When your financial position demands that you seek personal loan, it would be better to know what lenders would look for before they sanction the loan. Having a thorough knowledge of the expectations would help you to reach the lenders with necessary documents to speed up the process of loan approval. Personal loans carry high rate of interest but they come in handy when the need is urgent. Here is a quick review of the factors that lenders would review before sanctioning the loan.
The first eligibility a lender would look out for is the age of the borrower. As per the rules, you should be over 21 years of age when you apply for personal loan. Hence, you need to have proof of your age to make a sound start.
You need to produce photocopy of NRIC (National Registration Identity Card) to be considered eligible for sanctioning of loan. Front and back copies of NRIC will be required by the banks or the financial institutions you approach for personal loan.
Proof Of Income
Next to age and identity, the lender would look for income proof. To be eligible for personal loan, you need to be employed. Your personal loan amount is based on your monthly income and hence you will be expected to have verifiable source of income. You will be required to enclose your pay slip, as that would be a proof for your income. You may also produce recent Notice of Assessment, which would give a clear picture of your yearly earnings. If you are self-employed, you need to produce Notice of Assessment for the last two years. Alternately, you could enclose CPF statement for the last fifteen months.
Length Of Employment
Banks take into account the number of years you have been in service with the current employer. It would help them to analyze your stability as an employee and your income stability, which would go a long way in the sanctioning of personal loan. Stability is a reflection of your character, which would define your trustworthiness.
Personal loans are offered without any collateral and with minimum fuss. Hence, lenders would want to ensure that they are dealing with the right person who will adhere to the repayment schedule. Hence, your credit history will be looked into. When you approach a lender for personal loan, have with you all the documents that give a clear picture of your past credit history. This requirement of the lenders highlights the need to have a sound credit history. Hence, always make sure that you honor your loan commitments so that you have a convincing credit history.
Personal loans do not involve much of documentation and hence the approval process is normally quicker. Personal loans are sanctioned within 3 days and mostly, you will be having the loan amount transferred to your account within 24 hours. To ensure that you have the loan on time to meet your urgent expenses, be prepared when you approach the lender. Take some time to browse for the right lender where you will find the loan package tailor-made to suit your need.