What are the Documents and Eligibility Needed for a Personal Loan in India?

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Personal Loan comes as a life saver when we are in financial crises and in need of money immediately. We may need personal loan when our income exceeds our savings.

Personal loan helps in fulfilling wishes like taking a vacation or renovating small portion of your home where home loan does not suit.
Loan amount differs from persons income and capacity to pay his EMI. Before applying one should make sure to clear all credit card bills.

Documents and Eligibility Needed for a Personal Loan

Personal Loan Details

1) Loan amount varies from Rs 50,000 to Rs 25,00,000, it depending on the bank.
2) Processing fees will be between 1% - 4% of the loan amount, again extremely high.
3) Loan will have specificed repayment schedule from 1 year to 5 years.
4) Equated monthly Installment (EMI) comprise of Principal and Interest.

Personal Loan Eligibility Criteria

1) Person should be salaried, self employed or professional.
2) Aged between 22 to 59 years, having a bank account and have some monthly income.
3) Persons credit history should be good.
4) Your loan should not be declined in last 3 months. 
5) You should have some monthly repaying capacity.

Documents Required

1) Passport size photograph.
2) Filled application form dully signed.
3) Latest 3 months salary slips (indicating break up of gross salary).
4) 6 months Bank statement reflecting salary credits updated within last 15 days.
5) Identity Proof (Any one): Pan Card, passport, driving license or voter's ID card, employee identity card as identity proof and signature proof incase of government employees.
6) Address Proof( Any one) : Passport, driving license, ration card, voter's ID card, bank statement, rent agreement telephone bill, electricity or water bill
7) Loan schedules and bank statement showing EMI debits.

Personal Loans are being increasingly sought these days despite the fact that these loans are one of the most expensive in India. Sometime, a personal loan interest rate can be as high as 24% per annum, depending on the creditworthiness of the individual and the bank. Take a look at the documents and the eligibility needed for a personal loan.


Read more about: personal loan
Story first published: Thursday, November 20, 2014, 11:43 [IST]
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