In today’s fast-paced world, personal loans have become a versatile financial tool for individuals looking to achieve various goals, from consolidating debt to funding major expenses. Personal loans don’t have limitations when it comes to their usage. Many borrowers prefer personal loans when they are facing financial shortages as these loans offer flexibility and convenience, but to access this financial resource, understanding the eligibility criteria is essential. Here we have explained the eligibility criteria for personal loans in detail.
Factors that Affect Eligibility for Personal Loan
Eligibility criteria can vary from person to person but there are a few factors that affect the eligibility of a personal loan.
- Credit Score
- Monthly Income
- Work Experience
- Current Liability
- Lender Relation
Eligibility Criteria to Avail Personal Loan
Applicant age
When the loan matures, the applicant’s maximum age should be 58 years old and minimum age should be 21.
Work experience
The candidate must have at least one year of work experience, with at least two months of consistency with the current employer.
Income
To be eligible to apply for a personal loan, the applicant’s net monthly income must be at least Rs. 30,000.
Employer category
The candidate must be a full-time employee for a business, LLP, private or public limited corporation, or similar entity.
Citizenship
Only Indian citizens are eligible for personal loans.
Credit score
A minimum credit score of 750 is typically required by lenders in order to be authorised for a personal loan. To improve their credit score, people should avoid payment defaults, maintain a low credit utilisation ratio, and make their loan repayments on schedule.
Documents Required to Avail Personal Loan
Identity Proof
- PAN card
- Aadhaar card
Address Proof
- Electricity bill, rent agreement or Indian passport
Income proof
- Salary Slip for the last three months from the current employer
Bank account statement
- Original bank statement in PDF for the last three months.
Employment proof
- Offer letter
- Monthly salary slip
- Copy of the employment contract
How to Apply for Personal Loan
Below are the steps to personal loan apply online.
- Visit the official website of LoanTap or download the official app from the Play Store or App Store.
- To submit an application for a personal loan, click on the “Apply Now” tab on the homepage.
- Choose your job profile. Choose if you are a business owner, an employee, or a self-employed individual.
- Select the purpose of your loan, like a home loan, personal loan, wedding loan, etc.
- Now enter your email ID and current city of residence.
- Enter all other relevant data, such as monthly income, active loans (if any), and the kind of current residence.
- Upload the necessary documents, such as bank statements, salary slips, and property ownership papers, etc.
- Enter your PAN Card number and birthdate.
- After all the required details are entered, they will be verified, and after the approval, your loan amount will be sanctioned within 24-36 hours.
Conclusion
Obtaining a personal loan can be a simple process with the right knowledge and preparation. By focusing on factors such as creditworthiness, income stability, and debt-to-income ratio, you can enhance your eligibility for a personal loan. LoanTap is renowned for its hassle-free loan approval and minimal documentation requirements, which can expedite and simplify the loan application process. With careful consideration and informed decisions, you can secure a personal loan that suits your financial needs and achieve your financial aspirations.
