Personal loans are a great source of quick funds. It’s a multi-purpose financing option that you can use for a diverse spectrum of applications, expenses and purposes, such as education, medical treatment, travel, wedding, etc. Standing one of the most hassle-free and convenient instant financing options, Indian banks and NBFCs have set a robust, no nuisance personal loan eligibility parameter. Fulfilling this standard is mandatory to get fast money from the lender.
A personal loan is a kind of unsecured loan; hence, you don’t need to submit any collateral or security to obtain funds. Despite the surging demand for a personal loan, there are many people who still shy away from applying for a private financing option due to some misconceptions that bother him to confirm.
So, here, we will underline some fundamental grounds of a personal loan and its eligibility.
Eligibility benchmarks for personal financing:
Below are some key eligibility parameters for a borrower to consider before applying for a personal loan:
- Applicant’s age – According to the norms of almost every Indian bank, the applicants must be between 18 years to 65 years at the time of applying. However, it probably can differ based on internal rules and norms of different financing companies.
- CIBIL score – Finally, the most vital segment of any loan – is the credit/ CIBIL score. To apply for a personal loan, your CIBIL must be a minimum of 300 – 900 (750 is ideal); so that your application gets approved. You can take the help of a personal loan EMI calculator, which will help you evaluate your chance of getting the loan value depending on your score.
- Applicant’s income – Whether you’re a salaried employee or self-employed individual, no matter what your job type of position is, you should have a general earning value, which may vary from bank to bank.
- Work experience – While applying for a personal loan, the borrower must have a minimum work experience to show their profile to the lenders. A salaried employee should have at least six months of working experience. And a self-employed should have business operations for a minimum of two years to get this loan application sanctioned.
- Employer – In the case of a salaried applicant, the profile or reputation of their employer company can also determine their chances of getting the loan amount approved. Supposedly, the lender doesn’t have any record of your employer organisation, the lower your possibility of getting the fund.
How can I check my eligibility for personal credit?
In case you want to make sure that you successfully meet the personal loan eligibility criteria, you must oblige to the factors mentioned above. However, many of you possibly wonder about the process to check qualification parameters for the personal loan. Consider the following points to establish your credentials for a loan.
Common documents for eligibility check –
- KYC (Voter card/ Adhar card/ PAN card/ Passport, etc.)
- Residential proof (utility bills, electricity bills, telephone bills, etc.)
- Income proof ( pay slips)
- Bank statement of last 6 months
Besides, for self-employed individuals, there are two more documents they require apart from the list aforementioned list.
- Address proof and
- Business proof – evidence of successful business operations for the last two years.
How can I calculate my personal loan eligibility?
Evaluating your chance or eligibility for a personal loan is one of the most effortless tasks you have done so far. By using a simple EMI calculator, you can calculate your credentials. EMI calculator is a valuable, modern and free tool available on almost every lender’s website, which offers the most accurate and instant results. With this advanced technology, you can evaluate your primary value regarding the personal loan in just a second with a single click.
However, your employment, income ratio, employer company, CIBIL score and age are still substantial factors to consider.
The user guide of personal loan EMI calculator:
Using an EMI calculator is handy and convenient. Moreover, it doesn’t consume much time at all. To get started with this tool, you need to enter
- Loan amount (it should be determined beforehand)
- Interest rate
- Tenure (depending upon your financial condition and flexibility of repayment)
Now, click on the “calculate” option to get instant results. Remember, an EMI calculator only provides an indicative figure; the real loan value and details depend on the factors mentioned above. You can reach your partner bank or lending institution for additional assistance regarding the personal loan. The lender or loan agent will help you with the entire process effortlessly.
If you browse online, you can come across a number of banks and financial institutions offering an instant personal loan with standard personal loan eligibility criteria and less documentation. It is advisable to note down the deals and sign the agreement carefully.