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How are Personal Loan Applications Processed?

By Finserv MARKETS - Mar 29,2020
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How are Personal Loan Applications Processed?

Personal loans in India grew at the rate of 28% in the third quarter of 2019 with close to 2.35 crore accounts in total. Financial institutions are today open to providing such unsecured loans to those in semi-urban and rural areas thus expanding their reach. The absence of collateral makes it easier and quicker to process applications for personal loans such as those available on Finserv MARKETS since no details or verification of assets or property is required.

However, personal loan approval is dependent on how creditworthy the borrower is. This is the main criteria around which a bank or non-banking financial institution evaluates your candidature. It is important for them to have an assurance that you can repay the loan that you have taken within the time limit and not default on the payment. Here are a few criteria that lenders use while processing your personal loan application that you need to be mindful of:

  1. History of Credit Score:

Unlike secured loans such as auto loan or home loan wherein you might have to pledge certain assets as collateral to get the loan, personal loans are unsecured and do not require any collateral. What is crucial is your credit history. This not just includes your credit score, but debt repayments, whether on time or delayed as well as spending habits to get a 360 degree view of how you handle your finances. While a credit score of 750 and above is ideal for getting a personal loan approved easily, a number below that would require you to improve your credit worthiness prior to the application.

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  1. Possession of Assets:

While a steady job that brings in regular monthly income is an important criteria for personal loan approval, what makes you even more desirable to potential lenders is the habit of saving and investing. Liquid assets such as cash, or those that can be liquidated later on in life such as fixed deposits, real estate, gold etc assure the institution of your ability for repayment. They can be confident of giving you a loan that you can repay even if you are out of a regular job, or lose it due to any reason.

  1. Income Capacity:

Your personal loan application is assessed on the basis of your employment history even though you might hold a well paying job currently. Job changes, loss of job, any periods of unemployment are all taken into consideration to decide whether or not to approve the loan requested for. These parameters are taken into account to understand the stability of income flow and its repercussions on loan repayment in the future. The amount that you are earning, the source and type of income as well its frequency are also considered. You can read more about how much you should borrow at your income level.

  1. Conditions for taking Loan:

Personal loans are offered for various reasons including purchase of car or two-wheeler, wedding of a child, medical emergency, house repair or renovation, foreign travel amongst others. However, make sure that you are clear on why you require a personal loan when questioned by a lender. Specify your needs and what you are looking to gain from taking a loan. Only if the circumstances under which you are availing a loan sound valid to a lending institution, will they be eager to approve your personal loan application.

  1. Character of the Borrower:

What if you had a secure, well-paying job for years now and never required credit? However, suddenly your wife is diagnosed with a disease and you require a personal loan to take care of her medical costs. How would a bank or non-banking financial company go about your personal loan approval in the absence of credit history? Well, in such instances your character would be the best judge of whether or not your loan is sanctioned, especially if you are applying with a bank where you hold a savings account or salary account and have maintained a good relationship over the years.

Once you fulfill all the conditions mentioned above, you can get a personal loan approved and utilize the money as per your requirements. However, if you require funds instantly, do take a look at the personal loans available on Finserv MARKETS that come with 3-minute quick approval, flexible tenures from 12 to 60 months and no hidden charges.

Not only this, but a convenient online application process also makes it hassle-free, with minimum documentation, eliminating lengthy paperwork. All you need to do is log on to Finserv MARKETS, fill a simple form online with your personal details and the amount of loan required.

Upload a few documents and upon verification, the loan amount is transferred to your account within 24 hours. You can get a customized instant personal loan of up to ₹25 lakhs at attractive interest rates to take care of all your personal needs. So give wings to you and your family’s dreams with personal loans available on Finserv MARKETS.

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Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.


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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522