Personal Loans are unsecured loans which require no collateral. This loan is very helpful for tackling various emergency issues like instant medical emergency, and immediate trip planning For getting this loan, a person should know the eligibility criteria with interest rate and repayment options. You need to know the eligibility criteria first while planning to get a personal loan for dealing with emergency expenses. It will include credit score, employment type and status, criteria of age, income requirement, work experience, capacity of repayment of your loans etc. You can easily check the loan eligibility in your area using online services these days like Personal Loan in Kolkata, Personal loan in Delhi NCR etc.
Benefits of Personal Loans
- Very less documentation works
- Quick processing
- Freely usage of your loan amount
- Emergency fund
Basic Eligibility for Taking a Personal Loan
Here, in this blog, you will know the top eligibility requirements for taking loans for immediate fund requirements.
Age
For taking a Personal loan, you should be between the ages of 18 to 65 as per the guidelines of major banks and financial institutions. There are many organizations and FinTech bureaus that offer loans based on pension income. So, it becomes very necessary to check the complete eligibility criteria for loan approval in your area.
Income
Income is one of the most important factors for taking a loan from a bank, lender or financial institution. Some banks and RBI bureaus provide Personal loans to people earning 15000 or above. Review your income as per the guidelines of the banks/lender before taking your Loan. Your income will be checked for every location. For instance: you are searching for the Personal Loan in Kolkata, then your identity and eligibility should be related to Kolkata with home address.
Experience in Work or Business
One year minimum work experience is needed for a salaried person. Some banks and lenders check for the business record if the individual is involved in any business. In this case, you should have the experience of at least 3 years.
Capacity for Repayment
If you want to get Personal loans, check the repayment loan eligibility guidelines of the bank or lender. You should have the complete capacity to repay all your debts incurred on the amount that you have taken as a loan. Another thing is that you need to make sure that your all credit obligations including the proposed loan don’t exceed 50-55% of your entire income sources.
So, it becomes very necessary that you should read all the guidelines related to your loan.
Type of Employment
A salaried professional always gets the opportunity to have a lower interest rate just because of stable income. So, banks and financial institutions prefer to give loan to the people working in public sector and those who are in top-notch organizations. So, we can say that your chances of getting a Personal loan will depend on your employer’s reputation.
Credit Score
Most of the time, banks and lenders always check for the credit score or CIBIL of the person. With this, they check for the creditworthiness of the person. Also, this three-digit credit score shows the past history of the individual’s credit. The minimum score for taking any type of loan is 750 and it will be better if your CIBIL is higher than this limit. So, it is always recommended to check and review your CIBIL and thus it will help you in taking good loans, when necessary.
Bank Balance
For getting instant loan to your account, it becomes very necessary how much amount you have maintained currently. If you show your bank balance copy to the bank or lender with enough balance to pay the EMI or debt for one or two months, the chances will go higher for giving you the Personal loan.
Summary
A personal Loan is a type of unsecured loan, and it can be taken in any emergency situation to tackle financial issues. One can easily get a personal loan from a trusted banker, or lender or through an RBI-associated agency. These days, financial organizations check for the eligibility and the capability of the individual before approving the loan. They prefer govt employees and people working in a reputed organization. You need to submit some documents bearing your identity and eligibility for the loan. There are some necessary factors that every bank or financial institution checks, like your age, capacity for loan repayment, experience of work or business, income requirement, and so on.