Sometimes, there are cases when your salary cannot meet your expectations, or there might be a case that enough credit is not available to you to meet your desired needs. In such cases, the concept of a personal loan comes into play, implying that you can choose a short-term credit to meet your immediate financial needs. It is now entirely up to you to decide how to spend that short-term credit, whether on medical bills or debt consolidation. There are no complexities in taking out a personal loan. It is very easy to get a personal loan from any of the banks in your area, but certain points cannot be overlooked and have to be kept in mind while applying for a personal loan. It is very important to know about the personal loan eligibility details so that you can get a loan as soon as possible. Some of the loan eligibility details are mentioned below:
- The most important eligibility factor when applying for a personal loan is the place where you live. Your geographical location plays a vital role in determining whether your loan will be approved or not. People living in urban areas have a greater chance of getting their loans approved as compared to those living in rural areas.
- Income is also an important factor for personal loan eligibility, as the higher your income is, the greater the chances of your loan getting approved. The reason is that lenders give you a loan based on your repaying capacity. The greater your income, the greater your repayment capacity, and the greater the likelihood that your loan will be approved. There is no such minimum salary required to get a personal loan, but the amount depends on the lender. Some lenders provide loans at a minimum salary of Rs 25,000/-and some provide loans at a minimum salary of Rs 20,000/-also.
- While applying for a loan, the lenders do acquire information about your previous debts and your homeownership. If you live in a rented home, then the chances of your loan getting approved are lower compared to those of people who live in their own homes.
- There are scenarios when you require two loans at the same time due to some financial crisis. In such a case, since you will be in the middle of repaying your previous loan, the chances of getting a new personal loan will be significantly less.
- If you have a good credit score, then you can easily get a loan as your credit history affects your loan eligibility.
- There is an age factor too for getting a personal loan. The minimum age to get a loan is 22 years, while the maximum is 52 years. Always keep in mind to check the eligibility online on the portal of the lender from whom you wish to take a personal loan.
While applying for a loan, there are some documents that you should carry along with you so that you can get approval as soon as possible. These documents are:
- A passport-sized photo
- Duly completed loan application form
- A Cheque
- Proof of identity: A copy of a passport/AADHAR card/driving license/PAN card
- Proof of residency: a copy of a passport, an electricity bill, or a home rent agreement
- Income proof: bank account statements or salary slips
- Form 16
- KYC document
So, getting a personal loan is quite easy these days. You just need to follow the procedure and you will get the loan as soon as possible.