Today, personal loans are highly accessible and easy to get if you meet the required criteria. Hence, it is always better to take all the measures to make the disbursal even faster. Typically, personal loans get sanctioned anywhere between 12 to 72 hours if you can fulfil the eligibility criteria.
But, how can you check the eligibility for a personal loan when multiple factors can influence it? This post covers a few tips on checking your loan eligibility.
Ways to Check Personal Loan Eligibility Online
Get Acquainted with the Lenders:
To start the loan taking procedure, you must first check the lenders and understand their overall position in the market. It is also crucial to only select credible lenders for a personal loan. Hence, you can check their website, talk to the customer service representatives, etc. Based on this information, you can make an informed decision regarding online personal loans.
Visit the Loan Criteria Section:
After visiting the website or speaking with a customer service employee, you must gauge the criteria put forth by lenders. The majority of personal loan lenders have a standard benchmark. Nevertheless, it would help to look into the specific financial institution or lender’s criteria for personal loans.
The standard eligibility criteria include:
- Applicant must have been employed and have work experience of at least 1 to 3 years
- Self-employed individuals who own a business can also apply.
- Applicant’s age must be between 21 to 68 years old
- Applicant’s CIBIL score must be above the required number; 750 is ideal
In addition to this, if your lender or financial institution has any other pre-requisites, you must speak with the customer service representatives. It will also help you maintain a level of transparency with lenders and resolve all your queries.
Understand the Needs of your Submission:
Understanding your personal loan eligibility also includes knowing what kinds of form submissions you will need to make for the procedure to be completed. Filling up these forms accurately helps avoid any delays. Hence, go over the application forms before submitting them to prevent such a hindrance to your application.
Check for the Required Credit Score or History:
One of the most integral parts of lenders evaluating your eligibility for a personal loan is your creditworthiness. Your creditworthiness primarily comprises your credit score and credit history. These two factors determine the personal loan interest rate you will receive from the lender. A good cibil score and history mean a lower interest rate and vice versa.
Therefore, you must ensure that you check your credit score and history; a score of 750 is ideal. Your credit history must also be flawless as it showcases your repayment capacity. Defaults in prior repayment of debt have a negative impact on the lender’s perception of your application.
Look at the List of All the Documents You Need:
Compared to other forms of loans, such as home loans and car loans, personal loans require very minimal documentation. Although most standards across the board, you must check if there are any specific documents your lender requires you to submit.
The standard documents include:
Required documents for salaried applicants include:
- Identity Proof: You may submit your Passport / Voter’s ID / Driving License / PAN Card
- Residence Proof: Utility bills that are a maximum of 3 months old or your passport can be used
- Bank statements: Last three months – of the account in which your salary is credited)
- Salary slips (last three months)
- 2 Passport sized pictures
Required documents for self-employed applicants include:
- Documents for KYC: Identity proof, address proof, and the date of birth proof
- Residence proof: Submit utility bills that are at most three months old, or you can use your passport as well
- Income proof: Submit audited financials over the last two years
- Bank statements: Last six months
- Proof of office address or ownership of an office space
- Proof of business continuity
Conclusion
These are some of the most important aspects of checking your personal loan eligibility. Ensure you follow it thoroughly. Personal loans are an efficient way of borrowing funds owing to their low sanction periods and easy to follow terms and conditions.
It is best to uphold your part of the process to help lenders identify you as a good borrower. You can only do that by thoroughly checking your loan eligibility and following the documentation process. Follow the steps mentioned above to make your loan acquiring procedure seamless!