Sarthy was travelling for work when he came across a big business opportunity. But he had one limitation. He needed a few lakhs of rupees to take on this new project. Sarthy was worried because he did not have any extra savings. He had used his other funds to start his business. But this new opportunity could bring a lot of profits to his firm. He did not want to let go of it.
Did Sarthy need to take a personal loan?
Yes, that would be the best way to make the most of the new opportunity. However, being self-employed, he did not know how to go about it. So, he asked a friend. He learnt that he was eligible to take loans under different criteria.
There are various criteria that decide your eligibility for personal loans. You could come under the following brackets.
Salaried individuals: Are you working at a company? Are you aged between 21 and 58 years? Do you get a monthly salary? Then you are eligible for a loan from your lender. You must be a salaried individual to get a loan. You could work with an MNC, a public limited company, a cooperative firm, a state government, or the central government.
You need to look out for certain criteria. These include age and minimum income. Also, check the most and least loan amounts you can take. You would need to show a few documents, of course. These include your identity proof and address proof. The lender may also ask for bank statements and salary slips of the past three months. The criteria for various lenders may be different. Make sure you check the list of documents that you need to submit. You can repay this loan over 12 to 72 months.
Self-employed professionals: Do you own a business? Are you a self-employed individual looking for a personal loan? If yes, you too can get a personal loan once you meet certain criteria. The eligible age group is within 25–65 years. Lenders specify a certain minimum income. This could be around Rs. 2 lakh per year. You can check the highest and least loan amounts that you are eligible for. Also, check the time for repayment. This is usually listed in the eligibility section under personal loans.
You would need to submit identity and address proof as well. Self-employed professionals also need to submit other documents, including bank statements for the past six months, a proof of the highest educational degree, and the latest income tax return certified by a CA. The lender’s website usually mentions these criteria, but you can always call them for more details and enquiries.
Housewives: Women who stay at home can also get personal loans. There are loans for them with no collateral and low-interest rates. For these loans, the eligibility criteria, interest rates, and repayment tenure differ from lender to lender. Housewives can even get financial help to set up a business, if they choose. Some lenders offer loans to housewives regardless of their credit history. However, they have to promise an asset as collateral to get the loan. The repayment tenures are different too. So, housewives can use these loans to meet their current financial requirements.
Retired individuals/pensioners: Pensioners can also get loans regardless of their age. As the only source of fixed income is their pension, they may be unable to meet certain unexpected expenses. Hence, lenders have personal loans for pensioners. These schemes are available for pensioners who were government employees. Even those who worked with reputed companies and educational institutions may be eligible. The loans offered are up to 12–18 times their monthly pension. While most lenders do not ask for collateral in these situations, pensioners can choose to take a loan against collateral if they want. The repayment tenure is between 12 and 60 months, and borrowers must not be above 75 years. While pensioners are offered personal loans, the amounts may not be as large as regular personal loans.
You can get personal loans from any lender regardless of your status. You could be a salaried individual or a housewife. You just need to look at the different eligibility criteria. But it is important to note that your repayment periods are not the same. It is always good to check these details before applying for a loan.