Personal loans are a financing option that you can utilize in times of a financial crisis or for a variety of other reasons, such as home improvement, business investments, medical bills, courses and certifications, travel, and a whole lot more. The dynamic nature of personal loans makes them a highly useful financial tool.
However, getting approved for a personal loan can be a tricky process if you do not qualify for the minimum eligibility criteria or if you have incorrect documentation. Hence, it’s important to understand the most essential personal loan eligibility requirements, so that you can take steps to ensure you meet the criteria.
A high credit score
One of the most important personal loan eligibility criteria to get approved is to have a high credit score. While the exact credit score requirements may vary for various banks and financial institutions, it is a good practice to have a credit score of above 750 to qualify for most personal loan applications.
You can maintain a high credit score by timely repayment of credit card dues and loan Equated Monthly Instalments (EMIs) and prudent use of credit lines. Do not take loans that you will not be able to successfully repay, as it can affect your credit score negatively. Moreover, it is also a good practice to periodically check your credit report for any errors.
Age requirements
Generally, banks offer loans to applicants between the ages of 18 to 65. However, the age criteria may vary slightly from bank to bank. Moreover, certain banks also offer loans to individuals above 65 years based on their pensions.
If you fall within the eligible age criteria, you can easily apply for an instant personal loan online through IndusInd Bank’s website and get your loan disbursed quickly. Here are some salient features of IndusInd Bank Instant Personal Loans:
● 100% online application and verification
● Quick loan amount disbursal to your bank account
● Sanctioned loan amount between ₹30,000 and ₹5 lakh
● No-collateral required
Minimum income requirements
All banks have a minimum income requirement for personal loans, ranging from ₹15,000 to ₹25,000 per month, depending on the bank’s policies. However, banks prefer to offer loans to individuals with incomes of ₹25,000 per month or higher. The higher your monthly income, the more chances that your instant personal loan gets approved along with a higher sanctioned loan amount limit.
Stable employment history
Another important factor in getting approved for a personal loan is to have a stable employment history, preferably in a government organization or a large corporation. Many banks require you to be gainfully employed in your current organization for at least one full year to be eligible for a personal loan or require a minimum of two year of work experience. Personal loan requirements for self-employed individuals may vary from bank to bank, but they will all require proof of income.
How to calculate personal loan eligibility?
There are many financial websites that allow users to check their personal loan eligibility by using an online personal loan eligibility calculator. If you want to check your eligibility online, all you need to do is enter the required details in the personal loan calculator, and it will show you whether you are eligible for an instant loan, your estimated applicable interest rate, and the loan amount you are eligible for.
Using a personal loan eligibility calculator is useful as it gives you an idea of where you stand before you go ahead and make a hard inquiry with a bank.
To sum up
Different banks have varying personal loan requirements. By maintaining a healthy credit score and keeping records of your income, you can improve your chances of being eligible for a personal loan by a huge margin. Make sure to use a personal loan eligibility calculator to assess where you stand as a borrower before you go ahead and apply for a loan.
