personal loan approval

Factors Other Than Salary that Determine Personal Loan Approval

October 25, 2022 • 5493 views

The popularity of Personal Loans has increased a lot in recent times due to unique features associated with the product. Modern-day lenders are offering Personal Loans with unique and latest features to borrowers across the country. Factors such as a change in lifestyle and keeping up with the trends have given a boost to Personal Loans and complementing this is the rise of digitization which has bought in unique and new features as offerings by lenders. 

As a borrower, you can apply for a Personal Loan for various reasons, such as home renovation, weddings, travel, emergency medical expenses, etc. When you apply for a Personal Loan, many factors determine your Personal Loan approval. Amongst these, salary is one of the major factors that directly impact your Personal Loan approval as it is reflective of your capacity to repay the loan amount. Also, you can plan your EMIs according to your salary along with other finances.

4 Factors Other Than Salary that Determine Personal Loan Approval

Credit Score

Bureau score or credit score are the popular terms frequently used by lenders. Your credit score will indicate your ability to repay the loan. A good score will increase yo?ur chances of getting the desired loan amount compared to a poor credit score. Before your loan application, you must ensure that you have a good credit score for loan eligibility. Also, it is a good practice to check credit scores twice a year. If you check your credit score or your employer does, it is termed as a soft inquiry, and it does not affect your credit score. However, if multiple (prospective) lenders check your credit score, it is considered a hard inquiry and it adversely affects your credit score.

Work Experience

With your work experience information, lenders can easily do the background verification of the borrower. Your longer work experience means you have a stable income giving confidence to the lenders. On the other hand, a shorter or unstable work experience will impact your loan amount and hamper your Personal Loan approval.

Age

There are certain age criteria that you need to fulfil as a borrower. Most lenders have minimum age criteria between 22 and 58 years of age. Generally, a person in this age bracket is of “working age” and hence is preferred by lenders.

Tenure

Borrowers can either opt for a short-term loan or a long-term loan. Both scenarios have different consequences and impacts on the loan. Generally, a short-term loan has a lower interest rate while a long-term loan has a higher interest rate.

Also Read: What are the best reasons to apply for personal loan?

What are the Documents Required for a Personal Loan?

Now that you have understood the major factors that will directly impact your Personal Loan approval, the next step is to submit all the required documents for your Personal Loan. Below is the list you must be aware of while you apply for a Personal Loan. This is an indicative list and document requirements may vary from borrower to borrower:

  1. Pan Card
  2. Salary Slip
  3. Bank Statement
  4. Passport
  5. Electricity Bill
  6. Aadhaar Card

How to apply for a Personal Loan with Poonawalla Fincorp?

You can apply for a Personal Loan with Poonawalla Fincorp by following the below steps:

Step 1: Visit the official website of Poonawalla Fincorp

Step 2: Click on the other Personal Loan section

Step 3: Click on ‘Apply Now’ under the Personal Loan section

Step 4: Upload the required documents and fill out the form

Step 5: After verification of the details, your loan will be approved

Conclusion

Today, Personal Loan is easily available as several lenders are offering instant Personal Loan approval. There are high chances of misunderstanding and misusing the easy availability which can lead to heavy debt. As a responsible person, you should apply for a Personal Loan only when required. Also, before applying for a Personal Loan, you must fulfil all the requirements and procedures beforehand to avoid any hassles.

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Personal Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply

poonawalla fincorp team

Poonawalla Fincorp Team

Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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