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Planning to stretch your budget for a family event, travel, higher education, wedding, medical emergency, or home renovation?
A Personal Loan with an NBFC can help you address the cost without the need to put pressure on your savings.
An Unsecured Personal Loan offers easy EMI repayment and does not require any collateral or mortgage, making it more accessible and easier to manage.
Here’s a guide to help you understand Personal Loan eligibility and the application process.
Primary Considerations for Personal Loan Eligibility
Although various lending institutions have different Personal Loan eligibility criteria, a few of them are common for every loan provider. The following are the primary Personal Loan eligibility requirements you should consider before applying for a Personal Loan.
Experian Credit Score
The Experian credit score reflects your creditworthiness to the NBFC. It is a number based on your financial history, showcasing how you have managed your finances and repaid your existing debts.
An Experian score of 630 or above is considered good, so it’s important to maintain it. Lending institutions might reject your application if your credit score is low.
Interest Rates
Comparing the interest rates of different loan products to get the best deal is a good idea. You can use a Personal Loan EMI Calculator to calculate your exact monthly payments on different interest rates before applying for a loan.
Tenure
Select the tenure of your loan as per the EMIs and your repayment capacity. The EMI amount will increase with a shorter tenure while decrease with a longer tenure. Online Personal Loan calculators can also assist you in selecting the tenure and making repayment plans.
Costs
Several costs may be associated with borrowing a Personal Loan, such as processing, prepayment, or late payment fees. In addition, it’s important to consider the multiple fees levied by the lending institutions before applying for a loan to get an accurate idea of the total cost you will pay to avail the loan.
You can address many financial emergencies easily with Personal Loans. However, it’s important to exercise caution and create a thorough strategy before applying to prevent missed EMI payments as such misses will affect your credit report negatively.
Generic Eligibility Criteria To Apply For A Personal Loan
It’s relatively easier to get a Personal Loan without collateral as it comes under the unsecured loans category. Such loans are a popular choice as these can be taken with little documentation.
The eligibility requirements for Personal Loans differ from one lending institution to another. Below are the general requirements for salaried individuals to obtain a Personal Loan:
- Age: Loan applicants must be between the ages of 21 and 58.
- Basic Income: Loan providers generally demand a salaried applicant with a minimum salary of Rs. 20,000 per month.
- Credit Score:Having an Experian credit score of 630 or more is crucial.
- Total job experience: The applicant should have a minimum of one year of overall work experience with six months in the current organisation.
After determining whether the loan application is eligible, the final Personal Loan interest rate is provided, and the lending institution approves the loan amount upon successful document verification.
Required Documents For Personal Loans
Keep the following documents ready before applying for a Personal Loan to speed up the procedure:
Duly filled online application form
Recent passport size photograph
Identity proof like Aadhaar Card or PAN Card, or government ID for government employees
Address proof like Aadhaar Card, Voter ID, passport, driving license, etc.
Income proof, including your last month’s pay slip or current year’s Form 16
Choose a Smart Online Lending Firm
People who wish to save time and avoid stress, must look for lending firms like Clix Capital that have simplified the Personal Loan online application process. The complete process is online and does not require lengthy documentation.
NBFCs have basic qualifying conditions and minimum documentation requirements, which helps to keep the loan process as simple and fast as possible. You can count on them to get hassle-free Personal Loans online within minutes.
Conclusion
The best advice before applying for a Personal Loan is to understand the essential features of the loan, the eligibility criteria, and the documents required. You can use a Personal Loan EMI Calculator to get the accurate values and make a sharper decision.
We hope that your financial journey remains on the right track.