If you do not have sufficient resources and urgently need money for an unexpected event, then one of the most feasible options is to use a personal loan. While most banks and financial institutions typically require borrowers to submit necessary documents before approving the case, some mobile lending apps tend to disburse loans immediately.
These direct personal loans are generally provided to salaried employees. You might wonder what the different criteria are for taking advantage of a personal loan.
Here we provide an overview of the most important criteria that borrowers must meet to take advantage of a personal loan
Age: Usually, direct personal loans are provided to borrowers in the age group of 21 to 60 years.
Income: An instant personal loan is usually offered to borrowers who are employed and receive a minimum salary of ₹15,000 to ₹25,000.
Continuity of income: It is usually important that the applicant stays in the same job for at least six months. And if the applicant is self-employed, it is necessary that the person has worked in the same company for at least 1-2 years.
Credit score: Another important condition that must be met is the credit score. Normally a credit score of 700 is considered good, but different lenders have different criteria and conditions before approving the loan application.
Required documents: You will be expected to provide a range of documents to prove identity, proof of income and proof of employment. So, the documents one needs to present include, but not limited to, Aadhaar, PAN, driving license, salary slips, bank statements and income tax returns (ITR) for the last two years.
The lender may also ask for an offer letter, company ID card and employment certificate.
Refund: The loan amount should ideally be within the borrower’s repayment range. For example, someone who makes money ₹one lakh per month can qualify for a loan of ₹15 lakh but someone who earns ₹25,000 may not be.
Furthermore, each lender has a specific lending limit within which borrowers can secure loans. KreditBee, for example, offers instant loans for an amount of up to ₹5 lakh while Bajaj Finserv offers personal loans up to maximum ₹55 lakhs.
