How to Apply for Personal Loan? Explanation, Eligibility Criteria & Documents

Find out the detailed Personal Loan application process along with the loan eligibility criteria and documents needed

Key Takeaways

Applying for personal loans has become easier than ever.
You can apply for a loan online from the comfort of your home.
Banks approve and disburse loan amounts within a few hours to a couple of days.
Be sure to check the eligibility criteria set by the lender.
Most lenders approve Personal Loans for people with a monthly income of INR 5,000 and above.

Introduction

Are you planning your next holiday? Do you wish to renovate your house or buy the latest tech gizmo? Do you need money to fund a medical emergency or simply expand your business? If your answer to any of the above questions is yes,no you can get the necessary funds by applying for a Personal Loan. Continue reading this article if you wish to know how to apply for a Personal Loan? Also, find out the eligibility criteria, documentation, and the Personal Loan application process.

Eligibility Criteria

Personal Loans are unsecured loans, and thus the eligibility criteria(2) are also quite flexible compared to secured loans. Let us see the essential eligibility criteria for availing of a Personal Loan. To be eligible for a personal loan, you should:

Be in the age group of 21 years to 68 years.
Be a self-employed or salaried applicant, a business owner, a homemaker, or a student, or a retired individual.
Earn a minimum monthly income exceeding INR 5,000. The minimum income criteria may vary from bank to bank.
Have a CIBIL score exceeding 750 points. A higher score increases the chances of getting the loan.

Though these are the general criteria for a Personal Loan, these can change subject to the type of financial institution form where you are applying for the loan.

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How do I get a Personal Loan?

The answer to the question 'how to apply for Personal Loan, is pretty simple. All you need to do is use the financial institute by filling up the necessary details and then submitting the required documents. Here are the steps you need to follow while applying for a Personal Loan:

Visit the website of your preferred lender, and choose Personal Loan under the Loans tab.
Download and fill the Personal Loan application form and provide the basic details asked in the form, such as your name, address, contact number, income details, etc.
Browse through the list of documents required and upload soft copies of the same along with the duly filled loan application form.
Now, the bank will verify all the details and documents. If everything goes well, the bank will approve your request for a Personal Loan.
The bank will sanction your loan request and disburse the amount into your savings account.

Documentations required for a Personal Loan

Besides knowing 'how to get an instant Personal Loan, you should also be aware of the documents required to apply for it. They are as under:

An age and identity document with your photograph affixed on it such as your PAN Card, Aadhaar Card, Voter ID, Driver's License or Passport.
An address document with your address mentioned on it, such as your Aadhaar Card, Voter ID, Driver's License, Passport or utility bills.
Your proof of income documents like salary slips, bank statements, IT returns, etc.
Documents proving your employment.

Conclusion

Knowing about the process of how to get an instant Personal Loan is essential. Knowledge about the process can prepare you and expedite the process, especially when you need money urgently. Remember that different lenders offer different interest rates and tenures, so compare each lender before finalising one. Also, ensure you are eligible and provide the proper documents to get instant disbursals.

Download the digibank mobile app on your smartphone, launch the app and click on the 'Get Personal Loan' link on the login page..

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