As per the Reserve Bank of India, the total outstanding amount of personal loans increased from Rs.5.89 lakh crore in 2010 to Rs.19.33 lakh crore in 2018. This proves the increasing demand of such loans across the country.
Personal loans are unsecured loans and thus often come with certain pre-set conditions. You can only avail such a loan if you meet or fulfil such personal loan eligibility criteria. The eligibility of the applicant is verified from the necessary documents submitted by applicants. As a prospective borrower, your first step is to ensure that you fulfil the eligibility criteria required for the loan approval.
Parameters of Personal Loan Eligibility
Different financial institutions have different age requirements to apply for a personal loan. Most lending houses offer personal loans in the age group of 23 to 57 years.
Whether you are financially eligible for the loan or not is determined from your income. You are required to meet the minimum fixed income criteria as specified by the financial company. Your monthly income also determines the amount of fund you are eligible to avail.
Applicants with a steady job are considered financially credible by the lenders. Thus, he/she has to be employed with a public, private, or multi-national company.
Your credit score determines whether you are creditworthy to avail the credit. Previous loan records, existing debts, repayment history, etc. are taken into account while calculating your credit score. A score above 750 can help you avail a personal loan at the most attractive interest rates and other repayment-friendly benefits.
Online tools like personal loan eligibility calculator can help in assessing the amount which you are eligible to borrow. The amount may vary according to your monthly income. You can use an online loan calculator to know your monthly EMI.