You never know when financial emergencies and sudden expenditures can arise. Under such circumstances, time is of the essence when it comes to arranging funds. When the amount is substantial, you may not have enough provisions and savings. In such situations, taking a personal loan from financial institutions is one of the best ways to get a large corpus. While personal loans of smaller sums are easily granted, a loan of Rs 50 lakh and above is a different ball game. If you want to acquire a Personal Loan of Rs 50 Lakh instantly, there are several criteria you need to meet. Banks are extremely particular in scrutinising documents and records of the applicant, which is what we will address below.
Personal Loan Eligibility Criteria
If you wish to apply for a Personal Loan of Rs 50 lakh, you have to pass all the eligibility criteria of the bank from which you will be taking the loan. Different banks may have varying criteria to prove eligibility.
You can easily apply for a Personal Loan if you meet the following eligibility criteria.
- Nationality: The applicant should be an Indian national.
- Age: The applicant should be between the ages of 21 and 65.
- Employment status: Individuals employed at a private sector company, public sector organisation, or MNCs are eligible to apply.
- Credit score: The applicant’s CIBIL score should ideally be 700 or above.
- Minimum earnings: The applicant’s minimum salary should be Rs 30,000 PM. This figure can differ depending on various factors.
Once these criteria are met, applicants you need to submit the necessary documents to start the application process.
How long can it take for the application to be approved?
The process of loan disbursal is generally quick and primarily executed digitally. When you decide to apply for a Rs 50 lakh Personal Loan, make sure that you have all the documents needed. Ensure to arrange them in the order mentioned and save an extra copy to be on the safer side. While filling out the online application, the financial institution may require you to upload these documents on their portals.
Once you have applied, the bank representatives will go through the form and reach out to you. They will set an appointment on a convenient date to gather the physical copies of the documents you have submitted online based. Once all the required processes are completed, and your application is successful, the loan amount is disbursed in your account.
Some banks offer pre-approved loans to their select clients, in this case, the loan is immediately disbursed in the account once an application is submitted. No documentation is needed in this scenario.
How Do You Apply for a Rs 50 Lakh Personal Loan?
The application process for Personal Loans is simplified today, thanks to online banking. Here’s what you need to do.
- Choose a financial institution: Research your options, interest rates, and payment terms to zero down on a bank to provide you with a loan. If you’re unsure, speak with the bank’s representatives before finalising a bank. Check the EMI amounts using the bank’s personal loan EMI calculator for an estimate of your repayments.
- Find their online portal: Find the bank’s online portal or app. Ensure the URL is HTTPS and SSL protected to avoid landing on scam replica pages.
- Find their loans tab: Go to their loan section to begin your application process.
- Application: Go to the online form and fill it in with complete and accurate details. Verify the documents uploaded.
- Submit: Once you have checked the application thoroughly, submit the form and wait for the bank representatives to contact you.
List of Documents required to apply
Mentioned below are the documents required to apply for a Personal Loan:
- KYC documents: This includes your Aadhaar card, PAN card, Passport, or Voter’s ID for the KYC process.
- Employment proof: A letter of appointment, joining letter, or identification card.
- Proof of earnings: Add a salary slip dating back to the last 3-6 months
- Bank account statements for the last 3 months.
Best Practices to get your loan approved
Getting a loan is easy if you have the credentials and documents ready. However, Rs 50 lakh is not a small amount, which is why banks place applicants under high scrutiny before approving such loans. When choosing the perfect candidate, they look for characteristics that reflect credibility, reliability, and the ability to pay the loan back.
Creating financial credibility requires time, consistency, and discipline. However, when you check all the boxes, your ability to pay back substantial loans becomes undisputed, which opens multiple doorways to big loans, like one for Rs 50 lakh.
What do banks look for in the ideal applicant?
- Maintain an impeccable credit score: Maintain an impeccable credit score: There are several benefits to having a high credit score. For one, it helps individuals to access Personal Loans, Home Loans, and other borrowings. All you need to do is pay your credit card bills on time, avoid delayed bill payments, and not miss any EMI repayments. Maintaining a low Debt-to-Income (DTI) ratio also boosts your credit score.
- Avoid frequent job hopping: Switching jobs can be a personal decision, but it can impact your financial credibility in the eyes of financial institutions. Try staying in an organisation for more than two years to ensure that banks are sure of your reliability for a stable income.
- Make sure your personal documents are up-to-date: There can be discrepancies in personal documents about name spellings, formats or dates. Ensure that these are all correct to ensure there is no or very little scope for application rejection. Also, ensure that you have the latest information on the documents to provide the lender with accurate details.
Now that you know what it takes to get a Rs 50 lakh personal loan, do you have all the criteria in check? Make sure you have read this article carefully to ensure you have all the information regarding your loan application for it to be successful.