Check the Personal Loan Eligibility Criteria

In loan segment, there are multiple types of loans. Each loan is available to help the borrower finance a certain requirement. Car Loan is there to fulfill the car requirement of the individual, home loan to buy a house and education loan for the studies. But apart from these mentioned requirements, there are multiple needs for which a person may require to borrow funds. To facilitate other necessities personal loan product is made available. This credit product can be used for any reason. Whether it is the wedding of your beloved daughter or you want to go on a trip this product will cater your financial requirement. Personal Loan comes with no pre-determined purpose and hence the amount sanctioned can be utilized in the manner suitable to the borrower.

It is an unsecured loan that can be taken in times of need. Since no collateral is required, the loan is disbursed shortly and no rhetoric procedure is followed. Only what matters is that the applicant must adhere to the personal loan eligibility norms formulated by the lender. It is on the basis of eligibility that the loan application is approved or rejected. The bank calculates the borrower’s eligibility on the basis of following factors:

Factors Affecting Personal Loan Eligibility

Monthly Income – The most important criterion that helps in setting the disbursal amount is the income of the candidate. The person earning a handsome salary or high revenues is likely to get higher loan amount.

Age –  When it comes to applying for a loan, the age of the applicant also matters. The age limit varies from lender to lender but in general, ranges from  21- 60 years.

Monthly Expenses – As the lenders assume that the borrower will be repaying the loan from the monthly income excluding expenses, so the applicant’s savings become a concern while calculating the eligibility.

Any Other Loan – The lenders count the applicant’s obligation to repay any other loan while deciding the disbursal amount. If the applicant has the capacity to repay both the loan simultaneously the new loan is sanctioned.   

Credit History – The healthy credit history of the applicant builds up the CIBIL score which makes it convenient for the applicant to avail a loan.

Job Stability – The applicant should have a stable job and have the experience of working with the same company for at least an year. The self-employed applicant too must have a regular source of income.

If your personal requirements are kept on hold due to lack of funds then availing PL is the right option. If you are still confused about what this product is all about then are few more details that will help you get the better understanding of the product.

In PL the applicant can borrow a certain amount for a definite period of time from a lender and has to repay the amount in form of monthly installment. To avail the benefit of this credit facility the applicant doesn’t have to provide any collateral security or down payment.

Generally, this loan is provided for shorter term period that varies from 3 years to 5 years. The loan amount is decided according to repayment capacity of the individual. So the amount of funds that will be disbursed depends on how much an individual’s earn. The rates on personal loan online are fixed and don’t change with the change in the MCLR. So, the borrower has to pay the same installment amount throughout the repayment period.

The candidate looking forward to avail the facility can apply for the loan after checking the personal loan eligibility criteria. He/she has to fill the application form. The application forms are made available at the branches of the lending institute. The customer can even submit the application online. Along with the application form, the applicant has to provide the documents required by the lender. This includes identity proof, address proof and income proof.

Having said that, PL is the credit facility that can be availed to fulfill any monetary requirement of the individual. Now, no longer an individual has to sacrifice on his/her desire as one can always avail the funds for the current and urgent need and pay for it later.