Offered by banks and Non-Banking finance companies (NBFCs), personal loans enable you to purchase a wide variety of consumer products and goods. You can avail up to 100% finance and can repay the loan in pocket-friendly monthly installments, over flexible repayment tenures. However, before applying for the loan, you must ensure you are eligible for it. Here’s how you should check your personal loan eligibility.
Check if you fit into the age criteria mentioned by the lender
All lenders specify the minimum and maximum age limits to determine eligibility for personal loan. If you wish to avail a loan; you need to be between the age of 18 and 70 years (i.e. the maximum age at the time of loan repayment).
Check the employment criteria required by the lender
After ensuring that you fit into the age criteria, you can use a personal loan eligibility calculator to check if you fit into the lender’s employment criteria. The employment criteria are categorized in two parts – the employment type and the income earned by you. You may be a salaried or a self-employed individual to avail this loan, and every lender has different salary-specific eligibility criteria.
Check if you can avail the loan in the city you’re living in
Another thing to check eligibility for personal loan is the city of your residence. While it is rather easy to avail the loan from a bank, not all NBFC lenders offer services in every city. So, even if you may have found an NBFC lender offering low interest-rate loans, you may not be able to avail it, if the service is not available in your city. Also, most lenders need you to be residing in the city from where you are applying for the loan, for at least one year
Check if you have the necessary credit scores to apply for the loan
You need to provide your credit scores while applying for all kinds of loans, including a personal loan. Your eligibility is determined based on your credit score, and you need to provide a credit score of 750 points of 900. If you don’t have the necessary ratings, you may still avail a loan, but the interest rate charged may be higher.
If you are eligible, check the maximum loan amount you qualify for
The final thing you need to check is the maximum loan amount you qualify for. You can use a personal loan eligibility calculator to check the maximum loan amount the lender can offer, based on your income and affordability. The loan eligibility calculator helps understand whether or not you are eligible for the loan
Final word: Checking eligibility for personal loan is incredibly essential before applying. If you are found ineligible, your loan application will be rejected, and your credit scores will be affected. So ensure that you run the eligibility check before applying for the loan.
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