About Personal Loan
Personal loans are one of the most convenient and quick ways to arrange money for any unexpected requirements. Basically, personal loans are of two types i.e. unsecured and secured. In secured personal loans, a borrower has to pledge collateral as security whereas, in unsecured loan, there is no need to pledge any collateral against the loan amount. In this digital era, Apna paisa bridges the gap between a lender and a borrower. Conventional or traditional offline services still work the same way as earlier. A borrower can avail personal loans as per their convenience.
Types of Personal Loans
Secured Personal Loans- a borrower needs to submit their assets or any other valuable items as collateral. Most of the lenders ask for the security against the loan amount. If you fail to repay the loan amount, a lender can liquidate the same asset to repay the loan amount.
Unsecured Personal Loans
Well, in an unsecured personal loan, lenders never ask for any kind of collateral. This is one of the prime reasons that this type of loan has a higher interest rate as compared to the secured personal loan.
So, if you are willing to apply for a personal loan, then there are many eligibility factors that a borrower need to consider before applying for a personal loan
Personal Loan Eligibility Criteria
Age: The minimum age to apply for a personal loan is at least 21 years and the maximum age to apply is 60 years. An age plays an important role to know your eligibility and repayment potential.
Monthly Income: Based on your monthly income, the lender decides your eligibility. Usually, most of the lenders have set specific criteria of the minimum level of income to apply for a personal loan. For a salaried individual, the minimum income bracket set by the lenders is INR 15,000/-. The minimum income criteria also depend on the city co-ordinates you live in and for the company you work for. For instance, If a borrower works in a metro city or tier 1 city, the minimum income withdrawn would be higher than the one working a tier 2 city.
Work experience: A borrower should be staying in the same city for more than a year and his or her overall working experience in the current company should be at least 1-2 years.
CIBIL Score: Financial Track Record Matters! Most of the lenders consider your past repayment period of existing loans (if any) as it has a direct connection and impacts your personal loan eligibility. If a borrower has a poor repayment record, then the chances are that your loan application might get rejected. And, on the other side, if a borrower has a regular repayment record, it increases the chances of personal loan approval.
Documents Required For Personal Loan
Along with duly filled and signed personal loan application form, a borrower needs to submit:-
• 2 recent passport size color photographs
• Identity Proof such as- Borrower’s Driving License, PAN Card, Passport, Voter ID (anyone)
• Residential Proof such as utility bill (electricity or telephone bill of last 3 months)
• Proof of monthly income- Salary Slips of the last 3 months from the date you apply for a personal loan.
• Bank Statement or passbook of past 3-6 months
• Latest Income Tax Return/ Form-16 of last 2 to 3 years
• KYC Documents such as – Address proof, proof of date of birth, borrower’s identity proof
• Processing Fee Cheque
How to Apply
Well, there are a number of ways or process to apply for a personal loan. You can either go to the respective lender or bank and can inquire about the whole personal loan process, or you can apply online through Apna Paisa. Once your loan is finalized, the lender will initiate the process.
Apna Paisa offers personal loan eligibility calculator, as a check tool to know the eligibility criteria for the personal loan. The major highlight of this tool is that a borrower can find the personal loan amount for which they are applicable. Hence, before you apply for a personal loan online, here, at Apna Paisa, a borrower can compare personal loan interest rates from different lenders and can choose the one with the lowest interest rate. Well, applying for a personal loan online through Apna Paisa offers some major advantages such as Eligibility check tools, user-friendly online application form, quick loan approval, and disbursement process, etc.