Personal Loans go a long way in meeting financial deficits during emergencies. This could range from family weddings and home renovation requirements to medical emergencies and higher education fees. Personal Loans also come with a higher level of flexibility than other loans. Once you receive the loan amount in your account, the financial institution doesn’t monitor how you use the funds as long as they aren’t used for anything illegal. Personal Loans, lenders have some conditions. Read on to learn more about the eligibility conditions associated with Personal Loans in India. Read now for more
While the application process is quite straightforward, you must meet the personal loan eligibility criteria of the lending institution you choose. These criteria vary based on gender, age, employment status, and several other factors.
Personal Loan Eligibility and Documents Required:
Applicants for Personal Loans need to submit various documents along with their applications. This includes one each of the proofs in the following categories:
- Identity proof: PAN card, Aadhar card, Passport, Voter ID
- Address proof: Passport, Aadhar card, Voter ID, rent agreement, electricity bill
- Proof of income: Documents for income proof vary based on the applicant’s employment status.
- Salaried individuals need to submit proof of income through salary slips for the past three months, income tax return documents, or their Form 16.
- Self-employed individuals need to share multiple documents in the form of
- P&L statement and balance sheet with their computed income for the past two years
- Income tax returns for the past two years
- Business license, registration certificate, GST number
- IT clearance certificate
- TDS certificate OR Form 16A OR Income tax challans OR Form 26AS
These documents are always the fundamental requirements for loan eligibility. Based on the loan provider’s policy at the time of application and your profile, you might have to submit additional documents and some or all of the abovementioned documents.
Eligibility Criteria:
Personal Loans are unsecured loans; hence their eligibility criteria apply to all individuals borrowing the loan.
- You must be at least 21 years of age. This applies to entrepreneurs, self-employed individuals, and salaried professionals.
- You must be under 58 years of age by the end of your loan tenure.
- Different NBFCs specify a minimum monthly income limit. These vary from one city to another, with the minimum being higher in metro cities and lower in other locations. For example – Clix Capital requires a monthly minimum income of INR 20,000 to apply for the Personal Laon.
- According to most NBFCs, your credit score must be above 700. However, you can still get a loan if you have a low credit score, but you might not get the principal amount you apply for. You might also have to pay a higher rate of interest. Clix Capital can provide you with a Personal Loan on a minimum Experian credit score of 630.
- Your Personal Loan EMI cannot be higher than a fixed percentage of your salary or monthly income.
Calculating Your Loan Expense:
Before you apply for a loan, check your Personal Loan eligibility. Make sure you can repay the loan EMI without it becoming a financial burden for you. You can use a free personal Loan EMI calculator available on websites of leading NBFCs like Clix Capital to estimate how much you will borrow, your total amount to be repaid, and your monthly liability. This will help you make a more informed decision and plan your finances accordingly.
So, go ahead and apply for a Personal Loan with complete information and get quicker approvals too! Financial emergencies are not very uncommon. To meet this kind of emergency, you can get an instant Personal Loan from Clix Capital.