At any stage of life, money is a crucial aspect and its need can arise at any time for various purposes; and mostly, the need comes in the form of urgency. In such instances, the handiest option to get some money is by taking a Personal Loan and meeting the respective financial requirements. Considering a conventional mindset, you would say that the best option to avail of a personal loan is by officially lending it from a bank. But it is of utmost importance to understand that banks have certain specified criteria under which they approve or reject a certain loan file; some of the criteria are the applicant's monthly income, professional stability, age, the desired amount of loan, etc. It could be possible that your loan file may not fulfil the banks' criteria and your loan application comes under the rejection category. When the doors of the banks are closed for you, there is another good way of getting a personal loan - NBFCs (Non-Banking Finance Companies). But, are they a safe and legal option? Are they registered with the government? Let's know in the next section!
Just like any other government-registered company, NBFCs are lending institutions that are officially recognized by the government. They follow all the rules and regulations stated by the government and have to function in the most professional way to ensure the consumer rights are not violated and the services are offered with transparency. So, to say it straight, NBFCs are totally legal and safe to go with. NBFCs are definitely different from banks but that does not mean that they don't have the basic criteria for loan approvals. The criteria's values may differ from the ones stated by the banks but the basic criteria remain the same.
There are certain documents of the loan seekers that are required as proof by the NBFCs. Generally, the documents required are the same as mentioned by the banks as well, still, it solely depends on the NBFCs and their specified rules and regulations. Some of the commonly asked documents by the lending company are Identity Proof, Bank Statement, Income Proof, Passport Size Photograph, Residence Proof, etc.
The reason behind asking for such documents by the lending companies is that a personal loan is an unsecured credit and requires no collateral guarantee. So, for the lending firms, the credibility of the borrower's documents is the only proof taken into consideration. Depending upon the loan application only, it is confirmed whether it meets the loan criteria or not.
When it comes to approving the loans, the financial firms have some basic criteria depending upon the employment type (Salaried Persons or Self-Employed Persons) of the loan seeker. If the personal loan seeker is a salaried person, the eligibility criteria, generally, are - Minimum Age: 21 Years; Minimum Salary: INR 15,000 per month (must reflect in bank statement); and proof of at least 1 Year Job Stability.
When it comes to the self-employed persons who want to take a personal loan, the basic criteria to be met are - Minimum Age: 21 Years; Minimum 1 Year of Income Tax Returns; and proof of at least 1 Year Business Stability.
It should be kept in mind that these are just the basic criteria and the final loan approval depends on the entire check of the loan application by the concerned financial firms according to their rules and regulations.
Being India's most trusted and #1 Personal Loan Consultant, Nowofloan is a one-stop focal centre for all your personal loan needs. With Nowofloan, you can easily get personal loan offers from multiple banks and NBFCs, as we are partnered with the leading and esteemed banks and private financial institutions.
To apply for a personal loan, all you need to do is a quick registration process with Nowofloan, check your eligibility, buy the membership card, and submit the required documents. After this, Nowofloan will submit your loan file to various banks and the bank verification process will be initiated. Once the verification is done successfully, you will be receiving the personal loan offers from multiple banks - depending upon your documents and the qualification check as stated by the bank under their eligibility criteria. And post this, you will be able to choose the best and convenient personal loan for yourself from the loan offers you have received.
The best part is that the entire process at Nowofloan is 100% digital, meaning that you can receive loan offers from multiple banks while sitting and chilling at your home. You won't have to take the conventional way of visiting multiple banks personally.
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