In today’s time, the facility of personal loan is one of the most sought-after to help you manage and cover your multiple financial needs in life. Personal loans can help you borrow up to Rs.25 lakh to help you during cash crunch.
You can use personal loans for multiple purposes such as debt consolidation, home renovation, medical emergencies, marriage expenses, vacations and beyond.
Many people in India apply for personal loans, and many of them have to face rejection. It is majorly because they don’t check the personal loan eligibility parameters that a lender checks before approval at the time of loan application.
Hence, to ensure that you have the loan approval, you need to consider some factors that may prove the personal loan eligibility. Read on!
Standard personal loan eligibility conditions at a glance
Majority of banks and non-banking finance companies (NBFCs) have the following standard personal loan eligibility terms. Produce a look.
- A personal loan applicant needs to between 23-58 years
- You should be a resident of India
- You need to be a working professional employed at an MNC, private or public limited company in India
You will also need to furnish some documents to fulfill your loan eligibility such as:
- KYC documents
- Employee ID Card
- Last 2 month’s Salary Slips
- Previous 3 months’ bank account statements of your salaried bank account
Personal loan eligibility conditions that lenders check
Before the approval of the personal loan, a lender also looks at some other vital eligibility terms such as:
Your CIBIL Score
Since the Credit Score is considered as the mirror of your past repayment history, and other aspects of the creditworthiness, lenders check it as well. Anyone with a CIBIL Score of 700-750 or more out of 900 is considered excellent. Such applicants get loan approval easily. You can enhance your CIBIL Score by paying your existing loan debt and credit card outstanding on time.
- Your age
Your age is another vital personal loan eligibility term that your lender will check. All young professionals with more working years will get loan approval. Middle-aged people may also get loan approval but at a higher rate. It is as they have less working years left.
- Your employment history
Do you change your jobs for getting some hikes and willing to grab a loan approval? Forget it! It is because lenders don’t consider people with an inconsistent employment record safe for the loan. It is as their loan repayment is not guaranteed. You can also check the personal loan eligibility calculator at a lender’s website to know your loan eligibility free.
- Your loan amount vs the repayment capacity
Also, applying for personal loans for an amount more than the repayment capacity to pay the loan EMIs is also checked by lenders. Hence, ensure to apply only for an amount that your income can support to pay the loan EMIs easily. You can also use the personal loan EMI calculator at a lender’s website. This way, you can come to know an EMI amount that your current income can support. Based on the EMI amount, you can increase or reduce the loan amount to get the loan approval.
Some of the personal loans’ eligibility factors that a lender considers before approving the loan are now discussed. It would surely help you in assessing your condition before applying for it to get hassle-free loan approval.
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