A personal Loan is a convenient and hassle-free tool to arrange quick finances in the hour of need. You can use Personal Loan 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.
While consumers' increased attention to their financial well-being has made it easier for borrowers to be authorized, there are still some conditions that must be completed as part of the Personal Loan eligibility criteria before applying for a Personal Loan. Before applying for a Personal Loan with a lender, you should check whether you are eligible for it or not. The eligibility criteria for a Personal Loan vary from lender to lender and are usually dependent upon the age, annual income, city of residence, credit history, and credit score of the borrower.
This article will tell you about the basic eligibility requirements for a minimum Personal Loan amount. We will also tell you how to avail of a Personal Loan online and the documents required for the same.
As mentioned above, the eligibility criteria to get a Personal Loan varies from lender to lender. Below are some common factors that every lending institution looks at before approving Personal Loan applications:
The age of the borrower is crucial in assessing Personal Loan eligibility since it demonstrates the borrower's potential to earn and repay the loan amount within the stipulated period. Lenders usually prefer to provide Personal Loans to borrowers who are aged between 22 and 58 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, with some riders or pre-conditions
The annual income of a borrower is an important parameter when it comes to his/her Personal Loan eligibility. Personal Loan eligibility is largely determined by a borrower's income. The higher your salary, the more likely you are to get approved for a Personal Loan. Usually, the lenders ask for a monthly income of at least ?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 minimum Personal Loan amount on time.
The credit score of the borrower is another crucial thing that decides his/her eligibility to avail of Personal Loans. The higher the credit score, the more likely the loan will be accepted. The credit score of a person is calculated after considering several 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.
More debts/credits in the past have hurt the credit worthiness of the borrower. As a result, credit history plays a significant role in the loan approval procedure.
The location or city in which a borrower resides also impacts his/her eligibility to avail of 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.
The organization/individual with whom the borrower is employed is also a significant element in assessing your Personal Loan eligibility. For example, if you work for a reputable and well-established company, your chances of getting authorized for a Personal Loan are far higher than if you work for a startup.
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 the 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.
Availing of 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 of 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 of a minimum Personal Loan amount, 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.
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