Debt, when used wisely, can be a valuable tool to achieve many things in life. As a long list of responsibilities accompanies everyone as we step into adulthood, it becomes imperative to borrow from banks to fulfill some of the big responsibilities. Loans are available in many forms such as personal loans, home loans, education loans, and car loans, etc. Knowing the loan application process, documents checklist and other pre-requisites help you avail of loans quickly.
Prerequisites of a loan vary depending on the type of loan you avail of. Though the checklist of documents may slightly vary among the lenders, let’s take a look at the general documents checklist for availing various loans.
Loan Documentation Checklist and Pre-requisites for Loans
Eligibility criteria to avail of a personal loan are dependent on your disposable income. Eligibility criteria, age limit, and credit score may slightly vary from lender to lender. To get the best deal on personal loans with respect to interest rates, ensure you meet the basic eligibility criteria along with a good credit score of 750+. The following are the documents required for a personal loan in India.
Most of the Indian banks offer education loans at an attractive rate to deserving students on flexible terms. Let’s take a look at the prerequisites for availing education loans.
|Age Limit||18 years to 35 years|
|Source of income||Parents or Guardians with stable income|
|University applied for||Any recognized Universities in India or Abroad|
|Admission status||Confirmed with an admission letter from the Institute|
|Security||Loan guarantor or collateral depending on the income source and the amount of loan required.|
Documents required for education loans in India:
Documents Of Co-Applicant
Documents required for subsequent disbursement
Home loan eligibility depends on income, repayment capacity, and various other factors. Requirements may vary from lender to lender. Let’s take a look at the common prerequisites for availing home loan.
|Age limit||21 years to 65 years, may vary from lender to lender depending on whether you are salaried, self-employed and businessmen.|
|Monthly income||Should not be less than INR 25,000|
|Employment history||3 years of job continuity|
|Loan to value ratio||Banks can fund 75-95% of property value. Know LTV to understand the maximum loan you can avail|
|Property type||Approved by banks|
Home loan documents required would also differ depending on the purpose of the loan, loan scheme, and the credit profile of the borrower, etc. The following are the common documents required for home loans in India along with the duly signed and filled loan application.
Vehicle loan eligibility requirements may vary from lender to lender. Know the basic eligibility requirements such as age limit, income limit, and vehicle model, etc. The following are the documents required for applying for vehicle loans in India along with the duly signed and filled loan application.
Knowing the prerequisites to apply for loans and keeping the relevant documents ready helps in getting the loan processed smoothly and quickly. The important thing to avoid while applying for loans is making any mistake in the application form and submitting all the documents right on the first go. Keep the documents ready before you apply for a loan for a smooth process.