In today’s fast-paced world, Personal Loans have become a versatile financial tool for individuals aiming to achieve various goals, from consolidating debt to funding major expenses. These have no usage limitations. Many borrowers prefer Personal Loans when facing financial shortages as they offer flexibility, convenience, and access to resources.
You must understand the eligibility criteria. It can vary from person to person, but some common factors that affect it include the applicant’s age, work experience, income, employment category, citizenship, and credit score. Let us discuss them:
Applicant age
Before you apply for a Personal Loan, you need to make sure your age should be 21 at the time of application. By the time the Loan matures, you should be at least 58. The younger you are, the better your probability of getting approval for higher amounts, as you have stable income and employment.
Work experience
The candidate should have at least one year of work experience and at least two months of consistency with the current employer or organisation for swift approval and Loan disbursement. If you have a stable employment history with a reputed organisation, you stand a chance to gain the trust of most banks.
Income
To be eligible for a Personal Loan, you should have a net monthly income of at least Rs. 30,000. A higher income translates to better repayment abilities and timely debits from your Bank Account. You can set auto-debit payments or reminders to pay the loan EMIs to the bank on a specific date.
Employment category
To get approval for a high Loan amount and the best interest rates, the applicant should work as a full-time employee for a business, LLP, private or public limited corporation or any similar entity. If you have a stable and positive employment history with a reputed firm, it boosts your Personal Loan eligibility and shows your ability to repay the EMIs on time.
Citizenship and credit score
Only Indian citizens are eligible for Personal Loans. You need to have a positive credit history and a CIBIL score of 750 or above to be authorised for a Personal Loan. To boost your credit score, it is imperative to avoid late payments, maintain a low credit utilisation ratio, and make your Loan repayments on schedule.
What documents are required?
To apply for a Personal Loan in India, you need to submit a set of documents to the bank as proof, including identity, address, income, and employment proof. These include your PAN Card, Aadhar Card, electricity bill, Indian passport, last three months’ salary slips and Bank Account statements, and a copy of your offer letter and employment contract.
Go online, click Apply Now, choose your job profile, select the Loan purpose, and enter your email ID, location, and other relevant data. Upload the necessary documents, enter your PAN Card number, and wait for the bank to verify and approve your Loan request.