Personal loans are unquestionably one of the most popular financial products available to customers today. Their adaptability and unsecured nature make them ideal for a wide range of needs, including automobile purchases, international travel financing, small business startup, and personal reasons. Personal loan and credit card debts totaled a huge Rs. 570,00 crore at the end of FY 2018, according to the Reserve Bank of India.
The best aspect is that you can acquire a personal loan with low interest rates and up to 60 months to repay it. It gets even better when you understand that anyone who has a consistent monthly income can qualify for a personal loan. There are a few qualifying conditions that must be met in order to obtain a personal loan. Let's have a look at what we've got.
Eligibility Criteria for a Personal Loan
In general, banks and financial institutions have their own set of rules and parameters for approving a personal loan application. There's a good chance that no two banks or lenders will have the identical set of requirements. As a result, before applying for a personal loan, it is strongly advised that you look into numerous banks and explore your possibilities.
Keeping this in mind, the eligibility criteria can be divided into the following categories:
Age of the Applicant: The applicant's age is usually fixed between 21 and 60 years old by several lenders. Then there are lenders who will consider whether the application is self-employed or salaried when determining the age bracket.
Experience in the Workplace for Salaried Professionals: Must have worked professionally for at least 1-2 years, with a minimum of 6 months to 1 year with present employer.
Salary Requirements: The minimal monthly net income for salaried workers varies by bank. The cut-off point for most private-sector banks is Rs. 15,000, though this figure may be higher in other cases. Public banks, on the other hand, may have a lower salary ceiling for applicants.Banks consider considerations such as minimum turnover, minimum profit after taxes, and business stability when lending to self-employed people.
Residence Address: In comparison to other cities such as Bangalore, Pune, Chennai, and so on, the minimum wage requirement for big cities like Mumbai and Delhi may be higher.
Employees of commercial and public sector enterprises, as well as self-employed professionals such as doctors, architects, businessmen, Chartered Accountants, and others, can apply for a personal loan.
Many finance institutions will look at the applicant's credit history and credit score in addition to the aforementioned variables. While having a credit history is not required – you can receive a personal loan with no credit history – having one will significantly increase your chances of securing the loan.
As a general rule, the higher your credit score, the better your loan rates will be. It demonstrates to the lender that you understand credit and can manage it appropriately. As a result, you should aim to keep a high credit score at all times.
How to Check the Eligibility for a Personal Loan?
Almost all major banks in India have an eligibility calculator on their websites, thanks to the burgeoning personal loan business. All you have to do is provide your personal information, such as your name, address, and date of birth, as well as your employment information, such as work experience, take-home pay, turnover, and profits if you're self-employed, and other pertinent information.
The bank/financial institution will contact you after receiving these facts to see whether you are eligible for a personal loan. Keep in mind that the amount of your loan and the interest rate will be determined by the information you submit here; be sure it's accurate because the bank may request more verification.
Personal loans are a great way to satisfy your short-term financial needs, but they also come with some additional responsibilities. To avoid penalties, you must have a good repayment plan in place and pay the monthly instalment well before the due date. Also, watch for hidden fees and penalties, as well as prepayment alternatives, to avoid any unpleasant surprises down the road. Before asking for a personal loan, be a responsible financial client who conducts comprehensive research.
Conclusion
At any point in the loan lifecycle, we can operate in both established and new markets. We can handle both basic and complex large syndicate deals. You can call our helpline number +91-9477079053 to learn about the greatest prices and offers. They will assist you in every way they can. If you have any further questions, please contact me at Best Personal Loan in India.