should reflect salary credits and should be updated within last 15 days)

• Identity Proof- PAN Card/Driving License/Employee ID Card and Signature Proof in case of Government employees/Voter ID Card

• Address Proof- Driving License/Passport/Voter ID Card/Ration Card/Bank Statement/Telephone Bill/Rent Agreement/Water or Electricity Bill

• Existing Loan Schedules & Bank Statement reflecting EMI debits

It is recommended that you use an eligibility calculator before applying for a personal loan. This will help you determine how much you can get in terms of the personal loan amount, depending on your income and other basic details. Scrutinize the eligibility criteria and required documents carefully and make sure that you have everything in order prior to applying.