Are you a salaried individual looking for a personal loan online? Here is all you need to know about its benefits, eligibility, documentation and more.
The thing about life is, it can take a turn for better or worse without warning. And you need to be prepared for that. For instance, for financial emergencies that cannot wait for your attention, personal loans are deemed to be the fastest and most effective saviour.
Getting one is usually a simple process and the eligibility criteria are also straightforward. If you are a salaried person looking for an online personal loan, read this blog to gain a better idea about how to go about it.
Eligibility Criteria for Obtaining Online Personal Loans
For personal loans, every financial institution has its own set of criteria. The following is a list of some of the common things they look for in a borrower.
- Nationality: You must be an Indian citizen.
- Age: You must be at least 21 years old or under 58 years old at the time of applying for a personal loan online.
- Income: You don’t need to belong to a high-income category to qualify for an online personal loan. Applicants with a monthly income of as low as Rs 15,000 can easily get personal loans online.
- Employment: If you are a salaried individual, you should be working for a private limited company, PSU, multinational company, etc.
- Stability: Applicants should have a minimum work experience of a year.
The requirements listed above may vary from one lender to the next. Hence, you should use a loan aggregator website to analyse the eligibility criteria of several lenders and select the one that best matches your profile.
Documents Required for Obtaining Online Personal Loans
The following are some of the common documents that almost every financial institution requires:
- Identity Proof (one of them will do): Voter’s ID Card/ PAN Card/ Driver’s License/ Aadhaar Card/ Passport
- Address Proof (one of them will do): Utility Bill/ Ration Card/ Aadhaar Card/ Driver’s License/ Passport
- Residence Ownership Proof (one of them will do): Property Documents/ Maintenance Bill/ Electricity Bill
- Income Proof: Latest Salary Slips/ Latest Bank Statement/ Form 16
- Job Continuity Proof (one of them will do): Employment Certificate from current organisation/ Experience or Relieving Certificate/ Appointment Letter
- One passport size photograph: Depending on your profile, your lender may ask for a few more documents that they deem necessary.
How to Get a Personal Loan Online Against Your Salary?
To get a quick personal loan online, you need to follow the steps below:
- Visit the website of the lender of your choice.
- On the website, go to the personal loan section.
- Click on the ‘apply for a loan’ icon.
- Fill in the required details and upload your documents.
- A financial institution representative will get in touch with you for further processing of the loan request.
- Once you have completed all the required steps and the lender is satisfied with your profile, the loan amount will be disbursed to your account shortly.
Features of Online Personal Loan
There are various advantages of taking an online personal loan. The following are the key ones.
Although personal loans are unsecured forms of credit, they still get faster approval than other loan forms. When you apply for a personal loan online, the financial institution uses your uploaded documents to analyse the risk associated with your profile.
Based on the documents submitted, the lending institution will let you know right away whether you qualify for a personal loan or not. You can also check your eligibility by going through the qualifying criteria mentioned on the financial institution’s website.
When you apply for an online personal loan, you get to choose a tenure that best suits your need and budget. Usually, financial institutions provide personal loans with a maximum repayment tenure of 5 years or 60 months. To determine the ideal repayment tenure, you must use the personal loan EMI calculator.
EMI calculators not only assist you in calculating your EMI but also determine the optimum tenure for you to organise your budget wisely. However, borrowers should be aware that loans with shorter terms have higher EMIs but lower interest components, and vice versa.
Gone are those days when you had to queue for hours with a stack of papers in order to secure personal loan approval. Today, you simply need to upload a few basic things, such as KYC documents, a passport-size photograph, income proof documents etc. Once the lender verifies your documents and is satisfied with the same, you can look forward to a quick personal loan online approval.
One of the biggest benefits of a fast personal loan online is that borrowers can use it to meet a host of needs. The financial institution does not require you to explain why you have submitted an online personal loan application. This means you can take care of medical emergencies, debt consolidation, weddings, children’s higher education, vacation, and so on, with the loan amount.
Now that you know how a salaried individual can get a personal loan online, it is time to apply for one and say goodbye to financial constraints. You can now meet an emergency or fulfil a long-cherished dream easily.