Factors that decide your Personal Loan Eligibilityby Mohit Saxena Apply and Get Instant Personal Loan Approval
If you take a loan at a high-interest rate, it becomes difficult for you to repay them and affect your daily-life expenses. It is like falling into a dent trap which will take a lot of effort to extricate yourself from it. The best way to avoid yourself falling into a debt trap check all the personal eligibility factors that can help you in getting the personal loans at a competitive interest rate.
Here are some of the main factors that decide your Loan eligibility
Your age helps the lender in ensuring that you are having an adequate number of working years remaining. Mostly, the lenders of the top banks and financial institutions prefer salary employed who falls within the age group of 23 years to 58 years.
In the case of self-employed individuals, be it self-employed professionals and non-professionals, the eligible age to get personal loan eligibility is between 28 years and 65 years.
One of the major factors that decide your personal loan eligibility is the repayment capacity. The bank will check your repayment capacity with your past payment records and then evaluate whether you are in a position to repay the loan over the desired tenure. They evaluate the same by checking your credit score, outstanding loans, current income, and your current bank balance.
It is a three-digit number that decides your creditworthiness. The score usually ranges between 300-900. Any score that is closer to 900 is considered a good score to get a loan at the best interest rate. You may even get a pre-approved loan, which will need little or no documentation. If your score is 750, or above, you are considered a borrower with good repayment ability.
Should have clear out all the existing dues
If you are already having one loan ongoing which is about to end in the next 6 months, the lender, in that case, may not be considered eligible to apply for another loan. The lender evaluates based on the parameter like a fixed obligation to income ratio. Under the same, the lender determines the personal loan eligibility. The lender will approve a loan of the applicant who is having FOIR up to 60% of the net salary. It is advisable that if you have left to pay only a few EMIs, prepay it, then apply for new credit.
The minimum monthly income requirement to get a personal loan is Rs 25000 per month. Banks and financial institutions prefer to give a personal loan at low-interest rates who is having a stable income. For instance, if your monthly income Rs 30,000, then the bank expects that your fixed obligation does not exceed 50%. Higher is your income better are your chances of loan approval.
Before applying for a personal loan, it is a must to check all these factors and determine the personal loan eligibility. These are the main factors that make up your financial profile and are taken into consideration by the lenders.
Created on Apr 7th 2021 06:20. Viewed 842 times.