Personal Loan Application – A Means to Gratify Desires Instantly

Earlier the people use to postpone their desires and wishes due to the shortage of money and wait till the time they accumulate the required amount. Till they use to arrange the funds, they lost the interest in the thing they desired earlier. This is because the pleasure derived by instant gratification cannot be received by delaying things. Also, the right things, done at right time reap good results. Therefore in today’s time, people do not leave things on time and spontaneously grab the opportunity by arranging financial credit. There are various types of loan products available in the market. But the loan that is sanctioned in the shortest time possible is a personal loan. And because of net banking, it has become easier to drop a personal loan application. But while submitting the personal loan application form the applicant must fill the necessary details.

Personal Loan Application Form:

To avail the loan facility one has to fill in the application form. The application form is available at all the bank branches. The candidates can apply for the loan online as well.

need to fill in the following details-personal loan application

  • Personal Details along with the photograph
  • Details of Co-obligant/ Guarantor along with recent photograph
  • Profession Details
  • Income Details
  • Details of Assets and Liabilities
  • Purpose of taking the loan
  • Repayment Details

Also, the candidate is supposed to submit the requisite documents. The documents required are:

Identity Proof –  PAN Card/ Passport/ Election Card/ Photo Identity issued by Government, Defence Services, Public Sector undertaking/ Driving Licence/ Photo Credit Card/ Employee’s ID Card, Letter/card issued by UIDAI containing the details of name, photograph, address and Aadhaar number

Income Proof – Bank Statement for last 6 months, post dated cheques and electronic clearing mandates, legal documents as stipulated by the finance company, collateral security as advised by the finance company, any other document as advised by the finance company

Residence Proof – Bank Account Statement/ Latest Electricity Bill/ Latest Telephone Bill/ Latest Credit Card Bill/ Employer’s letter certifying current mailing address/Passport (valid)

Signature Verification– Valid Passport /Pan Card/ Processing Fee Cheque/ Banker’s Verification Letter

Factors Affecting Personal Loan Eligibility:

Once the application is submitted, the candidate’s profile is evaluated thoroughly. There are various parameters based on which the eligibility of the candidate is judged. The major factors affecting the eligibility are as follows:

Monthly Income – The most important criterion that helps in setting the disbursal amount is the income of the candidate. The person earning a handsome salary or high revenues is likely to get higher loan amount.

Age – When it comes to applying for a loan, the age of the applicant also matters. The age limit varies from lender to lender but in general, ranges from 21- 60 years.

Monthly Expenses – As the lender assumes that the borrower will be repaying the loan from the monthly income excluding expenses, so the applicant’s savings become a concern while calculating the eligibility.

Any Other Loan – The lenders count the applicant’s obligation to repay any other loan while deciding the disbursal amount. If the applicant has the capacity to repay both the loan simultaneously the new loan is sanctioned.

Credit History – The healthy credit history of the applicant builds up the CIBIL score which makes it convenient for the applicant to avail a loan.

Job Stability – The applicant should have a stable job and have the experience of working with the same company for at least an year. The self-employed applicant too must have a regular source of income.

Personal Loan Eligibility Calculator:

The lender checks your repayment capacity by using the personal loan eligibility calculator based on which the disbursal amount is decided. The following inputs are required to compute the eligibility value:

  • Income
  • Expenses
  • Savings
  • Personal loan interest rates
  • Tenure
  • Per lakh EMI

Now, how is the amount decided? The formula used to compute the value is:

Personal Loan Eligibility Amount = ₹ 1,00,000 x Savings/Per Lakh EMI

For the better understanding, let’s solve it using an example –

Illustration: The monthly income of an employee working in a reputed company is ₹ 80,000. He wants a personal loan for some reason. After meeting all his expenses he is able to save 50% of his income which is ₹ 40,000. He applied for the personal loan in a bank. The bank after considering his income calculated the eligibility amount in a manner specified below:

Per Lakh EMI for –

Tenure – 4 years

Interest Rate – 14.50% p.a.

EMI Amount = ₹ 2,758

So, the eligibility amount = 1,00,000 x Savings/EMI

= 1,00,000 x 40,000/2,758

= ₹ 14,50,327

Therefore, the candidate having a monthly income of ₹ 80,000 can avail a loan of up to ₹ 14.50 lacs.

Now with the availability of these unsecured quick loans, there is no need to keep your longings pending. Just file the application and access your dream at the right time.

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