Frequently Asked Questions

Find answers to all your personal loan questions, from eligibility and documentation to approvals and more.

  • 1. What types of expenses can a personal loan be used for?

    Personal loans can be used for almost any personal financial need, including medical bills, education, home improvements, and debt consolidation.

  • 2. What are the eligibility criteria for a personal loan?

    The eligibility requirements for a personal loan are as follows:

    For Salaried Professionals:

    • - Minimum Age: 21 Years
    • - Minimum Salary: Rs.15,000 Per Month (Should reflect in bank statement)
    • - Minimum Job Duration: 1 Year

    For Self-Employed Individuals:

    • - Minimum Age: 21 Years
    • - Income Tax Return Of Minimum 1 Year
    • - Minimum Business Duration: 1 Year
  • 3. What documents are required to apply for a personal loan?

    Here are some of the common documents needed to apply for a personal loan:

    For Salaried:

    • - Aadhaar Card
    • - PAN Card
    • - Residence Proof: Rent agreement or Utility bills
    • - Bank Statement
    • - Income Proof: Salary Slips or Form 16

    For Self-Employed:

    • - Aadhaar Card
    • - PAN Card
    • - Residence Proof: Rent agreement or Utility bills
    • - Bank Statement
    • - Balance Sheet
    • - Income Computation
    • - Service Tax Registration, License, Registration Certificate
    • - Income Tax Returns

    Based on your profile and the guidelines, the lender may request additional documents.

  • 4. Does a person's credit score influence their approval for a personal loan?

    Yes, your credit score is an important consideration during the loan application process. It is one of the most important factors lenders use to determine your creditworthiness.

  • 5. What can I do to improve my chances of getting a personal loan?

    To improve your chances, maintain a good credit score, have consistent income, and provide accurate documentation during the application process.

  • 6. Do personal loans offer any direct tax advantages?

    Personal loans do not provide any direct tax benefits; however, if you use a personal loan to invest in your business, renovate your home, or pay for your education, you may be able to deduct the interest you pay. For more information, please contact your CA or tax advisor.

  • 7. What other factors, besides credit scores, do lenders consider when approving personal loans?

    Lenders take the applicant's age, income, and job stability into account in addition to their credit score.