Personal loans are unsecured credits popular as a short-time financing option in India. It is by far one of the most availed monetary products available in the market, gaining approximately 41.6% incremental growth during the fiscal year 2018. Instant personal loan overtook other forms of non-food credit in the recent years, thanks to its affordable interest rate, quick approval and disbursement procedures, minimum documentation, transparent fees, and easy-to-meet personal loan eligibility criteria.
A prospective borrower can apply for a personal loan if he meets only the essential eligibility requirements set by the financial institution. Let’s take a look at those requirements.
Eligibility Criteria For Personal Loan:
The eligibility criteria can be primarily divided into three categories; age, nationality, and occupation.
Age – Most lenders look for candidates between 23 and 55 years of age. The recommended age range may change according to their employment; for example, a self-employed person may have to fall within an age bracket of 22 to 55 years.
Nationality – One of the vital eligibility criteria for personal loan is an applicant’s nationality. An applicant must be a residing Indian citizen to avail such a credit.
Occupation – Financial institutions offer personal loans to both salaried and self-employed individuals. Salaried applicants should be working with an MNC, public, or a private company, and should earn a minimum net salary to be eligible for an advance.
The minimum salary requirement mainly depends on the residential city of the applicant. It can vary between financial institutions; for example, Bajaj Finserv requires a minimum salary of Rs.25,000 for an instant personal loan. Self-employed individuals should have a business vintage of at least three years to be eligible for a loan.
Bajaj Finserv offers several customer-centric features and benefits with their personal loan. They offer a large loan amount of up to Rs.25 lakh with a flexible repayment tenor, which makes it easier to pay off the debt. Minimum documentation along with instant approval and disbursal ensures a borrower receives the loan amount within 24 hours of approval.
Bajaj Finserv also provides pre-approved offers for unsecured credits like personal loans and business loans, secured advances like home loans, and various other financial products. Such offers not only simplify the process of seeking funds but also help reduce the overall time consumed. You just need to share some essential details online to check your pre-approved offers.
Besides meeting the required personal loan eligibility criteria, an applicant also needs to submit the necessary documents. These include:
Employee ID card for salaried individuals.
Salary slips of the previous two months for salaried individuals.
Proof of business vintage for self-employed applicants.
Bank account statement (of salary account for self-employed) for the last three months.
Income Tax return of the previous year duly audited by a CA for a self-employed individual.
Features and Benefits of an Instant Personal Loan:
There are several reasons why an individual should go for a personal loan. This form of advance comes with zero end usage restrictions, which allows a borrower to utilise the amount according to his or her unique requirement. Moreover, these are unsecured finances. One doesn’t have to pledge any collateral against the advance, thus, eliminating worries of repayment.
Affordable personal loan interest rate and flexible repayment tenor also help a borrower with the loan repayments. Borrowers can use online loan account management to manage their EMI, statement of account, payment schedule, and other details. It streamlines the entire process and ensures that a borrower does not delay or miss any repayments. The borrower can also use an online personal loan EMI calculator to compute their EMI.
Personal loans are becoming increasingly popular because of their convenience, flexibility, and the advantage they have to offer. Fulfilling the personal loan eligibility criteria will ensure an applicant gets approved whenever he or she applies for such a credit.