A personal loan is a flexible loan that can help you meet various financial needs, such as home renovation, medical expenses, education costs, or even a dream vacation. The best part is most of the personal loans are quick disbursement, relatively easy application compared to other loans and also you have the option to apply online either through the website of the lender or the application but it depends on the lender that if they provide online service or not. However, to qualify for a personal loan, did you know what the eligibility criteria are? Let’s understand!
Here’s a quick overview of the personal loan:
| Interest Rate | Income | Age | Documents Required | Loan Tenure | Processing Fee |
|---|---|---|---|---|---|
| 10.50% Onwards | Minimum ₹20,000/month | 21 - 60 years | ID proof, Address proof, Income proof, Bank statements | Up to 7 years> | Up to 6% of loan amount |
Personal loan eligibility means meeting certain requirements to get a loan. These requirements can differ between lenders but usually include your age, income, job status, credit score, and current debts.
Understanding personal loan eligibility is really important because it helps you:
Assess Your Chances of Approval: Knowing what your eligibility criteria are helps you to evaluate whether you qualify for a personal loan or not.
Improve Your Chances of Approval: By understanding the criteria, you can take steps to meet the requirements and enhance your eligibility.
Avoid Rejections: if you apply for the loan without understanding the criterias then the application will be rejected by the lender.
| Criteria | Salaries Individual | Self-employed or businessman |
|---|---|---|
| Age | 21 years to 60 years. Maximum age should be 60-65 years (at the time of loan maturity) | 21 years to 55 years. Maximum age should be 60-65 years (at the time of loan maturity) |
| Nationality | Indian | Indian |
| Net Monthly Income | Rs.20,000 | Rs.20,000 |
| CIBIL Score | Above 750 | Above 750 |
| Employment/ Business stability | 1 year | 2-3 year |
| Processing fee | Up to 6% of the loan amount | Up to 6% of the loan amount |
| Debt to income ratio | Below 35% | Below 35% |
| Residential stability | Should be stable at least 2-3 years | Should be stable at least 2-3 years |
| Collateral required | In case of loan amount is high | In case of loan amount is high |
| Maximum Loan Tenure | Up to 7 years (depends on the lender) | Up to 7 years (depends on the lender) |
| Guarantor required | Many be in case of loan amount is high | Many be in case of loan amount is high |
Documents Required:
| Documents | Salaries Individual | Self-employed or businessman |
|---|---|---|
| Proof of Identity | Passport, Voter’s ID, Driving License or PAN Card | Passport, Voter’s ID, Driving License or PAN Card |
| Proof of Residence | Passport or utility bills | Passport or utility bills |
| Proof of Income | Bank statement of salary account for the past two years | Audited financial statement of the past two years |
To get a good personal loan, you need to meet certain requirements. These include your age, income, job stability, credit score, current debts, and where you live. By knowing and meeting these criteria, you increase your chances of approval and getting better loan terms. Regularly check your credit report, keep a good credit score, and manage your money well to help reach your financial goals with a personal loan.
How can EazyBankLoan help you in taking a loan? We understand the process of procuring a loan can be stressful. That is why we take care of your Loan application process, saving you time and hassle by handling the paperwork and communication with the loan providers.
Check the details here at EazyBankLoan
Need help? Reach out at support@eazybankloan.com
Yes, but your chances of approval may be lower, and you may receive less favorable terms. Improving your credit score can enhance your eligibility.
Higher income improves your loan amount eligibility by demonstrating better repayment capacity. Lenders typically prefer borrowers with stable and sufficient income.
3. Is it necessary to have a long credit history to get a personal loan?
While a longer credit history can positively impact your score, lenders also consider other factors like income, employment stability, and existing obligations.
Yes, self-employed individuals can get personal loans, provided they meet the income, business continuity, and credit score requirements set by lenders.
You can improve your debt-to-income ratio by paying off existing debts, increasing your income, and avoiding new debt until your ratio is within acceptable limits.
Documents like utility bills, rent agreements, and property ownership papers are commonly accepted as proof of residence.
Yes, many lenders offer online application processes for personal loans. Ensure you meet the eligibility criteria before applying to increase your chances of approval.
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