Earlier, it is tough for people to apply for a personal loan. Not only this but the borrower is also required to wait in a queue for a long time and needs to submit many documents. You can easily apply for a personal loan from your home convenience today. Thanks to technology, you can easily apply for a personal loan in less time.
Personal loans are free from collateral; the lenders need to evaluate the personal loan eligibility carefully before availing of this loan. In this article, we are going to tell you the eligibility criteria for a personal loan that you should know before applying for it.
Eligibility for a personal loan
The eligibility of personal loans refers to the evaluation process that is undertaken by lenders to decide whether to approve the loan. Checking the eligibility criteria for a personal loan also fall under the KYC process.
- Age
The borrower’s age should lie between 21 and 60 years to become qualified for a personal loan. You have to submit the necessary documents like a PAN card, Aadhar card, driving license, passport, and birth certificate to show your age and apply for a personal loan easily.
- Identity
It would be best if you were an Indian citizen to become eligible for a personal loan. You have to submit the necessary documents like an Aadhar card, PAN card, ration card, voter ID card, passport, driving license, etc. You should carry all these documents and meet the identified criteria to become eligible for a personal loan.
- Monthly income
Although the monthly income criteria differ from one lender or another, your earnings must be more than the total sum stipulated by the lender to make you eligible for a low-interest rate personal loan.
- Business or job profile
The nature of the business or job of the borrower also plays an important role in the eligibility for a personal loan. For example, if you have a stable or full-time job, then you have more approval chance of a personal loan. In this case, the lender may provide your personal loan at an attractive interest rate.
So, if you have a stable business or have a recession-proof format, the lender lowers the interest rate on a personal loan. On the other hand, if your business is not stable, then you get a personal loan at a high-interest rate or may not be eligible for a loan.
- Credit score
The credit bureaus assigned the credit score. This score indicates the credit profile of the borrower and determines whether they are eligible to get a personal loan or not. If the credit score is high, it shows that the borrower can keep their debt in control. On the other hand, if the credit score is low, lenders think that borrowers frequently default on card repayment or loans.
Conclusion
It is easy to understand the eligibility for a personal loan and apply for it. Before applying for a personal loan, it is suggested to look at your credit score, age, monthly income, and job profile to speed up the loan process, get approval, and meet your personal needs.