Know the Eligibility Criteria and Documents Required for a Loan

We are living in the country where getting financial assistance has become a strenuous task because of lack of awareness. Here is the small initiative to add up to the knowledge for the people who are willing to take loan. Boost your knowledge and move a step ahead in the path of achieving financial independence. Loan can become a ladder to achieve many dreams and aims. The financial institutions have set certain eligibility criteria for the people who are willing to take loans. But due to unawareness, many times people left disheartened because of disapproval of the loan. Mentioned below is the list of criteria for loan approval.

Eligibility Criteria for Loan

Listed below are the loan qualifying factors or criteria for loan eligibility set by the banks, NBFCs or other financial institutions.

• Credit Score: Credit score is one of the considerable factors for determining the eligibility criteria for loan. It is a three-digit numeric code generated by the Credit Information Bureau (India) Ltd. Usually a person having CIBIL score more than 700 has more chances of getting a loan. Boost your credit score to increase your chances of getting a loan.
• Income: How much loan amount you can get is determined by your monthly income. A person having minimum income of Rs. 20000 is eligible for getting a loan easily. But this depends upon the city you are living in and earning.
• Debt-to-income Ratio: Debt to income ratio is the calculation of your income divided by the EMIs that a person is paying per month. The ideal debt-to-income ratio is less than 36%.
• Age: A person having age 21 years is eligible for getting a loan in our country.

What are the Documents Required for Loan?

• Duly Filled Loan Application Form: One of the required documents for a loan is duly filled application form. This document requires your personal details like cibil score, reason for applying loan, personal details. Carefully filled application form with correct information is the first step for the people who are applying for a loan.
• Identity Proof: Identity proof includes the KYC documents like voter ID, Aadhaar Card, PAN Card details, passport size photograph.
• Address Proof: A recent utility bill can fulfill the purpose of address proof for the people who are applying for a loan.
• Income Proof: How much you are earning is the general question that a bank official will ask you if you are thinking of applying for a loan. Recent three months salary slips will be required while applying for a loan.

Conclusion

My Mudra is growing with the vision of creating a financially stable society and changing the perspective of people who think loans are a burden on their shoulders. My Mudra shall change it into a loan, a planned decision that shall help you to quench your financial thirst quickly. Get to know are you loan qualified or not? Get details of the eligibility criteria of loan and be financially independent. Apply for a personal loan, get the documents done and enjoy a quick disbursal of loan.

Also read: 7 Tips to Avail a Personal Loan at a Lower Interest Rate