A personal loan is one of the most sought-after financial products, with the latest figures published by the RBI supporting this statement. According to recent data, until February 2020, this financial product accounts for almost 28% of the total loan book of this country and registers a year-on-year growth of 17%.
With the advent of the online loan application process, availing this credit type is not a hassle anymore. Nonetheless, to complete this process successfully, one needs to fulfil certain personal loan eligibility criteria.
Personal loan eligibility criteria
Financial institutions check several parameters before approving a personal loan application; here is a list of the same –
- Age – 23 to 55 years
- Credit score – Above 750
- Monthly income – It depends on the requirement of a particular lender.
- Employment type – Work in a private or public limited company, or an MNC.
Apart from these, a lender may have additional requirements, which borrowers need to comply with. Since these above-mentioned pointers are crucial to any personal loan application, one can always work on them to boost their chances of loan approval. A personal loan calculator, in this regard, can help applicants compute the amount they will be eligible to avail per the parameters they enter.
Clever ways to improve personal loan eligibility
Here are few tips to improve upon the eligibility requirements to avail a personal loan in India without much hassle.
- Staying debt-free
Remaining debt-free always helps to improve the eligibility of an applicant. If that is not possible, one can try to minimise his/her existing debt before applying for a fresh one.
Implementing simple ways to manage debt will help applicants to improve their debt-to-income ratio, which will ultimately boost their chances of securing credit. Even though the requirement of this ratio may vary from one lender to another, borrowers should try to keep it as low as possible.
- Mention every source of income
Monthly income is a vital point of personal loan eligibility, as it helps lenders to assess a prospective borrower’s repayment capacity. Hence, it is vital to disclose other sources of income, if any, apart from the primary one. It assures lenders that the applicant can repay this advance successfully.
- Maintain a healthy credit score
To maintain their credit score, borrowers need to review it regularly and eliminate any discrepancies they notice. In case of any issues, they should get in touch with the respective credit bureau to iron it out. Removing these issues will positively reflect on their credit score.
Checking one’s credit score is not a hassle anymore; one can do it online within minutes. Since the CIBIL score is important for personal lending, one must ensure he/she meets the requirement without fail.
- Not applying for multiple loans at a time
Another practice that prospective personal applicants may try to refrain from, to improve their eligibility, is applying for multiple credits at once. When borrowers apply for an advance, financial institutions raise an enquiry with the bureaus to assess the credit profile of that particular customer. Hence, making more than one application at once, may project an individual as a ‘credit hungry, and increase the risk of rejection.
Instead, borrowers can assess different credit options and then apply for one.
Lenders like Bajaj Finserv offer personal loans with easy eligibility criteria and attractive interest rates. Their swift disbursal of credit also allows borrowers to meet any number of urgent financial requirements.
This process is further streamlined by pre-approved offers provided by the company on various financial products like personal loans, business loans, etc. This offer aims to make the loan application process smooth and less time-consuming. Borrowers can check their pre-approved offers by providing essential contact details.
Personal loan eligibility criteria can vary from one lender to another. Nonetheless, borrowers should keep the above-mentioned pointers in cognisance to improve their eligibility and apply for credit from any lender they deemed fit.
