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Documents and Eligibility Criteria for a Personal Loan Explained

Are you thinking of applying for a personal loan? Personal loans come in really handy when it comes to taking care of expenditure as varied as medical emergencies and weddings to even vacations with loved ones, higher education of children and home renovation. Personal loans are unsecured loans, i.e. they do not require you to submit any collateral/security which is a major plus point. They usually come with tenors between 12 and 60 months and interest rates vary from one lender to another.

Personal loans are easier to obtain in comparison to other loans such as home loans and auto loans.
However, you have to consider your own personal loan eligibility. The eligibility criteria vary from one financial institution to another. However, there are certain basic requirements that you must fulfill in order to be eligible for a personal loan.

These include the following:

1.) Age- Should be between 25 and 58 years

2.) Should be a salaried professional employed in a public/private company or MNC

3.) Should be a resident of India

4.) Should have a minimum net monthly salary as prescribed by the lender (this varies from one lender to another and also across cities of residence)

You can also think of using a personal loan eligibility calculator in order to work out the amount that you are eligible for. This calculator can be found online and you only have to enter details like your date of birth, monthly income, current liabilities in the form of EMI payments and credit card debt and also your employer. The calculator will help you learn instantly about the amount that you are eligible for. There are some documents that are required for personal loans as well. These generally include the following:

1.) Salary Slips for last 2 months

2.) Bank statements of salary account for last 3 months

3.) Employment Proof (Employee ID Card)

4.) Proof of Identity- Passport/PAN Card/Driving License/Voter ID Card

5.) Proof of Address- Passport/Driving License/Latest mobile bill/Ration Card/Letter from Employer with Admin or HR signature

These documents need to be provided in order to avail of a personal loan. It also goes without saying that you should have a good credit score in order to qualify for a personal loan. Personal loans are offered by almost all banks and NBFCs in the country. You should compare lenders based on factors like interest rates, terms and conditions and other benefits before taking a final decision.

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