personal loan

A personal loan is an unsecured loan. In case of such advances, the borrower doesn’t have to use any asset as collateral and can use the funds as required. A personal loan can thus be availed for many reasons such as funding expenses of any medical emergency or travel expenses, for a wedding, etc.

Personal loans are provided by almost all leading financiers at a competitive rate of interest on personal loan and flexible repayment tenors. Some criteria and documents required for a personal loan. By meeting these criteria and providing essential details, an individual can easily avail a personal loan.

Essential documents required

There are a few essential documents required for a personal loan, viz. –

KYC documents –

Aadhaar card, Passport, Voter ID, PAN card, Driving license, etc. Such documents essentially function as ID and Address proof for the applicant.

Employee ID –


Employment identity card is vital as proof of employment with the employer as mentioned by the applicant.

Proof of Income –

Salary slips of the previous 2 months of the borrower along with Form 16, if applicable. Note that these are essential documents for the completion of the application process. Some lenders may also mandate cancelled cheques from your salary account as well.

Bank statement –

Bank statements of the previous 3 months are needed. These documents are required to match income as mentioned in the salary slips and check the other transactions for any other source of income of the applicant.

Proof of investments –

Documents of fixed deposits, mutual funds, fixed assets, shares, etc.

Photograph –

Passport-size photographs. Note that you may not be able to mediate the process quickly if the photo on your KYC and the one provided by you somehow mismatch.

Eligibility criteria

Other than the verification of the important documents required for a personal loan, a few personal loan eligibility criteria have to be met by the applicant as well. Although such criteria vary between lenders, certain basic and common criteria include –

1. Applicants should be between 23 and 55 years of age.
2. The borrower should be a salaried individual employed at an MNC, public, or private company.
3. An individual should be a citizen of India.

Other than the generic criteria, there are few other factors which also determine the loan terms which may be offered to the applicant in concern.

CIBIL score – A CIBIL score is a 3 digit numeric expression which denotes the financial creditworthiness of an individual. CIBIL maintains credit information reports of individuals to gauge their financial behaviour capability and whether they are eligible to avail financial products. Specifically, to avail a personal loan, a high credit score is important.

FOIR – FOIR or Fixed obligation to income ratio is a parameter that financiers use to determine the loan eligibility of any individual. FOIR is the ratio between the income and the monthly obligations or liabilities of an individual. To be eligible for beneficial terms on the loan, borrowers should maintain a FOIR below 60%.

In the fluctuating real estate market, the interest rate on personal loans differs between lenders. To suffice the needs and simplify the process of obtaining a personal loan, every financial institution has come up with various borrower-friendly features.

For instance, financiers like Bajaj Finserv provide attractive interest rates and other borrower-centric features on their loans such as flexible repayment tenor, easy-to-meet eligibility criteria, etc.

Refer to leading lenders with a healthy CIBIL score to enjoy minimum documentation requirements while availing an online personal loan as well as beneficial features on it. Make sure to have all such documents required handy before applying for the loan.

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