Loans

What Are The Eligibility Criteria To Apply For The Small Loan?

Most financial institutions avail the small amount loans in modern times. The reason behind this is that these are loans that have a great array of benefits. As a result of that, these loans have become popular among the general populace. People usually opt for the small loan rather than the other forms of credits. You will be able to avail the good benefits like the enhancement of your credit score, the low rates of interest as well as the easy availability of the loans. Due to this rise in preference of people for small amount personal loans the financial institutions avail personal loans in the modern times.

For availing the small loan, you will not have to stress out a lot. There is hardly any documentation process for getting the approval of a small amount of personal loan. There, however, is the process of eligibility. Not every person will be able to avail the small amount personal loans from all institutions. The eligibility criteria of different financial institutions are different. The basic ones, however, are listed and explained below.

Documents Required

Here are the various documents that are required by most financial institutions for the approval of a small loan. They are not much and are readily available by most people. The documents are as follows:

  • The Application form from the financial institution
  • Your age proof
  • Photograph (usually passport sized)
  • ID proof of the institution’s preference
  • Signature verification proof for the future reference
  • Prior bank statement for verification
  • Proof of income as it will have the incoming amount
  • Residential proof for security

These are the various documents that are required by most of the financial institutions, and they are not a lot. All these documents are easily available and are for security purposes. The institution requires three other documents after the approval of the loan, and they are as follows

  • The Loan Agreement duly signed
  • Standing Instruction (SI) Request or the ECS Form
  • Security cheques required for SI and ECS

Apart from these various documents, no other documents are asked for in the process of availing a small loan. Visit this website to know more about small loans in India.

Eligibility Criteria

Here are the various aspects of the eligibility criteria that you need to qualify to avail the small amount personal loan. They are not rigorous, and each one of them has a basic logic behind being there as eligibility criteria. Here are the major ones:

  1. You have to be a salaried employee – This is because the institution has the security of you reimbursing back the loan on time and without hassle.
  2. Minimum age should be 21 years – The minimum age is 21 because there is a level of maturity of the people at the age of 21. This is for the betterment of the loan applier.
  3. Maximum age at the maturity of the loan should not exceed 60 – The maximum age should be not more than 60 at the time of the maturity of the loan. This is also security for the financial institution.
  4. Minimum income on a monthly basis should be INR 15000 – The minimum income should be of INR 15000 as this is a basic amount with which a person can run life as well as be able to return the amount to the financial institution.

These are the basic eligibility aspects of availing the small loan. They are pretty basic and come with many beneficial advantages. The eligibility of these loans are easy, and hence they are opted by most people these days.

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