Personal loan is a convenient and hassle-free tool to arrange quick finances in the hour of need. You can use personal loans for a variety of purposes, such as tackling a medical emergency, buying costly appliances, renovating your house, meeting your wedding expenses, and funding your family vacation, among others.
However, before applying for a personal loan with a lender, you should check whether you are eligible for it or not. The eligibility criteria for personal loan varies from lender to lender and is usually dependent upon the age, annual income, city of residence, and credit score of the borrower.
In this article, we will tell you about the basic eligibility requirement for personal loan. We will also tell you how to avail personal loan online and the documents required for the same.
Eligibility criteria for personal loan
As mentioned above, eligibility criteria to get personal loan varies from lender to lender. Below are some common factors that every lending institution look at before approving personal loan applications:
Lenders usually prefer providing personal loans to borrowers who are aged between 18 to 60 years. People below or above this age bracket usually do not have a regular source of income and hence, may find it difficult to repay loans. However, some lenders provide personal loans to senior citizens as well.
Annual income of a borrower is an important parameter when it comes to his/her personal loan eligibility. Usually, the lenders ask for an annual income of at least Rs. 25,000 per month to provide personal loans. The reason behind this is that an individual should have sufficient income or funds so that he/she can repay the loan in time.
The credit score is the borrower is another crucial thing which decides his/her eligibility to avail personal loans. The credit score of a person is calculated after considering a number of factors, including his/her annual income, active loan accounts, history of loan repayments, and credit utilization ratio. Lenders usually require a credit score of 750 or above to approve personal loan applications.
The location or city in which a borrower resides also impacts his/her eligibility to avail personal loans. It’s because those who live in Tier I or metropolitan cities usually incur higher living expenses than those living in Tier II or Tier III cities. Therefore, lenders have different eligibility requirements for people belonging to different locations.
How to check your personal loan eligibility?
Checking your personal loan eligibility is simple. You can directly visit your preferred lender’s office and inquire about the eligibility criteria for personal loans. Alternatively, you can visit the lender’s website and check its personal loan eligibility requirement yourself. You can also use an online personal loan eligibility calculator to check whether you can avail personal loan from a lender or not.
How to avail a personal loan?
Availing a personal loan is easy and hassle-free. All you need to do is visit your preferred lender’s office with the required documents and apply for a personal loan. Alternatively, you can visit the lender’s website to apply for a personal loan online. For this, you need to fill up a simple online application form and upload the required documents.
Below are the documents required for availing a personal loan:
It’s important to check your eligibility before you apply for a personal loan with any lending institution. Rejection of your loan application can adversely impact your credit score. If you feel that you are not yet eligible to avail a personal loan, you should wait and take steps to improve your eligibility before applying for it.
Poonawalla Fincorp provides personal loans with easy eligibility criteria and minimum documentation. You can call us on our toll-free number 1800-266-3201 or write to us at email@example.com to know more.
How magical was the day when you discovered your career path? After a lot of research, putting in so much hard work, late nights, your heart and soul, you have become what you are today.