A personal loan is the best loan option if you're looking to get funds for your current requirements. You can apply for a personal loan facility at any bank or NBFCs. Banks offer a lot of advantages, benefits and features for this loan. However, despite these advantages, they are very strict with their eligibility criteria.
Banks lay out a set of eligibility criteria on every basic factor like age, income, employment status, etc. These eligibility factors will decide whether or not a person should move ahead with the application process. As banks can't accept the application of every individual on this planet. Because there are a bunch of risks associated with it. You'll have to meet the eligibility criteria in order to get your personal loan application approved. So to be on the safe side, banks have laid out eligibility criteria. And they will only disburse funds to those individuals that will meet this criterion. You can use some online tools that are available as a Personal Loan EMI Calculator which can help in checking whether or not you can afford EMI's. The eligibility criteria usually are different for every institution. Each factor of eligibility criteria has a different aspect.
So Let's Learn About The Variables That Can Affect Your Eligibility Criteria And How They'll Help You During The Application Process:-
Age:- Your age is a primary factor that will determine whether or not you're eligible for a personal loan facility. A lot of banks provide the facility of personal loans to individuals who are 21 and above because they're employed with decent work experience. And they are capable enough to repay the loan amount. However, there are very few banks that will provide personal loan facilities to individuals who are 18 and above. Because in India 80% of the population who fall under the age group of 18, are students. So banks usually don't offer this loan facility to students who are 18 years old.
Income:- No one wants a risky customer. And if you're giving money to someone, you would obviously consider all the factors regarding their repayment capacity. You won't simply give a huge amount of money to someone who is poor or has a low income. Likewise, banks check your income before approving the loan amount. They have to verify whether or not you can repay the loan amount. The minimum income required by the bank is INR 10,000 but this usually depends on the loan amount you've borrowed. For example:- You want to borrow INR 5,00,000 and your monthly income is INR 10,000 then the bank will simply reject your application. Because they won't consider the entire INR 10,000, as banks can only take 50% of the monthly income. You can even calculate the loan amount online using tools like SBI Personal Loan EMI Calculator.
Employment Status:- An individual to be employed in order to get their personal loan application approved. You have to be either a salaried or a self-employed individual to get your application approved. Banks need some kind of security as it is an unsecured loan, so they won't ask you to pledge any asset but you'll have to be eligible enough to repay the loan amount you've borrowed. Banks won't approve your application if you're unemployed.
Credit Score:- It is a three-digit number that will determine your creditworthiness. A lot of banks use credit scores as their primary eligibility to approve an application. A high/excellent credit score will get your application approved quickly. But if you're someone who has a low credit score then banks will either charge you with a high-interest rate or they will reject your application. So it's very important to maintain a decent credit score to be eligible for a personal loan facility. You can apply for a personal loan facility using both online and offline modes. Banks don't have a preference for any type of mode. Both modes have a quick and easy application process. You can even track your application in online mode.
The Basic Eligibility Criteria To Be Eligible Are:-
Age:- 21 to 54
Employment Status:- Both Salaried and Self-employed individuals can apply for this loan facility.
Income:- The minimum income required by the bank is INR 10,000.
Work Experience:- The individual should have a minimum work experience of 1 year in their profession.
Credit Score:- The minimum credit score accepted by the banks is 750.
