The Documents needed for obtaining a Personal Loan.

The documentation process can be different in accordance with the particular lender. However, the exact same could be divided in two components - KYC & Financial Records and here are the typically requested documents:

KYC Records
  • Passport Size Photograph
  • Identity Proof Aadhaar, PAN, Passport, DL or Voter ID
  • Home Evidence - Electricity Bill, Mobile Bill or Water Bill
Financial Records
  • Latest 3 month's bank statement of your salary accounts
  • Last 3 month's wages slips

Eligibility Criteria

Eligibility for the loan varies from bank to bank and also depends upon the type of the loan. however, the general criteria depend upon your

  • Age
  • Occupation
  • Income
  • Capacity to repay the loan
  • Place of residence

Compare Interest Rates

Bank Interest Rate Action
HDFC Bank 10.50%* Apply Now
HDB 13.99%* Apply Now
IndiaBulls 11.99%* Apply Now
Bajaj Finserv 11.49%* Apply Now
Yes Bank 10.25%* Apply Now
ICICI Bank 10.50%* Apply Now
Standard Chartered Bank 10.50%* Apply Now

Personal Loan

A personal loan is an unsecured form of credit in which borrowers do not require to submit any form of collateral or security at the time of making a loan application, unlike home and gold loans. It can be availed by both i.e. salaried and self-employed professionals. Personal loans are a multi-purpose loan which can be used for any of the purposes like wedding, higher education, to consolidate debt, home refurbishing, travelling, etc. The lenders generally do not ask the purpose while availing this loan. Being an unsecured form of credit, the rate of interest is generally very high. Borrowers can apply for best personal loans through multiple lenders after checking their eligibility online on bookmymoney.

Benefits and Features of Personal Loan

Collateral-free loan: The best part about the personal loan is unsecured in nature and it does not require any collateral or security when availed. So, if you require instant funds, you can apply without worrying about collateral.

Minimal documentation: Nowadays, availing a personal loan has become easier due to the hassle-free documentation and verification process online. In the case of instant personal loan, the disbursal process is very fast due to the minimum documents required for approval.

Easy and quick approval: Personal loans have lesser turnaround time, they can be approved quickly and easily after applying. This is why they are the best form of a credit to go for at the time of financial emergency.

Variety of uses: A personal loan is a multipurpose loan which can be put to use for any purpose like wedding, higher education, debt consolidation, travelling, etc.

Personal Loan Eligibility Criteria

Any salaried or self-employed individuals can apply for a personal loan online. However, this is very important to note that the eligibility criteria might differ from one lender to other. Given below are the basic eligibility criteria that are common for most of the lenders. You can check your eligibility at bookmymoney before applying for the loan.

Credit Score: Having a good credit score of 750 or above is important to get your loan application approved easily. So, you must check your credit score before applying for the loan.

Employment stability: Job stability is very important when it comes to getting an instant personal loan Online. For most of the lenders, a salaried professional must have 2 years of working experience with 1 year in the current job and a self-employed individual must have a minimum of 2 years experience in the current job.

Income: A salaried individual must have a minimum income of Rs. 15,000 in case of non-metro cities and Rs. 20,000 in the case of metro cities.

Age: Borrowers also need to meet the age criteria set by the lenders. For a salaried professional age, the bracket is usually 21 to 60 years whereas for a self- employed individual age should be between 21 to 68 years.

Documents required for Personal Loan

The set of documents required while applying for a personal loan online are-

For Salaried Individuals-

Identity Proof: Passport, Driving License, PAN Card or Voter’s ID

Residence Proof: Passport, Driving License, Voter’s ID or utility bills

Income Proof: Latest 3 months’ bank statements showing salary credit

For Self-employed-

Identity Proof: Passport, Driving License, PAN Card or Voter’s ID

Residence Proof: Passport, Driving License, Voter’s ID or utility bills

Income Proof: Audited financial statement of the past two years

Quick tips to improve your chances of personal loan eligibility-

Most of the banks follow stringent rules and policies while lending. So, the borrowers need to follow these simple tips to improve his/her chances of getting a loan approved easily.

  1. Try to maintain a healthy high credit score

    As you know credit score is one of the most important eligibility factors that represents a snapshot of your past credit behaviour. To get the best personal loan, a score of 750 or above is required. If you have a lower credit score than this then there is a possibility that your loan application might be getting rejected. So, before apply for a personal loan, don’t forget to check your credit score online to improve your chances of approval.

  2. Pay all your outstanding debt

    Before applying for a personal loan, make sure that you reduce your existing debts and credit card bills. If you already have applied for multiple loans or credit cards in your name, getting another loan won’t be easy. Your debt-to-income ratio should not be less or more than 15 percent which is considered ideal in case of servicing a single loan. If you are servicing multiple loans, the combined EMIs should not be more than 50 per cent of your income.

  3. Don’t apply for too many loans frequently

    Sometimes borrowers make mistakes and they make loan applications with multiple lenders to get a loan fast. Each time you will apply for new credit, it will get captured in your credit report and thereby bringing down your credit score. So, at least a gap of minimum 6 months is needed to apply for another loan.

  4. Disclose all your sources of income to the lender

    While applying for the loan, lenders also consider your income as one of the important eligibility criteria to evaluate your ability to repay the loan. This is why you should always showcase all your sources of income apart from your salary to the lender. This will help you prove to your lender that you have enough resources to make the timely repayment.

  5. Apply for the loan based on your repayment capacity

    You should always apply for the loan based on your repayment capacity. This will help you pay back your loan well on time without facing any problem. You can make use of online personal loan eligibility calculator to calculate the EMI amount that you need to pay each month. After knowing the EMI payments depending upon the loan amount that you need, you can request your lender for that loan amount.

FAQs on Personal Loan

Which bank is best for a personal loan?

Multiple lenders offer personal loans at lowest interest rates. Some of the best lenders that offer instant personal loan are HDFC Bank and ICICI Bank. The rate of interest of these banks is in the range of 10.50% to 11.25%. You can check multiple lenders on bookmymoney to get the best offers on personal loan online.

How can I get a personal loan?

A personal loan can be availed easily online by following these simple steps:

Step 1: First determine how much loan amount do you need and why do you need a personal loan

Step 2: Check loan eligibility to know whether you are eligible to apply for a loan or not

Step 3: Third step is to calculate your loan EMIs

Step 4: Approach the online digital lender or financial institution

Step 5: Submit the relevant documents and wait for the approval

Is it good to apply for a personal loan?

Yes, personal loans could be your saviour at the times when you are facing a severe financial crunch. Applying for them is surely a good idea to meet your immediate financial requirement. Make sure you have an excellent credit score of 750 or above while applying for it.

What is the minimum salary criterion to get a personal loan?

The minimum salary to get a personal loan is Rs. 15,000 in non-metro cities and Rs. 20,000 in metro cities.

What is the tenure of a personal loan?

The tenure for personal loans ranges for a short period usually between 12 months to 60 months

Why should I apply for a personal loan?

Personal loans are best to meet your short term requirements. You can use the funds taken from a personal loan for meeting requirements like wedding, travelling, paying credit card debts, medical emergency, higher education etc. Make sure you have a good credit score before you apply for a personal loan otherwise your loan would not be sanctioned. You can avail a loan through bookmymoney for a hassle-free personal loan application.

Can I apply for a personal loan if I have no job?

No, it would be harder for you to avail a personal loan if you are not employed. In this case, lenders are less likely to offer you a loan as they doubt your ability regarding payment of the loan on time.

What is the CIBIL score required for a personal loan?

A CIBIL Score of 750 or above is needed while applying for a personal loan. Higher the credit score better are the chances of loan approval.

I want a personal loan. How can I get a personal loan?

You can apply for an instant personal loan in several ways. You can visit the bank branch or get in touch with the salesperson of the bank or an NBFC. You can also apply through bookmymoney and compare the rate of interest of different lenders at one place.

Is balance transfer available on personal loan?

Yes, a facility of a balance transfer is available on a personal loan. If at present you are paying a higher rate of interest then you can opt for this facility and reduce your monthly burden.

Can I be approved for a personal loan if I have a bad credit score?

Yes, you can apply for the loan even if you have a low credit score. In this case, you will be charged a high rate of interest and alternatively, you can apply for a loan with a co-applicant to increase your chances of loan eligibility.