Personal Loan Eligibility Criteria
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The following factors are taken into consideration when a lender goes through your loan application. If you meet these criteria, you are eligible for a personal loan:
| Criteria | Salaried | Self-Employed |
| Age | 21 years to 60 years | 22 years to 55 years |
| Net Monthly Income | Rs.15,000 | Rs.25,000 |
| CIBIL Score | Above 750 | Above 750 |
| Minimum Loan Amount | Rs.50,000 | Rs.50,000 |
| Maximum Loan Amount | Rs.25 lakh | Rs.50 lakh |
Documents Required to Apply Personal Loan
You must submit a set of documents that lenders require when approving a personal loan application. Here are the details for the documents needed for a personal loan.
| Requirements | Salaried Individuals | Self Employed |
| Proof of Identity | Passport, Voter’s ID, Driving License or PAN Card | Passport, Voter’s ID, Driving License or PAN Card |
| Proof of Residence | Passport or utility bills | Passport or utility bills |
| Proof of Income | Bank statement of salary account for the past two years | Audited financial statement of the past two years |
If you are an NRI looking to borrow a personal loan, these are the documents that you will need to submit to the lender:
- Copy of your Passport
- Visa Copy
- Your official Email ID or the Email ID of the HR
- Bank Statements
- Salary Certificate or salary slips
- NRO/NRE bank statements of the last 6 Months
- Proof of Identity, Residence, Income, and Assets
- Recent passport-size Photographs of yourself and the guarantors
Know more about NRI Personal Loan
How to Apply for a Personal Loan Online?
Applying for a personal loan online can be a convenient and straightforward process. Here’s a step-by-step guide:
- Step 1: Research Lenders – Start by researching various lenders to find the best fit for your needs. Consider factors such as interest rates, repayment terms, fees, and customer reviews.
- Step 2: Check Eligibility – Before applying, check the eligibility criteria set by the lender such as age, income, credit score, employment status, and residency.
- Step 3: Gather Documents – Prepare the necessary documents such as identification proof, address proof, income proof and any other documents required by the lender.
- Step 4: Calculate Loan Amount – Determine the loan amount you need and ensure it aligns with your financial situation and repayment capability.
- Step 5: Visit Lender’s Website – Go to the website of the chosen lender. Most lenders have an online loan application process on their website.
- Step 6: Fill Out Application Form – Complete the online application form accurately with all the required information. This typically includes personal details, employment details, income details, loan amount, and purpose of the loan.
- Step 7: Upload Documents – Upload the scanned copies or digital copies of the required documents as specified by the lender.
- Step 8: Review and Submit – Review all the information you’ve provided to ensure accuracy. Double-check the terms and conditions before submitting the application.
- Step 9: Wait for Approval – After submitting the application, the lender will assess your application, including your creditworthiness.
- Step 10: Loan Approval – If your application is approved, you’ll receive a loan offer detailing the loan amount, interest rate, repayment terms, and other conditions. Review the offer carefully before accepting it.
- Step 11: Sign Agreement – If you’re satisfied with the loan offer, you’ll need to electronically sign the loan agreement.
- Step 12: Disbursement – After signing the agreement, the lender will disburse the loan amount to your bank account. This process typically takes a few days.
- Step 13: Repayment – Make sure to repay the loan as per the agreed-upon terms to avoid any penalties or negative impact on your credit score.
Personal Loans Offered by Various Banks
State Bank of India Personal Loan
Bank of Maharashtra Personal Loan
Central Bank of India Personal Loan
Indian Overseas Bank Personal Loan
Punjab & Sind Bank Personal Loan
Punjab National Bank Personal Loan
Union Bank of India Personal Loan
Personal Loan EMI Calculator
Use BankBazaar Personal loan EMI calculator to calculate your EMI beforehand to plan and manage your finances in a better way. Personal Loan calculator lets you check your loan eligibility and helps you compare loans offered by different banks.
All you need to do is enter the loan details, including your preferred loan amount, interest rate, tenure, and processing fee. Hit “Calculate” to check your EMI.
The result is followed by an amortisation table, which will give you a detailed break-up of your repayment schedule.
Personal Loan Fees and Charges
The following are the charges and fees of the personal loans available from various institutions.
- Processing fee
- Goods and Services Tax (GST)
- Verification charges
- Charges levied for issuing duplicate statement
- Penalty for defaults
- Penalty for pre-payment and part payment of loan
In addition to these, the lenders might also levy charges for documentation, stamping, credit administration, collection, and so on. The levy and the rates of these fees and charges differ from lender to lender. However, you can check the fees and charges which are levied by the top lenders in India before you apply for a personal loan.
Pre-Payment and Part Payment in Personal Loan
A personal loan is given for a stipulated time period. This period is known as the loan repayment tenure. After you have taken a loan, you are expected to pay the debt off by the end of the loan repayment tenure through EMIs. However, after availing a loan, if you decide to pay off your debt before the end of the loan repayment period, it is called pre-payment or foreclosure.
Types of Pre-Payment:
There are 2 types of pre-payment. They are full pre-payment and part pre-payment and part payment.
1. Full Pre-Payment:
If you are paying off the whole outstanding loan amount before the end of the loan repayment tenure, it is known as full pre-payment.
Advantages of full Pre-Payment:
- You can avoid paying hefty interest on your loan amount.
- If you have the money to pay off your debt completely, you might as well get rid of the debt.
- You can avoid paying pre-payment interest as well, if you have taken the loan from a lender who does not charge an interest on pre-payment of the loan.
Disadvantages of Full Pre-Payment:
- If your lender charges a penalty on pre-payment of the loan amount, you might have to pay a big chunk of money for pre-paying your loan.
- Before you foreclose a loan, check the other factors related to it. Foreclosing a personal loan means that you would be paying out a huge sum of money at once. This might not always be the best option.
2. Part Pre-Payment:
If you are paying off a part of the outstanding loan amount before the end of the loan repayment tenure, it is known as part pre-payment.
Advantages of Part Pre-Payment:
- You can choose to pay off a part of your outstanding loan amount if you have some readily available money.
- Part paying your loan will reduce the outstanding principal amount which, in turn, will reduce the effective EMI amount.
- The overall interest that you pay will also reduce significantly.
Disadvantages of Part Pre-Payment:
- If you do not make the part payment soon enough, you will not be able to maximize your savings.
- If your lender charges a fee for part payment of personal loans, you might have to spend a significant amount of money for the same.
Courtsey To Bankbazaar
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