Personal loans are highly preferred financial tools that fulfil a wide range of expenses. Today, you can easily avail an online loan for financing all your high-end purchases. Be it a high-end smartphone or a laptop, an AC or refrigerator, a smartwatch or gifts, you can rely on a money loan app to finance your online or offline purchases.
These apps have simple eligibility criteria and minimal documentation requirements which makes them highly convenient option. In addition to that, online loans are offered with zero collateral and the lender does not pose any restriction on end-use.
Read on to discover the options for financing big expenses and how you can get a personal loan.
Eligibility Requirements to Fulfil an Online Personal Loan
Various lenders provide online loans that you can easily avail by fulfilling a host of eligibility criteria. Typically, when applying for the advance through a money loan app, the requirements are minimized. These requirements may, however, vary from one lending institution to another. As such, you must consult with your lender to determine if you fulfil their specific criteria for availing a personal loan or not.
For a general understanding of these criteria, below given is a list of common requirements that you would need to fulfil when availing the advance.
- Age eligibility: To avail an online loan, individuals need to be within a given age range as specified by the lender, which usually varies between 23 and 55 years and can differ based on the occupation of the borrower.
- Nationality: You must have Indian citizenship.
- Income eligibility: This may differ from lender to lender, but most online lenders seek a minimum income of Rs. 15,000. While some lenders may seek a minimum monthly income of Rs. 20,000.
- Occupation: Instant loans are offered to both salaried or a self-employed individual.
- Work experience/business vintage: For salaried borrowers, a minimum work experience of half a year in the current job is needed with a total work experience of not less than 1 year. For self-employed individuals borrowing the advance, their current business should have a vintage of at least a year along with a total experience of running the business not less than 3 years.
- Credit score: To avail an online loan for big-ticket purchases, one also needs to hold a decent credit score. Though some loan apps may offer you a loan despite a low credit score, it will impact your interest rate.
These requirements, however, vary from lender to lender. For instance, if you are availing the advance through a money loan app, the requirements are considerably eased. They do not reject your loan application just based on your credit score. In addition to that, many loan apps offer instant loans to freelancers, professionals, and people working in other jobs.
In addition to the credit score and employment, money loan apps also offer relaxation in other eligibility criteria including your age or work experience. However, you will have to provide your bank statement to prove your steady source of income.
Documents Needed to Avail an Online Personal Loan
The documents that a lending institution may require when assessing your online loan application are a representation of your eligibility fulfillment. As such, they are closely related to the eligibility criteria mentioned above. Check out the list of documents you would need to submit when availing a personal loan for a big-ticket purchase.
- KYC documents: These are documents related to one’s proof of identity and address that you must provide when applying for a loan with a new lender. The eligible documents for the purpose include aadhar card, pan card, voter id card, passport, driving license, and any other valid documents.
- Income proof: Depending on your occupation, your proof of income can vary, with income tax returns filed and bank account statements being the common documents for the purpose. For employed people, lenders may request salary slip.
- Proof of business vintage: Self-employed individuals also need to provide documents establishing the required business vintage. This may include different papers related to your business
- Proof of work experience: A salaried individual must also provide employer issued proof of their total work experience to avail the loan.
Once you are sure that you fulfil all eligibility requirements and have the necessary documents, you can proceed to apply for your online loan through a popular loan app available in the market today.
You can simply install a money loan app on your phone and proceed with the borrowing as per your requirement. To check if the loan amount remains affordable and you are eligible for the selected financing, you can also use available financing tools on the online loan app and proceed with your borrowing decision accordingly.