It is quite tough for the borrower to meet the eligibility criteria set by lenders to get the loan instantly. If you are also one of them, then you can easily know the eligibility criteria for a personal loan here.
The demand for personal loans is increasing as people have come in need of instant funds. If you want to apply for a personal loan, you should read this complete article and meet the eligibility criteria.
Personal loan eligibility criteria
A personal loan is a loan that you can borrow from a lender to meet your unexpected expenses, buy a vehicle, pay off debts, etc. you can easily get a personal loan from any bank.
Usually, the personal loan eligibility criteria differ from one lender to another. Here are the common facts of eligibility criteria for a personal loan.
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Age
Your age should lie between 19-65 years to become eligible for personal loans. Lenders need to submit your age by checking your ID proof, like your PAN card, aadhar card, etc., and then decide whether your loan request is approved for a personal loan or not.
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CIBIL Score
The CIBIL score evaluates the creditworthiness of the borrower. It plays an important role in deciding whether you are eligible for a personal loan or not. Lenders prefer a 700 credit score or more to provide you with a personal loan.
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Profession
Lenders always check whether you have a source of stable income or not to repay the loan amount. So, understanding the profession is important to determine borrower eligibility. In this way, you should be a self-employed or salaried individual to become eligible for a loan.
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Minimum monthly need
The minimum monthly requirement differs from one lender to another. To avail of a personal loan, the monthly income of a salaried individual should be more than Rs 15,000, and the minimum balance for self-employed should be Rs 8000 or more.
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Pending EMI
You should not have any pending EMI from your previous loan if you want to become eligible for a personal loan.
A way to improve the chance of personal loan approval.
After understanding personal loan eligibility, you should also know the ways to improve personal loan approval chances.
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Improve the CIBIL score.
Making EMI payments on time and keeping the credit use to less than 30% helps you to maintain a good CIBIL score. It helps you to get approval for your personal loan request from the lender.
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Lower your debts monthly.
It is suggested to the borrower to keep their monthly debts lower by around 50% of their monthly income. A debt above this range may allow the lenders to think about the creditworthiness of the lender or not approve your loan request.
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Confirm the optimal loan amount.
Applying for the right amount of personal loan is important to make more approval chances. For this, you should use the personal loan EMI calculator to calculate the right amount of loan and EMI and then put a request for the same to the lender.
Conclusion
Here is how you can easily make a high chance of approval of your personal loan by following the above tips.
