Personal Loan Eligibility Criteria
There are certain factors or criteria stipulated by banks which needs to be satisfied before loan applications are approved. They are
|Age||Minimum 21 years|
|Maximum 65 years|
|Employment Type||Salaried or Self-employed|
|Employment status||Employed/In-business for at least 2 yrs. and at least 1 yr. with current employer/business|
|Minimum Income||Rs.20000 – Rs.500000 per month (Varies according to area, which is higher in cities)|
|Maximum Loan Amount||Rs.70 lakhs (Based on your repayment capability)|
|Tenure||Minimum – 6 months|
|Maximum – 60 months|
|Credit Score||Preferred 750|
These are the general criteria which you need to satisfy for your loan to be approved. These criteria will change from bank to bank.
Factors Affecting Personal Loan Application
Apart from the eligibility criteria there are certain factors that affect your loan application mainly the minimum salary expectation and your loan amount eligibility. They are
- Location:the place where you stay play an important part in your loan application. This determines the minimum salary amount for you to be eligible for a personal loan. The minimum salary is higher in the cities and more so in the case of metropolitan cities like Mumbai.
- Income:The higher the income the better loan amount you will get. This also shows that your repayment capability is excellent.
- Housing situation:Whether you stay in your own house or in a rental property also play a part in determining your loan amount. This is because staying in a rental property reduces the disposable income, which means that your repayable capacity is reduced.
- Company of employment:Working for a reputed company close to a year could indicate to the lender you are in a stable job, the better the rating of the company the better the personal loan interest rate can be negotiated.
- Existing credit:If you already have another loan or credit card debt will play a major factor in determining your loan amount and interest rate.
- Credit history:Your credit history based on which your credit score is calculated is very important. It is a primary factor upon which the loan amount, interest rate and tenure depend upon. If there is any discrepancy in your credit history, there are chances of your loan being rejected outright.