Over the past few years, the standard of living across urban India has significantly improved due to various factors. Better job opportunities are one of the primary reasons for this trend. However, this has also resulted in increased expenses that impact the cost of living.
Luckily, financial products like Personal Loans can help meet different expenses. Read on to know about Personal Loan eligibility, CIBIL score requirement, and other Personal Loan terms and conditions. First, let’s learn more about a Personal Loan and its features and benefits.
What is a Personal Loan?
A Personal loan is a financial product that can help fulfil various financial obligations or big-ticket expenses. It is classified under unsecured loans as you are not required to provide any assets as collateral against the loan.
Among the host of different features and benefits that come with a Personal Loan, here are the most important ones:
- No Security is Required Against the Loan Amount – As stated previously, Personal Loans are unsecured, so, you are not required to put any asset as security. This ensures that you get the funds you need without having to worry about your valuables.
- Competitive Interest Rates – You can find Personal Loan offers at competitive interest rates that suit your financial capacity. Do remember to research and find lenders that offer the best Personal Loans at attractive interest rates.
- Flexible Loan Repayment – If you don’t have a set repayment period, loan repayment can seem like a hassle. Thankfully, some Non-Banking Financial Companies (NBFCs) offer Personal Loans with a flexible repayment tenure of up to 60 months. This ensures that you can repay your loan in time.
- Simple Criteria for Determining Loan Eligibility – The eligibility criteria for Personal Loans are easy to fulfil. This makes it extremely accessible, easy to apply for, and an excellent financial product for individuals from different backgrounds.
- Minimal Documentation & Paperwork – Unlike earlier times, when getting a loan involved thousands of documents, getting a loan today is easier. When you apply for a Personal Loan online, you only need to submit basic documents for KYC purposes. These help the lender verify your personal details, professional background, and financial documents.
- High Loan Amount – You can find Personal Loans with a high loan amount that can help you meet your financial requirements. Some lending institutions offer Personal Loans with a high loan amount of up to ₹50 Lakh.
- No Restrictions on End-Usage – There are no restrictions on the end-usage of a Personal loan. Be it for meeting medical expenses, financing education, or a dream wedding, it can be used to fulfil almost any purpose. Note – Personal Loans cannot be used for activities related to trading or wagers. It is solely designed to help individuals meet big-ticket expenses like the ones mentioned above.
- Quick & Hassle-Free Loan Processing – When you apply for a Personal Loan online, you can rest assured knowing that your application will be processed quickly. The entire process is completed in just a few steps. You also get to stay in the loop to know the status of your application.
- Swift Loan Approvals – Once you apply for a Personal Loan online, its processing is completed seamlessly to ensure you receive swift approvals. From application submission to disbursal of the loan amount, if all requirements are met, you can receive approvals quickly.
What are the Eligibility Criteria for a Personal Loan?
The criteria for determining Personal Loan eligibility, CIBIL score, and more are as follows:
- Age – You must be at least 24 years old when applying for the loan and up to 58 years old at loan maturity
- Citizenship – You must hold citizenship in India
- Employment – You must have a full-time job with a minimum of 6 months of work experience in the present role
- Work Experience – You must have a minimum of 24 months of total work experience
- Monthly Income – You must have a monthly net take-home salary of at least ₹40,000
The ideal credit score should be 750 and above. It is considered by lenders and can help you get a low-interest rate on your Personal Loan.
Which Documents are Required for Availing of a Personal Loan?
The following documents are required for availing of a Personal Loan:
- KYC Documents – PAN or Aadhaar card
- Proof of Current Address Proof – Rent agreement, electricity bill, or passport
- Income Details – Most recent salary slip
- Financial Details – Bank statements from the last 3 months reflecting credit of salary
- Proof of Employment – Official Email ID confirmation or employee ID card
The abovementioned Personal Loan terms and conditions can help you determine your eligibility for getting one without any hassle.