What is the eligibility criteria for a personal loan. It is essential to check whether or not you are eligible for a personal loan before moving ahead to the applying stage. Your loan eligibility depends on a lot of factors like age, employment status, monthly/annual income or employer reputation. There are several banks (like Syndicate Bank personal loan or ICICI Bank) that provide a 'personal loan eligibility calculator' on their website. So you can use those tools to check whether or not you're eligible to apply for a personal loan at that bank. This tool makes it easier for you to choose your perfect bank while comparing them online.
Factors that affect the personal loan eligibility. The eligibility criteria for each bank is different. So the variables that impact the eligibility criteria differ from one bank to another.
It's essential to check all those factors before moving ahead with the applying stage-
Age- Age is a primary factor that determines whether or not you are eligible for a personal loan. Many banks give personal loans to individuals who are 18 above, whereas many banks only provide personal loans to applicants that are 21 above. Hence, the age factor usually differs from one bank to another. It's essential to check the bank's age criteria and then compare it with your age to ensure that your application will be processed.
Income- Banks don't want a risky customer. It's crucial to check your income before applying for a personal loan. Your monthly income determines whether or not you are credible enough to repay the loan amount that you have borrowed from the bank. The minimum income required by a lot of banks is INR 10,000.
Employment status- Banks only accept the loan application for those individuals who are employed. You have to be either a salaried or a self-employed individual to be accepted for a personal loan. Your employment status determines whether or not your application will be approved by the bank. Banks don't approve the personal loan application of those individuals who are unemployed.
Work experience- Having decent work experience is very important to get your loan application approved. Banks usually accept the application of those individuals who have a minimum of 2 years of work experience. So any fresher or any individual won't get their personal loan approved until and unless they have a minimum of two years of work experience at a reputable company.
Credit Score- Credit Score is a three-digit number that varies between 300 to 900. It determines your creditworthiness. So the higher your credit score, the more creditworthy you are. It's crucial to maintain a decent credit score to be eligible for a personal loan. Banks don't ask you to pledge any assets to get funds from a personal loan. Instead, they will ask you to show your credit history and credit score to check whether or not you will repay the loan amount on time.
Personal loan eligibility criteria
To sum up the above points, we've listed some essential eligibility criteria requirements in a simpler way.
These requirements are the general necessity to apply for a personal loan:-
Mode- You can apply for a personal loan using both the personal loan apply online feature and the offline feature.
Age- You have to be a minimum of 21 years old and a maximum 68-year-old to be eligible for a personal loan. Employment status:- You can either be a salaried or a self-employed individual to apply for a personal loan.
Income- You should have a monthly income of at least INR 10000.
Work experience- A minimum of 1-year work experience in your profession is required to be eligible for a personal loan. Credit Score:- The standard credit score accepted by the banks is 750 or more.
Conclusion
There are a lot of banks and NBFCs that provide personal loan facilities to individuals. So it's better to compare all the options available according to their loan eligibility before deciding the best one for you.