A Personal Loan is a credit you can avail to meet your financial requirements. A significant advantage of Personal Loans is they are multipurpose. Whether it is a medical emergency, planning your wedding, or debt consolidation, Personal Loans can help you with it all. Easy to meet eligibility for Personal Loan is another factor that makes it stand out from the rest.
Any individual in the age group of 22 to 60 years, salaried or self-employed, having a minimum income of Rs. 20,000 per month, can apply for a Personal Loan. The application and documentation process for Personal Loans is simple and known to common people. However, the verification process has remained under wraps. During verification, the bank checks the information and documents you have provided.
If all your details and documents are in order, the Personal Loan request gets approved. However, if your details and documents are unclear, you can expect delays in the Loan approval or rejection. Following are the aspects checked during Personal Loan approval:
KYC details
KYC stands for Know Your Customer. Your identity and address details are asked under the KYC section. You need to submit your PAN card, Aadhaar card, and driving license to prove your identity. Generally, the KYC details are verified through a video call via the Banking App. Keep all your KYC documents handy and sit in front of a clear background so the verifier can see you and your documents.
Credit score
Your credibility as a borrower is established through your credit score. A higher credit score translates to higher credibility and vice-versa. A credit score of 750 points and more is necessary for Personal Loan approval. If your credit score is weak, you will likely face challenges with your Loan approval. In such a case, the bank offers you a Loan at a higher interest rate or rejects your application altogether.
Income
Income is another factor the bank verifies. Your income gives the bank an idea of your repayment capacity. A higher income indicates better repayment capacity and lesser chances of default. Banks readily offer Loans to such applicants. A higher income amount also helps you apply for a higher Loan amount. Using a Personal Loan eligibility calculator can help you understand where you stand.
The calculator clarifies the Loan amount you can avail of based on your income and other parameters.
Employment status
Your employment status is a factor that is closely related to your income. Working for a reputed company adds value to your profile. As the bank checks the company’s reputation, they know you will receive your salary and make timely payments. The bank approves your Loan request without any hesitation or doubt.
Note: If the bank notices errors with the details and documents you have provided, they disqualify your Loan request and may even blacklist you.
