A personal loan is an easy approval and quick disbursal financial tool which provides individuals with the much-needed funds to finance their needs. The main requirement that one requires for the loan is to fulfil the eligibility criteria. The eligibility criteria for different lenders vary based on the loan amount and other factors.
Some of the common eligibility factors for a personal loan include:
Eligibility Criteria For Approval Of Personal Loan:
- Age: The age of the applicant must be between 21 to 60 years. While some lenders allow a little flexibility, you can discuss with the lender for the exact age eligibility.
- Profession: The applicant for the loan must either be a salaried individual or must be self-employed.
- Employment: The individuals must be employed for a minimum of one year as a whole and a minimum of 6 months in the organisation presently working in.
- Salary: For salaried employees residing in Mumbai/Delhi, the minimum monthly income must be 25,000 per month.
For salaried employees residing in the rest of India, the minimum monthly income must be Rs 20,000.
For a self-employed individual, a minimum yearly profit after tax is determined based on profession/industry.
- Credit Score: The credit score for the applicant must be over 750.
These are some of the eligibility criteria that one must fulfil to get a personal loan. These are only eligibility criteria but do not guarantee a loan. For that, you will have to fill the application form and check with the customer care executive for approval.
Factors affecting eligibility criteria
Though various factors are affecting the eligibility criteria for online loan app. Even if you do not fulfil the eligibility criteria, these are some factors that can help you:
- Credit score: Your credit history plays a major role in determining the eligibility for a loan. A credit score determines your creditworthiness and repayment potential. This will relax your eligibility criteria and help in avoiding any rejection of your loan application. The higher the credit score, the more likely you are to get the personal loan accepted.
- Employment: Working for a respectable organisation speaks a lot about your job and its stability. In such a situation the minimum salary requirement can also be reduced by the lender. The maximum personal loan amount, interest rate and repayment tenure might also change based on your employer and its reputation.
- Borrower’s location: Your area of residence also plays a vital role in deciding the minimum salary eligibility. For metro cities like Delhi, Mumbai, Chennai, Bengaluru, Hyderabad and others, the minimum salary requirements are higher compared to the minimum wage requirements in the Tier II cities and towns.
- The situation of housing: Whether you stay in a rented house or your own, also plays a vital role in minimum salary requirements. If you are in a rented house your expenses increase, the minimum wage required for a personal loan also increases.
- Other loans: If you are already under some credit, like a house loan, car loan or credit card debt, that too would impact your minimum wage requirement. An extra credit raises your minimum wage requirements.
These are some factors that can provide you with some leniency on the minimum wage for a personal loan. If you fulfil all the above requirements, you can apply for the personal loan by downloading the below steps:
Step 1: Download the online Loan App from Google Play Store, if you are using an Android phone or Apple Store if you are using an iOS phone.
Step 2: Register on the app and fill the personal loan application form.
Step 3: Upload all the necessary documents required like proof of identity, address, banking details and professional details.
Step 4: Submit your form.
If your application is approved, a customer care executive will get in touch with you.
A personal loan is a collateral-free loan option, that you can use for any purpose. Though one is required to have a minimum income, it is important that you too take note of all your expenses before applying for the loan.