Today, people who are in urgent need of cash easily rely on a personal loan. A personal loan is an unsecured, multi-purpose loan that can help you address a range of financial needs. Whether you need to plan your wedding expenses, book a trip, meet urgent medical expenses, or buy a high-end product, a personal loan can serve you right. Today, you can easily avail a quick loan through a loan app.
Loan apps have made financing quick, easy and hassle-free. But before applying for a cash loan, there are a few things that you must know. The first one is the eligibility criteria of the lender. You must meet all the eligibility guidelines mentioned by your lender. Secondly, you must make sure that you have all the necessary documents requested by your lender. Thirdly, you must check the interest rate levied on your loan.
In this blog, we will learn about the important documents that are required by most lenders to approve your cash loan.
Why availing of a personal loan is a good idea?
The features and benefits of a personal loan are as follows:
● Instant Approval of Loan
Personal loans are approved instantly. Once you apply for the loan via a loan app the lender verifies your details and approves the loan application within minutes if you meet their eligibility criteria. Once approved, the loan amount is disbursed into your account within 24 hours.
● Digital Documentation
Today, personal loans are completely digitalized. You don’t need to visit the branch or submit multiple copies of physical documents. Keep a scanned copy of your important documents like the Pan card, Aadhaar Card, bank account, and salary slips. You can easily upload these documents on the loan app while applying for a cash loan.
● Adjustable Repayment Period
Most lenders offer a flexible repayment tenure that ranges from 6 months to 60 months. Depending on your loan affordability, you can choose a tenure that suits your pocket. Remember opting for a longer tenure can reduce your EMI burden but it will increase your total interest payout. It is ideal to keep the tenure as short as possible.
The best thing about a personal loan is that it may be approved without the need for security or collateral, which makes it simple for loan providers to approve personal loans right away.
● Easy repayment
Small-ticket personal loans availed through a loan app are easy to repay. You can use a personal loan EMI calculator available on the app to choose a combination of loan amount and loan tenure that suits you best. The loan apps also send you constant reminders so that you do not miss out on your EMIs.
Eligibility Criteria for a Personal Loan
The qualifying requirements are divided into two categories: Personal Loans for Salaried Employees and Personal Loan for Self Employed. Personal loan eligibility criteria for self-employed individuals are as follows:
● You should be at least 21 years old and no older than 58 years old.
● You must be an Indian citizen.
● You must have a stable monthly income either as a salaried employee or a professional.
● Employed for at least 2 years or running the business for at least 2 years.
● Your salary must be above Rs. 15000 per month.
● You must be able to submit your income proof, either salary slips, or ITR.
Which Documents Should You Keep In Hand While Applying for a Cash Loan?
When you apply for a personal loan you should keep the following documents in hand.
● KYC documents including, Aadhaar Card, Mobile Number Linked to Aadhaar, Smart Card Driver’s License, Pan Card, and Bank Account Details
● A fully filled-out loan application
● Passport size photo
● Details about the employee or the organization, such as the name of the business or previous employment
● Your six months bank account statement
● Your office address proof
● Income proof
● A Cancelled cheque that has your name.
How to Apply for a Cash Loan?
Follow the steps given below to apply for a cash loan:
● Download the personal loan app or visit the lender’s website.
● Check the eligibility criteria.
● Fill out the loan application form
● Submit the necessary documents
● Provide your bank account details and then wait for your loan to get approved.
In the digital era applying for a personal loan has become easier than ever, all you have to do is download a loan app and start with the loan application process. But before that make sure you have checked the eligibility criteria and the documentation requirements. Submit the documents in the right format and make sure there is no discrepancy in the information submitted. This will help you get the loan faster.