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WHY DOES ONE NEED PERSONAL LOAN?


Personal Loan is not just specific to one need and can help you to fulfill different basic purposes like money shortage for education, travel, wedding or house renovation. Also, it is considered as an UNSECURED LOAN, which doesn’t require a leverage making it further easy to get. However, there is an eligibility criteria for the personal loan too which is explained in the sections below.

REQUIRED ELIGIBILITY AND DOCUMENTS FOR PERSONAL LOAN APPLICATION

Eligibility

Eligibility

The eligibility for a personal loan varies from client to client based on their requirements and their income. Also, the cibil score of the client can also help in determining the trustworthiness of the loan payback.

Documentation

Documentation is required for any financial and bank related work in order to keep the records on the person and to check any financial history of the client.

Documents required for Personal Loan

Photo Identification

Photo identification is important to record the personal information of the client and to eliminate the chances of identity theft.

Income Proof

In case the client owns a business, the income proof is required to see if the client is able to repay the loan within the defined tenure.

Salary Slips

In case the client is employed, then the salary slips of the past few months are also required to see if they have stable income.

Address Proof

Address proof is one of the most important documents to be attached for the loan application as it works as a security measure.

HOW TO IMPROVE THE ELIGIBILITY FOR PERSONAL LOAN?

Certain factors make you ineligible for the personal loan approvals.
In case, your eligibility is also low, there are certain measures which you can take to improve it.

  • Build a good cibil score : You need a score 750 or more to be considered as a reliable borrower.
  • Clear your previous credit history : Clear any outstanding credit history, if there’s any.
  • Don’t apply for a loan in multiple places : Even in need, avoid applying for a loan in multiple places as it may lead to cancellation of the loan application.
  • Apply for loan with better eligibility : Maybe you are applying for an amount larger than your eligibility criteria, so try applying for a smaller amount if possible.
  • Stable Income : Income is a crucial factor in getting the loan application approved. Hence, make sure you have a stable income or work on getting the ups and downs in income to minimum.