Get to Know About Personal Loan Eligibility & Documents
Personal loans are loan products a borrower avails to fulfill individual capital needs. For example, a person can apply for a personal loan with a lender to pay the college fee or buy a home appliance such as a fridge or television. Personal loans have become an ideal loan product as the loan application process is entirely online, followed by quick disbursal of the loan amount. You can use the personal loan amount for the following purposes:
Education:
You can pay fees for school or college through a personal loan.Marriage:
You can take a personal loan to cover marriage expenses.Home Renovation:
You can renovate your home with a loan amount.Vacation:
You can use the loan amount to pay vacation expenses.Consolidating Debt:
You can use a personal loan to clear outstanding debt.Benefits of Personal Loans
Personal loans are one of the most flexible loan products, allowing borrowers to raise immediate capital. Here are the benefits of personal loans:Quick Approval:
Reputed lenders approve a personal loan in less than five minutes of application.No Collateral:
There is no need to pledge a valuable asset when taking a personal loan.Minimal Documentation:
A personal loan requires minimal documentation to make the process hassle-free and quick.No Restrictions:
There are no restrictions on the end usage of the loan amount.Personal Loan Eligibility Criteria
Here are the loan eligibility criteria for taking a personal loan:Age:
The borrower's age should be a minimum of 23 years and a maximum of 65 years.Employment:
The borrower should be a salaried employee or a self-employed individual.CIBIL Score:
The CIBIL or credit score of the borrower should be 750 or higher out of 900.Monthly Salary:
The minimum monthly salary should be Rs 22,000, which can fluctuate based on the city of residence.Documents Required to take a Personal Loan
Here are the documents required to take a personal loan:- Valid KYC through government-issued documents such as PAN Card, Aadhar Card, and Driving License along with a selfie.
- Three months of bank statements for income proof.
- Debit Card or Net Banking details for setting up e-mandate.
- e-Sign or e-Stamp for quick personal loan disbursal.
Q.1: What is the rate of interest on a personal loan?
Ans: The interest rate ranges between 11.75%-33.75% per annum. It depends from one lender to the next.
Q.2: How much loan amount can I borrow?
Ans: Generally, you can borrow up to Rs 5 lakh through personal loans. However, it depends on the financial institution.
Q.3: What are a personal loan minimum and maximum tenures?
Ans: The minimum tenure is three months, and the maximum tenure is 42 months.
Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.
