A personal loan is a popular financing option that is available without the requirement of any collateral. The loan is thus easy to avail and is accessible to a wide range of aspiring borrowers across varying income segments. It also eliminates the risks of asset securitisation, which promotes financing through a personal advance among many. To avail the loan, you just need to meet a handful of eligibility requirements. These eligibility requirements span across similar parameters, but can be different from one lending institution to another. It is thus crucial that you confirm with your lender regarding the eligibility requirements before applying for the loan.
Once fulfilled, you can proceed to arrange the necessary documents and apply for the advance with your selected lender. To seek early approval and disbursal, you can choose to apply for the loan through an online loan app. These apps are easy to access from anywhere and enable easy application from the comfort of your home. Let’s take a look at the essential checklist of things that you need to fulfil as eligibility parameters to avail a personal loan.
Checklist of Eligibility Requirements for Personal Loan
- Age
Financial institutions require aspiring borrowers to be within a certain age range for the purpose of availing a personal loan. The age range indicates the remaining working years of the individual and helps the lender assess the tenure for which it would be suitable to provide the loan. With reputed lending institutions, the age range for availing the advance falls between 21 and 58 years. You can confirm with your lender to accurately determine your age eligibility for the advance.
- Occupation
Personal advances are typically designed to fulfil the urgent financing needs of the salaried class. However, lending institutions today make sure to provide the necessary financing to borrowers across all occupational engagements. So, whether you are a salaried or a self-employed individual, availing a personal loan is now conveniently possible for you. For salaried individuals, however, employment with a reputed organisation, such as a private/public sector undertaking or an MNC works favourably in availing a personal loan.
- Monthly income
Your monthly income is a crucial parameter that lenders check when assessing your personal advance application. It helps them determine how much you can afford to pay as monthly EMI. Accordingly, they arrive at a suitable loan amount to provide as financing. With reputed financing institutions and even online loan apps, the threshold is pretty low and is easy to meet. You simply need to have a minimum monthly income of Rs.15,000 or above to be eligible for the advance.
- Stability of occupation
Occupational stability is another crucial aspect that lenders check before providing you the finance. Your tenure at the present company as well as your total work experience helps the lender understand the stability of your financing source. A stable occupation also means you have the capacity to bear the necessary repayment liability without exhausting your finances in the coming term. With reputed financial institutions, you need to be necessarily employed for a total of 6 months at least to be able to apply for the loan.
- Minimum credit score
Apart from the above-mentioned requirements that are applicable across lending institutions with varying fulfilment needs, credit score is another aspect that obtains critical importance when it comes to determining personal loan eligibility. While it may not be a necessary parameter to fulfil for availing a personal loan with the likes of online loan apps, which makes the loan easy to avail, holding a high credit score always works in favour of the application when applying for the advance.
Ideally, for the purpose of availing a personal advance, an individual should hold a high credit score. A high credit score indicates the creditworthiness of the individual and allows the lender to assess the risk associated with their borrowing profile based on the past repayment habits as well as other credit behaviours. Your credit score can be the crucial reason for negotiating and availing favourable terms on the loan, including a low rate of interest and other nominal charges.
Conclusion
When applying for a personal loan, make sure to check these parameters with your selected lender for an accurate fulfilment of the eligibility criteria. With suitable eligibility fulfilment, it is today convenient to avail a personal advance of up to Rs.1.5 Lakh with ease. You can also negotiate for the EMIs payable and the loan tenure with the lender depending on the available flexibility and your eligibility for the advance.
