Personal loans are a type of unsecured loan that provides quick access to funds without the need for collateral. They are versatile loans that can be used for a variety of purposes, such as home renovation, medical emergencies, travel, and more. In India, personal loans are offered by both banks and non-banking financial companies (NBFCs). With the growth of fintech, there are also several online lenders that offer personal loans.
This kind of instant loan does not have any end-usage restrictions, which means you could finance a royal wedding, a trip to your dream destination, renovate your home, deal with a medical emergency, or finance the expansion of your business.
Ruloans will connect you to a lending partner of your choice, and our team will take you through the process quickly with ease. Choose from our catalog of Personal Loan Partners of Banks and NBFCs according to your needs and convenience for easy personal loan in India.
In this article, we’ll provide an overview of personal loans and guide you through the process of applying for one.
Eligibility Criteria for Personal Loans
To be eligible for a personal loan, you need to meet the criteria set by the lender. This usually includes factors such as your age, income, employment status, credit score, and more. Here are the general eligibility criteria for personal loans in India:
Age: Most lenders require the borrower to be at least 21 years of age and not more than 60 years old.
Income: The minimum income requirement for personal loans in India is usually around Rs. 20,000 per month. Some lenders may require a higher income, depending on the loan amount and repayment tenure.
Employment: You must be employed, either in a private or public sector company, or self-employed.
Credit Score: A good credit score is a crucial factor in getting a personal loan. Most lenders consider a score of 750 or above to be good.
Residency: You must be a resident of India to be eligible for a personal loan.
Documentation Required for Personal Loans
To apply for a personal loan, you’ll need to submit the following documents:
Identity Proof: PAN card, passport, Aadhaar card, or driving license.
Address Proof: Aadhaar card, passport, or utility bill.
Income Proof: Salary slips for the past three months and Form 16 for the past two years.
Bank Statement: A bank statement for the past six months.
Other Documentation: Any other documents that the lender may require, such as a personal loan agreement, proof of employment, and more.
Steps to Apply for a Personal Loan
The process of applying for a personal loan can vary depending on the lender. Here are the general steps for applying for a personal loan in India:
Research and Compare: Research the different options available for personal loans and compare the loan terms, interest rates, and other features.
Check Your Credit Score: Check your credit score and make any necessary improvements before applying for a loan.
Choose a Lender: Based on your research and comparison, choose a lender that offers the best loan terms and interest rates.
Complete the Application: Fill out the loan application form and submit the required documents. This can be done online or in person.
Loan Processing: The lender will review your loan application and documentation. If you meet the eligibility criteria and your documentation is in order, your loan application will be approved.
Loan Disbursal: Once your loan application is approved, the loan amount will be disbursed to your bank account.
Benefits of Personal Loans
Personal loans offer several benefits, such as:
Quick Access to Funds: Personal loans provide quick access to funds, which makes them ideal for emergencies or unexpected expenses.
Unsecured Loans: Personal loans are unsecured, which means that you don’t need to put up collateral to get the loan.
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