Personal loans are the most in-demand product in the lending sector. These loans being unsecured in nature are attracting many borrowers and the fact the loan amount can be used as per the discretion of the applicant without any interference of the lender makes them even more attractive. With the growing number of personal loan providers, the rate of interest being offered is competitive. It is easy to grab a worthy deal if one does proper research and carefully compare and study the offerings of different lenders before choosing on to the one.
Personal loans are easy to procure. They have easy eligibility criteria and require minimal documentation. But it is very important to note that the eligibility criteria as laid by the lenders are non-negotiable and the borrower must vary of checking it thoroughly before applying for the loan to avoid getting his application getting rejected. If a borrower doesn’t hold up to personal loan eligibility, chances of the personal loan not being approved are high which would significantly hamper his credit score.
Being unsecured in nature, the personal loan interest rate is usually higher in comparison to other secured loan products. These loans are offered to the eligible applicants having a steady income and repayment capacity. Some lenders offer personal loans even to applicants having a fair or poor credit score. To avail of a personal loan, one should comply with the following.
The borrower must be between 21 to 60 years of age.
The borrower must be an Indian citizen.
The borrower must be a salaried individual. He may be employed with a private, public or multinational company. These loans are also offered to self-employed individuals provided they have a steady inflow of income.
While every lender has a specific set of requirements and eligibility criteria but it is more or less the same and in general revolves around the factors mentioned above.
Personal loans offer the requisite financial help in the need of the hour. With online personal loans available almost instantly, it is important to choose the lender wisely, read the terms and conditions thoroughly and get hold of the additional fees and charges so as to make a well informed and calculated decision. Since lenders are strict about the eligibility criteria, it is advisable to go through it well in advance. One can check the eligibility criteria of different lenders on their digital platforms or on Fintech platforms like that of LoansJagat wherein you can compare different lenders for their eligibility criteria, personal loan interest rate, EMI, loan tenure, loan amount, processing fees and prepayment charges. Comparison helps in choosing the best lender which matches your profile.
Knowing the correct eligibility criteria makes the whole process simpler. Lenders have a personal loan eligibility calculator on their online platforms wherein the borrower can enter their details to check if they are eligible or not.
Here are a few Dos and DONTs to improve your personal loan eligibility.
- Always check for the personal loan eligibility criteria of the lender before applying for the loan. Chances of loan application getting rejected reduce considerably if you comply with the eligibility criteria.
- Always apply for the loan amount for which you are eligible on the basis of your financial credentials. A personal loan eligibility calculator helps you know the loan amount you are eligible for.
- Strive to pay the monthly EMIs on time to maintain a good credit history and CIBIL score.
- Keep your credit utilization ratio under 30% to enhance your credibility.
- Avoid taking multiple loans simultaneously.
- Don’t forget to make the loan repayments on time.
- Avoid having a high credit utilization ratio.
- Don’t apply for a loan with different lenders frequently.
One can avail of personal loans through banks and NBFCs. In comparison to banks, NBFCs have less stringent eligibility criteria and are more flexible in their approach. These financial institutions offer loans even to low credit score applicants. It is thus better to do prior research and choose the lender appropriately. A good lender-borrower relationship for a personal loan is based on transparency and disciplined repayments. If you are regular with the same, you can opt for a personal loan overdraft facility as well and use the money for meeting out financial emergencies.