Personal Loans can be of great use when you encounter emergency expenses. These loans can also be used for covering high-ticket purchases as they come with no end-use restrictions. Personal loans are unsecured in nature. This is particularly beneficial for those who want to avail of funds quickly without searching for collateral to submit.
As the popularity of digital lending grows, various lending institutions are giving out unsecured Personal Loans through online applications. Online Personal Loan application has made applying for these loans easier than ever. The sheer volume of Personal Loan applications has increased considerably. Hence, it is important to apply consciously and avoid any delays.
Here are some tips you can use to get an instant approval
➤ Have a good bureau score:
Lenders take your bureau score into account when they receive your Personal Loan application. It is one of the most important criteria for Personal Loan eligibility. A bureau score above 700 is considered healthy and most lenders accept this score.
However, if you have a bureau score below 700, you can improve it by making your payments on time, maintaining a good credit mix, and checking your bureau report for errors and getting them rectified immediately.
➤ Apply online:
Since most lending institutions, banks, and Non-Banking Financial Companies (NBFCs) are offering online Personal Loan applications, you don’t have to worry about visiting a branch. Gone are the days when you had to stand in long queues to submit your loan application.
You can simply apply online from any location whatsoever. Besides this, you don’t have to gather hefty paperwork for your Personal Loan application form. You just have to upload soft copies of the supporting documents while applying online.
➤ Apply for one loan at a time:
Making multiple loan applications at the same time might impact your bureau score negatively. When you apply for a loan, lenders initiate a hard inquiry on your bureau report. This brings down your bureau score by certain points.
Therefore, if you make multiple loan applications, there will be multiple hard inquiries on your bureau report, making you ineligible for a Personal Loan application.
➤ Keep your documents ready:
Many lenders are offering Personal Loans with minimal documentation. You don’t have to gather multiple documents as you only require simple documents such as KYC documents, income proof, residential address proof, financial documents, and employment proof. You just have to upload soft copies of these documents while filling out your Personal Loan application form.
Personal Loan eligibility criteria
Once you have chosen your lender, check the eligibility requirements for Personal Loans. As these loans are unsecured, the eligibility criteria are easy to fulfill. Before applying for the loan, carefully check the eligibility criteria so that you can get an instant approval for your Personal Loan application.
Below are the eligibility criteria for Personal Loans.
- Age: The applicant should be a minimum of 24 years old at the time of loan application and a maximum of 58 years old at the time of loan maturity.
- Citizenship: The applicant should be a citizen of India.
- Employment: The applicant should be an employee of Central Govt, PSU, MNC, Listed, Unlisted Public Ltd, Pvt Ltd, LLP, or companies that are listed internally.
- Work experience: The applicant is required to have a minimum of 2 years of work experience, along with 6 months of stable employment at the current job.
- Monthly income: The applicant is required to have a minimum monthly income of ₹40,000.
Documents required for Personal Loan application form
- KYC documents: Lenders accept Aadhaar/PAN card as your KYC documents.
- Current address proof: You can submit your utility bills/rent agreement/Passport.
- Income documents: You are required to submit your latest salary slip.
- Financial documents: You can submit your salary bank credit statement for the last 3 months.
- Employment proof: You can provide your official email id confirmation or your EMP ID card in case the email id is not available.
Getting a Personal Loan can help you tackle numerous financial hurdles. These loans can be used for a variety of purposes including international travel, weddings, home renovation, and even debt consolidation. Personal Loan applications are available online on lenders’ official websites. Ensure that you have a good credit score, have all the required documents, and provide accurate information to get instant approval.