If you fall short of funds and urgently need money for an unanticipated event, then one of the most feasible options is to avail a personal loan. Although most banks and financial institutions typically require borrowers to submit necessary documents before they give an approval on the case, some mobile lending apps tend to disburse loans instantly.
These instant personal loans are generally given to the salaried individuals. One might wonder as to what are different criteria to avail a personal loan.
Here, we list out the key eligibility criteria for borrowers to avail a personal loan
Age: Usually, instant personal loans are given to the borrowers in the age group of 21 to 60.
Income: Instant personal loan is usually offered to the borrowers who are salaried and draw a minimum salary of ₹15,000 to ₹25,000.
Continuity of income: It is usually important for the applicant to be in the same job for a minimum of 6 months. And if the applicant is self-employed, it is necessary for the person to be in the same business for a minimum of 1-2 years.
Credit Score: Another important condition to be fulfilled is the credit score. Typically, a credit score of 700 is considered good but different lenders have different criteria and conditions before the approval of loan application.
Documents required: One is expected to produce a set of documents to prove identity, income proof and employment proof. So, the documents which one is supposed to show include, but not limited to, Aadhaar, PAN, driving licence, salary slips, bank statements and income tax returns (ITR) for the past two years.
The lender may also ask for an offer letter, company’s ID card and employment certificate.
Repayment: The loan amount should ideally be within the repayment range of the borrower. For instance, someone earning ₹one lakh a month may be eligible to procure a loan of ₹15 lakh but someone earning ₹25,000 may not be.
Additionally, each lender has a specific loan limit within which borrowers can secure loans. For instance, KreditBee offers instant loans for an amount up to ₹5 lakh whereas Bajaj Finserv offers personal loan of up to ₹55 lakh.
