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Important Things to Know Before Applying for a Personal Loan

Important Things to Know Before Applying for a Personal Loan

If you are considering applying for your first personal loan, then know that there are some things to know before doing so. Personal loans are an essential financial tool. They allow you to instantly access money when you need it, without having to rely much on your credit history or being tied to a contract. If you're considering applying for a personal loan, know that there are things to know before applying for a personal loan. Keep in mind that you have been eligible and qualify for your loan to be approved.

Many people are stuck in the mindset that as soon as they want to borrow money, they should immediately apply for a personal loan without knowing what is needed to apply. That's not always the case. You must consider every other small detail needed for you to apply for the loan. This will help your chances of getting approved and save you a lot of time and money in the long run.

What are Personal Loans?

Personal loans are unsecured loans and therefore don't require collateral. This makes them easy loans to get approved for. It's not a must that you have a good credit history or credit score, which also makes getting the loans even easier – especially for borrowers with bad or no credit history.

But, remember that there are lenders who would still want to know your credit history and CIBIL score. That being said, here are some important things to remember before applying for a personal loan:

You Should be Eligible to Apply for a Personal Loan

Before applying for personal loans, the main thing to consider is that you must be eligible for a personal loan. If you aren't eligible for the loan, then it would not make sense to apply for it. There are certain criteria to meet to be eligible for a personal loan.

Be an Indian Citizen: You must be an individual with Indian nationality. Before applying for a personal loan at lendingplate, ensure you are an Indian by citizenship. If you aren't, then you can't apply for personal loan.

Be 21 years old or above: One thing that lenders consider before approving your personal loan application is your age. You must also be at least 21 years old. This is a mandatory criterion to meet before applying for a personal loan. A 21-year-old individual is already an adult who is responsible for his or her finances. If you are under the age of 21, you can't apply for personal loan.

You should be earning a salary of ₹20,000 each month: One of the main eligibility criteria to apply for a personal loan is that you should receive a salary and have an income of ₹20,000 per month. This is the minimum amount you need to earn each month to be eligible for a personal loan.

Have an active bank account with the salary credited to it: You should have an active bank account with the salary credited. The salary you receive should be credited to this bank account only. If your salary is credited to another account and you don't have an active bank account, you may fail to qualify for the loan.

You Should Have a CIBIL Score of 750 or Above

Although most lenders will not look at your credit score, it is ideal if you have a CIBIL credit score of 750 or higher. This would make it easier for you to get approved for a personal loan.

A CIBIL credit score is the most well-known one among many people. It stands for Credit Information Bureau of India Limited, an official credit bureau. If you have a CIBIL score of 750, it's termed a "good score." This score will make you qualify for a personal loan right away.

You Should Be Employed

Most lenders want you to have a job for at least three months before applying for the loan. They would also require certification from the employer that confirms that you are in fact employed and working with the company.

They want to see that you have an occupation or business from where you earn your income. Even though having an income of ₹20,000 per month is enough to qualify for a personal loan, you should also be working. This is because the income criteria may not be met if you are unemployed. The job should also be stable, and not a part-time job is done just for an additional income.

You may also read this: Unemployed loan option in India

Be Financially Stable

Having an income is also the main thing to consider before applying for personal loans. You should also be stable enough in your finances to be able to repay the loan on time. If you aren't financially stable, lenders can't risk giving you alone when they know it won't be easy to repay them. If you are in a situation where you are struggling to be able to repay your loan, it would be better to use another option and apply for a personal loan that suits you.

You Should Have the Needed Documents

Before applying for a personal loan with lendingplate, you should check if you have the needed documents. You won't be able to apply if you don't submit all the required documents. lendingplate would request you to submit your documents, and the ones that are needed are:

Documents showing proof of your identity: Here, an Aadhar is used. It is a proof of identity and residence issued by the Government of India. So, you must provide an Aadhar to show your real identity. It is also proof of residence.

Documents proving that you earn an income of ₹20,000 or above every month - Here, you have to provide the bank account statement, salary slip, employer's ID, and a salary slip.

Documents proving your address: These documents include bank statements, voter cards, Aadhar cards, rent agreements, etc. Anything showing you have an address in India can be used to complete this requirement. You must reside in India permanently to get the personal loans approved. If you're moving out of the country or planning to do so sometime soon, you shouldn't apply for Indian personal loans unless you plan on resuming your banking from here.

If you don't have all of these documents at hand, don't apply for the loan because you won't be approved.

Once you meet these criteria, then it is time to apply for your loan. Fill up the application form on lendingplate and submit it online. Even if you do not meet all of the criteria, you can still fill out the application form. You can always come back again to get another chance to be approved for a personal loan.

It's Easier to Get a Personal Loan

Many people have trouble with their finances sometimes, and a personal loan can be the solution they need to get back on track. Since you now know the things to know before applying for a personal loan, you can now tell if you will be approved or not.

There are many reasons we need money. Borrowing money is not necessarily bad, but when you borrow more than you can realistically repay, it can cause problems down the line. Despite what the advertising slogan says, your credit score does not guarantee you will get approved for a loan. If you haven't been able to pay off other loans in the past, it's unlikely that this one will be any different.

There are many other options for getting the cash you need. For example, if you are looking at buying a new car, why not try to negotiate with the seller on the price? The worst that can happen is that they will say no. There's no reason to run up your credit just because of a few hundred rupees.

Another thing to know before applying for a personal loan is what exactly your loan will be used for. If you plan on taking the loan out to fix the roof, you might want to think twice about it. Most lenders will only give you a certain amount of money for home improvement purposes, so this could be going above and beyond what they would approve.

One of the main problems people face when they borrow money is that they don't understand what is considered before applying. Having a good understanding of the process means you are more likely to have an easier time getting approved.

Your credit score is not the only factor determining whether you get approved for a loan. The lender looks at many different things to determine your approval chances. You must be employed and receive a salary.

Process to Apply for a Personal Loan from lendingplate

To apply for a personal loan from lendingplate, you must fill out the application form on lendingplate. You will have to sign up with your mobile number after verification of mobile number you’ll need to fill all the required details to apply for a personal loan. After reviewing your loan request, you will get a call from lendingplate’s credit officer then they will process the request. The loan amount will be deposited into your account within 24 hours of approval.

Is a Personal Loan for Anyone?

If you are in need of a loan for emergencies or sponsoring your education, then some options will help you out. These options include getting a personal loan. With a personal loan, you can borrow money for any purpose. You might want to get rid of high-interest credit card debt, finance a business venture, pay for a vacation, or buy a car. It's really up to you and depends on your personal situation.

Whether it is a home improvement project or unexpected expenses, we all need money sometimes. And when that happens, a personal loan can be a great resource to help you out. The best part about borrowing money is that no collateral is needed.

If you aren't sure about applying for a personal loan, know that you must first qualify before being approved. There are some things you should know before proceeding.

A personal loan is a type of loan without providing security, and you can use the money whoever you want. The best part is that you get to decide what the money is spent on and pay it back monthly for a given period. You can still apply for the loan if you don't have a credit history.

It's good to note that there are some specific things you need to qualify for to get approved for the loan. For example, the lender will need proof of employment and a fixed income. Also, you must be a permanent resident of India. If you are 21 or older with a valid Indian passport, you should be eligible for the loan. What is important to remember is that loans can come with fees and interest rates that aren't that high.

You don't want to apply for a personal loan if you have other outstanding debts. You want to focus on getting that paid off first. But if you can make the loan payments on time, it will increase your credit score.

Some lenders can offer you loans, whether you have a bad credit history or a good credit score. It all depends on you and how much risk the bank feels like taking with your application.


This article was about things to know before applying for a personal loan. As mentioned, you must be employed, earn a salary of ₹20,000 every month, and be an Indian citizen aged 21 years or older to get the loan. Of course, you have to provide documents showing proof of your identity, address, and employment.

There are no permanent solutions in life, but borrowing money with a bit of realism can help you make the right decisions. Always make sure you plan for what to use the money for. Don't just borrow the money for fun.

Many people have credit cards, loans, and mortgages to pay their bills and expenses. And this is what led to the explosion of personal loans in the last decade. Many people have been using personal loan services to improve their financial situations or for other needs. If you are one of those looking for a personal loan, use this guide to know what you need beforehand and apply for the loan.

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