Personal Loan Eligibility and Requirement

Personal Loans are regarded as the most popular financial products today because of the following reasons-

Personal loan eligibility criteria are very simple. 

You are an Indian citizen or resident 

You should be over the age of 21 years or less than 60 years.

You should be earning a net income of more than Rs 30000 per month

If you meet the eligibility for a personal loan, you can apply for an instant personal loan.

Getting an instant personal loan is very easy nowadays if you fulfil the personal loan eligibility criteria.

If you want an instant loan apply online. Just go to the app and fill up your requirements.

You will need to upload the following documents –

  • PAN Card
  • Aadhaar Card/ Driving Licence/ Passport
  • Salary slips of last three months
  • Bank Statements of last six months of salary account

The lender will assess your documents. If you meet the personal loan eligibility criteria and you are above the minimum CIBIL score for personal loan, your loan will be approved. For 95% chance of loan approval, your minimum CIBIL score for personal loan should be above 750.

Once approved, the loan will be disbursed to your mandated account.

Getting an instant personal loan needs no collateral. This is the main reason why the younger generation is a big fan of instant personal loans. They have no time to wait or waste. Whenever the need arises they want to get an instant loan online. That is why they prefer an unsecured personal loan.

What is an instant personal loan?

Several lenders offer an instant personal loan where the personal loans are disbursed very quickly. You can use the LoanTap app to get a quick disbursal of your personal loan.

Instant loans are of great advantage in emergency situations. When you are in a difficult situation and need cash on an emergency basis, instant loans are a lifesaver. 

How to apply for a loan online?

You should fill in the online application for the personal loan and upload the necessary documents. If your documents are in order, the personal loan application will be approved and the loan disbursed quickly. Getting a loan online is the best way to address a short term fund need.

What is special about the unsecured personal loan?

Unsecured personal loans are collateral-free. There is no need to pledge any asset against this loan. This is very convenient for young working professionals who have just started out on a career.

What is the minimum CIBIL score for a personal loan?

CIBIL score is a numerical summary provided by TransUnion CIBIL of your credit history. It is based on the credit history of the borrower and reflects the creditworthiness. It is a number between 300 and 900 where 300 is the lower end and 900 the higher end. Around 300-549 is considered poor, 550-749 is fair and over 750 is considered good. It is best to have as high a CIBIL score as possible.

If you have loan requirements, you will need to consider several factors before applying for a personal loan.

  • Compare different lenders – Check out different lenders and their personal loan offers. There may be several promotional offers. You can compare all offers available and make the right decision regarding your personal loan requirements.
  • Bargain for the best interest rate – If you have a high CIBIL score, you are in a better position to bargain for the cheapest interest rate for your instant personal loan.
  • Check hidden charges – It is important to check for hidden charges which may be included in the fine print. This will help you to avoid additional costs on your personal loan.
  • Read the foreclosure clause – Always read the foreclosure clause in the personal loan agreement. It will provide the details of the penalty that will be charged in case you prepay your personal loan before 6 months. Normally, lenders do not charge any prepayment penalty if you foreclose after 6 months.
  • Do not apply to multiple lenders – If you apply for a personal loan to multiple lenders you will be considered desperate and you may end up having your loan application rejected.

How should you use a personal loan EMI calculator while applying for an instant personal loan?

Personal loan EMI calculator is a very useful feature on personal loan apps. It helps you to calculate the EMI payable for various loan amounts, tenures and interest rates. You can calculate for different rates and tenures and work out the EMI. Based on your monthly budget, you can decide whether the EMI is affordable. if not you can increase the tenure to lower the EMI. 

Why should you keep the Debt Income Ratio at less than 40%to get an instant personal loan?

It is important to keep the Debt Income Ratio at less than 40% so that you can meet your financial obligations comfortably. If the ratio exceeds 40%, it will be difficult to manage the EMI payouts. Lenders avoid giving personal loans to those with high debt-income ratios.

A lower Debt Income Ratio would let you manage your monthly EMIs comfortably. 

How can you manage personal loan repayments efficiently?

Once you take an instant personal loan, it is important to know how you will manage the repayment. You should make your EMI payments on time and without default. It is best to set up an auto-debit facility in your bank so that the amount is debited on the due date without fail. It is important to keep that account funded so that the debit is honoured.

Manage your monthly budget well.

Reduce discretionary spending.

Plan your expenses at the beginning of the month.

Do not give in to temptation.

Do not use your credit card if you have taken an instant personal loan.

You have been given an instant personal loan because you meet the personal loan eligibility criteria. You should be responsible for making the repayment on time. This will boost your minimum CIBIL score and give you a line of credit when you need it the next time.

Getting an instant personal loan is easy. It is difficult to repay it back responsibly unless you have financial discipline. Never take too many personal loans at the same time. Manage your expenses well and never fall into the vicious cycle of managing multiple debts at the same time.