The answer in simple words- Yes. Any person eligible to take a personal loan can submit a personal loan application to the lender online, however, to ensure that you’re eligible to apply for a personal loan and to your loan request approved with no hassle, there are several factors to be mindful of. As a result, people can apply for a personal loan online and enjoy its benefits.
A personal loan is short to a medium-term unsecured loan granted by the lender, which does not require you to keep any kind of collateral or security. They are often dispersed within a period of a few hours to a few days, and the paperwork is significantly minimal. A key feature of a personal loan is you can use the disbursed amount for any reason you deem fit without any constraint. Thus, a personal loan is often taken to meet a variety of needs ranging from urgent medical problems to finance planned expenses like house reconstructions, vacations, weddings, etc.
If you satisfy the following criteria, you certainly can put forth a personal loan application to the bank. Do note that banks may specify their different eligibility criteria, so make sure to check them out.
|Age limit||21 to 60 years|
|Employment Type||Salaried, Self-employed, Professionals like CA/CS, Businessmen, Retired Pensioners, Students|
|Employment Status||Employed/In-business for at least 2 – 5 years|
|Monthly Income||Minimum INR 5,000 and above|
|Work Experience||1-3 years and above|
|Credit Score||CIBIL score of 750 and more|
|Maximum EMI||Up to 65% of Net Income|
How to use an eligibility calculator online to apply for a personal loan?
Many banks and financial organizations offer the facility where you can quickly check your personal loan eligibility with an online calculator. Most platforms will offer you this facility completely free of cost.
You will need to follow the following steps; however, depending upon bank to bank, these steps may vary:
Visit the bank’s official website and go to the personal loan section. You will have to select the employment type, enter the company’s name, monthly salary, or earnings, and complete the authentication process. Upon successfully carrying out the process, you will be shown all the personal loans and their details suitable for you.
The list of documents each lender requires varies from the other. However, here is a comprehensive list of documents you must keep ready before you apply for a personal loan online:
- Identity proof: Aadhaar Card/PAN Card/ Passport/Voter’s ID
- Address Proof: Aadhaar Card/ Lease/ Utility Bills (maximum 3 months old)/ Driving License/ Passport
- Income Proof: For Salaried people: last 6 months Salary Slips/ Bank Account Statement and for Self Employed and Professionals: Last Year’s ITR/ Balance Sheet and Profit & Loss Statement/ Bank Account Statements
Important factors that can affect your personal loan application:
- Your location: Where you live sometimes plays a vital role in deciding whether the bank will grant you a personal loan or not.
- Income: More often than not, the fate of your personal loan application rests upon how much you earn. The higher and steadier your income, the higher are the chances that the bank will approve your application.
- Housing: If you live in your own house, there are better prospects of having your personal loan application approved. The reason behind this is that living in a rented house reduces your net monthly income, consequently reducing your repayment capacity.
- Current debt scenario: If you already have taken loans and they are not repaid yet, or if your debt-to-income ratio is too high, the banks are likely to hesitate to provide you with more loans.
- Employer: The company for which you work can also be a significant determiner of you getting a loan. If you are working for a well-known company with a good reputation, you can have stable employment.
- Credit history: Regardless of whether you have taken loans in the past, if you have an outstanding credit score, the lenders will consider your personal loan application since it shows that you are able to repay the loans taken. However, if there are incidences of you missing the payments in the past, it is likely that the bank will reject your application.
After you have submitted the personal loan application online, the bank’s representatives will contact you and confirm as well as verify the details. The bank will also arrange to pick up the documents’ physical copies to process the application further. Once the verification process is completed, you will be notified by the bank if your application is approved or rejected. The loan amount is deposited into your bank account once your application is approved, and you have signed the loan agreement.