Saturday, May 18, 2024

Eligibility Criteria for Personal Loan Apps: What You Need to Know

Personal loans have become very popular among young people who want quick financing for meeting diverse financial needs. With the advent of loan apps and online loans, availing a personal loan has become easier than ever. These modern ways of financing have also eased the eligibility criteria for availing quick loans.

Since these loans are unsecured loans, meeting the lender’s eligibility criteria is of utmost importance. Though meeting the eligibility criteria is very easy and simple, you still need to make sure that you meet each one of the criteria.

Read on to understand the eligibility criteria for personal loan apps.

What Is A Loan App?

A personal loan is a flexible loan that may be used for various things. You can use these personal loans for any purpose without any restriction. However, you may apply for a loan without physically visiting the lenders by filling out an online form.

A loan app is an application specifically created to apply for personal loans. These apps may be used to understand various application requirements, eligibility requirements, loan plans, EMI options, and loan applications.

How to Check Personal Loan Eligibility?

You can use a personal loan eligibility calculator to see if you can apply for a loan. For your convenience, several lenders offer this eligibility calculator on their official websites. The personal loan eligibility calculator also helps you learn about the maximum loan amount that you can apply for. Knowing this limit will help you apply for a loan within the maximum amount. This reduces your chances of loan rejection. 

Thus, before applying for a loan, you must check out the personal loan eligibility criteria. Only apply for a loan when you meet all the eligibility requirements. Many loan apps have minimal eligibility criteria, making it easy and convenient for you to avail a personal loan.

Eligibility for Personal Loan Apps

An instant personal loan app can assist you in understanding the eligibility for borrowing money from a certain lender. Here, we’ll discuss standard eligibility criteria for personal loan apps.

  • You must reside in India.
  • You must live within the service area of the lending institution.
  • You should be between the ages of 21 and 60.
  • You must be a salaried employee or self-employed.
  • If you are salaried, your minimum monthly income should be Rs. 15,000; if you are self-employed, it should be Rs. 20,000.

In case you do not meet the lender’s eligibility criteria, then here are a few strategies that can help you get the loan.

  1. Add a co-borrower to your loan application – In case, you do not meet the lender’s set eligibility criteria, you can consider adding a co-borrower to your loan application. Make sure your co-borrower has a good credit score and a stable source of income. This will improve your loan eligibility and loan amount. 
  2. Submit a collateral – In case you do not meet the eligibility criteria for an unsecured loan, you may opt for a secured loan. You can pledge any valuable asset including your land, property or jewellery. 
  3. Try another lender – Different lenders have different eligibility criteria. You can check and compare the eligibility criteria set by different lenders and choose the one that has minimal eligibility criteria.

Required Documents for Personal Loan Apps

Every lender requires your basic documentation for completing the loan process. You must submit your loan application along with your KYC documents, and documents related to your income. Your income proof could include salary slips, employment letters, bank account statements, business statements and any other document related to your income. 

Read the lender’s documentation requirements, and make sure to furnish the documents in the requested format. When applying through a loan app, you must check the format and ensure that the documents are correct. 

Here is a list of documents that most lenders ask to validate your loan application:

  1. Proof of Address: Driving license, Voter ID, Aadhaar Card, etc.  
  2. Proof of Identity: A PAN card and selfie can be used for identity proof.  
  3. Proof of Income: You can use a three-month bank e-statement or your net banking statement as evidence of your income.

Conclusion

A personal loan is a feasible alternative that may easily and conveniently meet the current financial needs. Personal loans are the most practical financing option; they stand out from other choices due to their speedy approval and disbursement times. Using a fast personal loan app, you may apply for a loan anytime, anywhere. 

But it’s important to confirm your eligibility for a personal loan and the documentation needed before applying for one. Instant personal loan applications have made obtaining personal loans easier. You can use an online loan app to know about your eligibility, the paperwork you’ll need to apply for a loan, the status of your application, and much more.

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