Financial technology (FinTech) has enhanced the lives of numerous individuals. Technological advancements in the financial sector have made it easier for people to access loans through online lending platforms but it’s equally important to be aware of fraudulent activities on online platforms. The Reserve Bank of India (RBI) has advised the public against unauthorized digital platforms that charge a higher interest rate on loans, hidden charges, and have unscrupulous loan recovery methods.
The RBI has set up a Working Group (WG) to monitor digital lending activities and establish a regulatory approach in all aspects of the financial sector. Now that digital lending is more accessible, you can easily apply for an online personal loan at affordable rates. To qualify for a loan, you need to make sure you fulfil the basic loan eligibility criteria. The lenders consider factors like the borrower’s income, employment, credit score, etc., to determine her/his creditworthiness for a personal loan.
Let’s have a look at five ways you can help boost your chances to get an online personal loan.
1.Maintaining A Good Credit Score
An individual’s credit score determines their creditworthiness for a loan. A good credit score is a sign of healthy finances. On the other hand, a low score is a result of irregular or missed payments. Such behaviour has a negative effect on the credit score and leads to rejection of your loan application. Hence, it is crucial to maintain a good credit score to qualify for a personal loan. The personal loan interest rate may vary from lender to lender based on the borrower’s eligibility. With a Bajaj Finserv Personal Loan, you can avail a high loan amount of up to Rs. 25 lakh at interest rates as low as 12% per annum.
2.Fulfilling The Eligibility Criteria
Every lender has its own eligibility criteria for personal loans. There are various parameters on the basis of which lenders determine the creditworthiness of a borrower such as age, monthly fixed income, credit history, other financial obligations, etc. The eligibility criteria for salaried and self-employed individuals may slightly differ. Given below are the basic loan eligibility criteria for personal loans.
For Salaried Individuals
- The borrower must be between 21 to 60 years of age to qualify.
- Only Indian residents are eligible for the loan.
- You must be an employee at an MNC, private, or a public limited company with a work experience of at least 2 years.
For Self-Employed Individuals
- The borrower must be an Indian resident to qualify for the loan.
- The age of the applicant must be between 22 to 65 years.
- Eligible applicants must have a business vintage of at least 4 years.
3.Setting Documents In Place
Just like the loan eligibility criteria, there are certain documents required when you apply for a personal loan. Make sure you have all your documents in place to get faster loan approval. Applicants need to submit basic documents for identity proof, address proof, and bank statements along with the personal loan application form. The following is the list of documents required to apply for an online personal loan.
- Identity proof such as PAN card, Aadhaar card, passport, etc.
- Documents for proof of residence such as passport, Aadhaar card, electricity bill, etc.
- Salaried applicants need to submit salary slips of the last three months.
- Self-employed applicants must submit bank statements for the last six months.
- Documents for office address proof such as utility bills, GST, or VAT Registration (for self-employed).
- ITR (Income Tax Return) filing or Form-16.
- Passport size photographs.
4.Go Through The Loan Repayment Plan
When you’re applying for a loan, it is best to plan your repayments ahead of time. Details like your loan tenure, payment reminders, EMI deadlines, and the applicable fee must be kept in mind. Also, check whether the lender allows early repayment on loan (foreclosure) and if there are any charges applicable for the same.
5.Check The Terms and Conditions
The terms and conditions applicable to personal loans may vary from one lender to another and a borrower must abide by these till the loan is cleared. Violation of any terms might lead to a penalty charge. Thus, you need to ensure to read the terms and conditions carefully and choose a loan that fits your requirements.
The above-mentioned tips will surely help you get a personal loan with ease. To get an instant personal loan online, apply for a Bajaj Finserv Personal Loan with the Finserv MARKETS app, where you can avail a high loan amount of up to Rs. 25 lakh. The online application process is quick, and the funds get disbursed within 24 hours of loan approval. At Finserv MARKETS, you can take help of the online personal loan EMI calculator to get an estimate of your EMI repayments and manage your finances accordingly.