What is a Personal Loan?

A personal loan is better when it's used for covering unexpected expenses, but people claim it for various purposes as the needs vary from person to person. Sometimes they have high-interest rates, and if you take it out as a guaranteed personal loan, you can risk your collateral. It is a crucial requirement for any borrower to know at least basic details before applying for it. When you have a better understanding of personal loans, you might extract the best deals out of them. Several banks provide their clients with attractive personal loan schemes, so it's always better to first compare all the possible schemes to get the most reasonable loan with a lower rate of interest on the borrowed money. Before opting for any type of personal loan, people must have different questions about whether they are taking the right step or not. A personal loan could be used for so many purposes. For example, you might be unable to obtain a personal loan to cover college fees, tuition fees, or other costs. A personal loan is not the same as a personal line of credit. The above is not a one-time payment, though it functions similarly to a credit card. You have an overdraft that you can use to make purchases, so when you do so, the usable credit decreases. Any lender will inquire as to what you want to do with the funds, while others may simply want to ensure that you can repay it (creditworthiness). Though personal loans are not cheap, they can be a manageable alternative in several situations. Before applying for a loan an individual must be aware of the personal loan eligibility criteria that can vary from bank to bank. This may include your age, your income, profession and credit score, etc.

For a better understanding of personal loans, eligibility let's talk about the Standard Chartered  Bank personal loan. It provides various types of personal loans, each with a different interest rate. An applicant may also meet the credit requirements of a bank to obtain a loan. A borrower's age, income, and credit score, among other things, are taken into account. 

Following are the eligibility  criteria of Standard chartered personal loan:

Age: For the acceptance of a personal loan, an age requirement exists. A personal loan can be obtained at any age between 23 and 58 years old. Personal loans are available from Standard Chartered Bank on terms of up to 60 months.

Income: Your monthly net income must be 25,000 to be eligible for a personal loan. The amount of money you make determines your qualifications (Net take-home salary). Your ability to pay EMIs is determined by your income as well as the amount of money you have borrowed. Your living standards are unaffected by EMIs.

Co-applicant: Having a co-applicant raises the chances of getting a personal loan and it improves your repayment potential. Be sure to have a co-borrower with a steady salary, few fixed liabilities, and a decent credit score.

Profession: Any salaried person working in private, government, or multinational companies can apply to avail of the personal loan. Also, some other factors might get considered while opting for a loan and those can be CIBIL score, a high number of unsecured loans, usage of credit limit, and multiple loan applications, etc.

 
Things one should keep in mind while applying for a personal loan. Review your credit history because a decent credit score will help you to get a personal loan conveniently and at a lower rate of interest. While submitting your documents, ensure your eligibility requirements. However, Standard Chartered's decision to award you a personal loan is unaffected by the circumstances in which you need one. As a result, with attractive interest rates, adjustable repayment terms, and other perks, you can find that the personal loans offered by them are a perfect choice when you require funds.

Also Read:- Steps to be followed for a safe Personal Loan