Financial emergencies always arrive uninvited. You never know when you would need an extra amount or require some cash to meet an urgent need. It could be a medical emergency, looking at the current COVID situation, or just another investment for your business or even a wedding or holiday to fund. Having some extra cash in hand, no matter what the situation you are in, can be a great idea in today’s world. To meet your financial needs, you can rely on personal loans. This type of loan is now very common among the young generation and can be easily availed of.
If you know what personal loans are and wish to borrow the same for your cash needs, you must also know the eligibility criteria before you apply for the same. If you are looking for personal loan eligibility and application process, this article is the right place to be at. Since personal loans are a fairly new concept for a lot of people and most people do not know how these loans work, this article will be your ultimate guide for personal loans. You must also be looking forward to knowing, who can apply for a personal loan and the amount you can borrow easily without much paperwork and this is where your search for this ends.
In this article, we will be looking at what are personal loans, how to apply for personal loans online, a personal loan eligibility calculator, and the benefits of borrowing this loan. By the end of this article, you will be all set to check your eligibility for borrowing a personal loan and applying for the same using online platforms. We will also be introducing you to a trustworthy and best-in-class online platform for personal loan borrowing- Loaney.
What is Loaney?
Money borrowing, as many people believe is a tiresome task that requires you to line up outside lenders’ places or banks, present a huge number of documents, submit collateral and then work even more to pay back the amount along with the interest on it. People also believe that once you borrow an amount you get stuck in the loop of repaying and borrowing over and over again. While this might have been true in old times, this is not at all the case for personal loans that can be applied online.
Financial services and banking have made a game-changing shift to the digital space and so has money borrowing and lending. One of the most reliable and trustworthy digital platforms for borrowing personal loans is Loaney.
Loaney is an online platform that offers its clients a personal loan of up to Rs. 15,000. This loan is offered for a very low-interest rate and for short repayments tenures. You do not need collateral, a guarantor, or even specify the reason for your borrowing the amount while applying for a personal loan on this platform. No paperwork or income proofs are required and you can easily register yourself with just a few readily available documents within a few clicks. Loaney is a fast and secure method of borrowing a personal loan. You can also check your personal loan eligibility and then apply for an instant personal loan which is approved within a few minutes from the comfort of your homes.
Let us take a look at what an instant personal loan is and what we need to know about it before applying for the same and borrowing the required amount.
What is a Personal Loan?
Unlike traditional loans, these days, loans can be borrowed without submitting collateral. This is known as unsecured debt which is called a personal loan. As the name suggests, the amount borrowed as a personal loan can be used for the personal needs of the borrower. You do not need to present a guarantor while borrowing any amount of money as a personal loan and also do not need a lot of documents to apply for the same. One of the major benefits that attract most people is that the interest rate at which these loans are offered is low and the duration of the repayment is shorter. The eligibility criteria for this type of loan is simpler and you can even find personal loans eligible for students and self-employed professionals.
A personal loan is easy to apply for. All you need is your identity proof and a bank account that is linked to net bank services and mobile numbers. This makes it a preferable option for homemakers, self-employed persons, small business owners, students, and people for whom procuring a salary slip might not be possible. Since you do not need any documents that might be hard to find, this loan is useful for emergencies when you might not have much time before the money is required. A personal loan can be used for a variety of purposes and your lender need not know the reason for borrowing the money. You can easily use the borrowed amount for any urgent expenses, debt consolidation, or even investment.
In the next section, we will take a look at the types of personal loans which will help you understand the reasons why people borrow a personal loan.
Types of Personal Loan
As mentioned previously, there does not have to be a specific reason for borrowing a personal loan. You can easily use this amount that you have borrowed for a variety of purposes. Let us take a look at a few reasons why people borrow personal loans and what reasons can you borrow a personal loan for.
- Debt Consolidation
- Higher Education or Education Abroad
- Funding a vacation or a foreign trip
- Investing in your small business
- Managing Wedding expenses
- Renovating your dream home
- Buying new gadgets or machinery for yourself or your business
- Medical Emergencies
- A new vehicle purchase
- Paying off credit card bills
- Improving your credit score
All You Need To Know About Personal Loans
In this section, we will take a look at the important details about personal loans, including how to apply for a personal loan, the documents required for applying, and the personal loan eligibility criteria.
A personal loan can be applied for easily while sitting at home. You do not need to make countless rounds to banks or lenders to apply for and get your personal loan approved. You can use Loaney to register yourself and then follow these few steps to apply for a personal loan:
- The first step is to enter your personal information and details. Make sure the information is valid and genuine. This information is to be filled in the application form for borrowing a personal loan.
- Your submitted application form is reviewed by the website and all the information is verified.
- Once approved, the last step is lending the money. The amount is transferred to your bank account and can be withdrawn by you as required.
The following documents are required while applying for your personal loan on Loaney:
- Pan Card
- Aadhar Card and the mobile number linked with it
- A picture of the applicant
- Bank Account number with net banking
Now that we know the basic requirements for applying for a personal loan, let us quickly take a look at the personal loan eligibility.
Personal Loan Eligibility Calculator
Before you apply for a personal loan, you must be aware of the eligibility for the same. The personal loan eligibility for students or working professionals or homemakers will be different. You must make sure to use a personal loan eligibility calculator online to find the eligibility criteria for yourself. The common eligibility for a personal loan is as follows:
- You must be a citizen of India who is 18 years old or above
- You must have a Pan Card and an Aadhar Card
- You must have a monthly income of at least Rs. 25-30k
- You must have a CIBIL score of 750 or more on a scale of 300 to 900
A CIBIL score is a historical record of your credit card and borrowing activities. A good credit score is useful in easily getting a personal loan approved. This score can be improved by keeping a check on credit card expenses and timely paying bills.
This is the general personal loan eligibility criteria. If you apply for a personal loan on Loaney, you only need to be an Indian citizen of 18 years of age or above and must have a Pan Card and an Aadhar card. You can also check the eligibility and other details using a personal loan EMI calculator online.
In this section, we have answered some frequently asked questions about the personal loan eligibility calculator and more.
1. What is the Minimum Salary required for a personal loan?
The minimum salary requirement is INR 25-30k for applying for a personal loan.
2. What is the maximum age to avail of a personal loan?
There is no maximum age limit for availing of a personal loan. You must be at least 18 years old and a citizen of India to avail of a personal loan.
3. Can a person avail of a personal loan and a home loan simultaneously?
Yes, you can apply for both of these types of loans at the same time. You can apply for a personal loan online, via platforms like Loaney.
4. How to get a personal loan without a salary slip?
You can get a personal loan of up to Rs. 15,000 on Loaney without submitting a salary slip.