Lenders can feel confident in your identity and ability to repay since you will be required to provide proof attesting to both. Prior to accepting a borrower for a personal loan, lenders will often want to see the following documents:
- Passports, Aadhaar cards, or valid driver’s licences, among other forms of official identification, are needed.
- Proof of residency in the form of a current utility bill, driver’s licence, or valid Indian passport
- Proof of your financial stability in the form of pay stubs, tax returns, or bank statements.
Since self-employed people do not get regular paychecks from an employer, it is up to them to prove to lenders that they have a steady income. To do this, you may either provide the lenders with your company’s registration certificate or provide them with your company’s balance sheet and profit and loss statement for the previous fiscal year. You may choose one of these two paths.
The paperwork required for your slick cash loan approval may vary depending on the lender you choose with. Therefore, it is preferable to have all the documents the lender demands ready before beginning the application process. The list of required documentation may be reviewed either on the lender’s website or by doing a quick online search. You have two choices here. If you want to quickly complete the application process, choose a lender that requires little paperwork.
Your task is to track down a lender who is prepared to loan you the required sum of money.
It is common practise for lenders to want a CIBIL score that is at least proportional to the loan amount if you want to borrow a larger sum. Therefore, you need to check with your lender to see whether your CIBIL score is high enough to qualify for the loan amount you want. The amount of money you may borrow depends on many factors, including your credit history, how much you earn regularly, and how much of a loan you can be approved for. Lenders often won’t provide you a loan that’s more than ten times your monthly earnings. The highest loan amount you might be approved for with a monthly income of Rs. 25,000 and a CIBIL score of 750 is Rs. 25,000,000. If you wish to borrow a certain sum of money and your application is denied, you’ll have wasted a lot of effort for nothing. You’ll be wasting your time applying for a loan if you don’t first find out whether you qualify for the amount you desire.
The Loan Choices
Before applying for a loan, you should determine how much you can afford to pay each month toward the EMI. The most convenient method to do this is by using a personal loan EMI calculator that can be found online. Your Equated Monthly Installment (EMI) payments shouldn’t be more than half of your take-home pay each month.
Determine what loan term works best for you.
An individual loan typically has a payback duration of between one and five years. However, there are a select few banks that would be willing to provide you a personal loan with a repayment period of up to seven years.