Personal loan eligibility is something that many people do not consider before applying for these loans. They end up applying and sometimes, their loan applications get rejected for reasons that are unfathomable to them! To avoid this situation, it is always best to make use of a Personal Loan eligibility calculator to work out how much you are eligible for in terms of the personal loan amount. Using this calculator before applying for a personal loan will help you apply for a suitable amount, thereby increasing your chances of getting the loan approved.
Personal loans are unsecured loans and do not require any collateral/security to be provided by the applicant. As a result, financial institutions have varying eligibility criteria in order to determine whether a person is eligible for a personal loan or not. Although, as mentioned, the criteria vary from one institution to another, the general eligibility requirements include the following:
- Age- Should be between 25 and 58 years (this slightly varies depending on the financial institution in question)
- Salaried professional working in a public/private/multinational company (the more reputed your employer, the better your chances of securing a personal loan)
- Resident of India
- Minimum net monthly salary (depending on the city where the applicant is living in at present. This requirement also varies from one lender to another)
Lenders wish to ascertain whether you have a stable employment history and whether you are currently gainfully employed at a good organization. They also wish to ascertain whether you have the capability to repay the personal loan every month. Of course, your credit score also matters since lenders will automatically approve applicants with credit scores above 750. You also need to provide a few documents in order to help the lender verify your credentials. These include the following:
- Proof of Identity- PAN Card/Driving License/Passport/Voter ID Card
- Proof of Address- Passport/Driving License/Latest Mobile Bill/Ration Card/Letter from Employer with Admin/HR signature
- Proof of Employment- Employee ID Card
- Proof of Income- Salary Slips for last 2 months and Salary bank account statements for last 3 months
Once these documents are verified by the lender and are found to be in order, your loan application is sanctioned without any hassles. You have to meet this basic eligibility criteria and provide all necessary documents in order to avail a loan in India. You should compare personal loan providers on the basis of parameters like the interest rates, terms and conditions and so on.