Roy Rahul 
Salaried employees looking for Instant Personal loans will be happy to learn that, in most cases, all they need is a steady job and regular income to qualify for these loans. A few minutes of your time will let you know if you’re eligible for a personal loan and submit an application. Salaried individuals can avail of a Personal Loan for any purpose, provided they fulfill the finance provider’s Personal Loan eligibility criteria. Generally, these are unsecured loans, and most lending institutions’ eligibility conditions are easy to meet. However, those who fail to meet these conditions get their loan application rejected. Naturally, loan rejection is not in an applicant’s best interest, as it wastes their time and harms their credit rating. Therefore, it is always wise to plan the loan application, research different lenders’ eligibility and documents required for personal loan, and ensure you can fulfill their requirements.
Here is everything one must know about instant loan eligibility.
Factors Affecting Personal Loan Eligibility
Finance companies look at several factors to determine an applicant’s eligibility. Knowing these factors helps understand the impact and act towards boosting the eligibility to attract easier loan sanctions. Read on to learn more about these factors:
Age: Age is one of the most crucial factors determining an applicant’s repayment capability. Generally, the applicant should be 21 to 58 years of age at the loan term beginning and end. Applicants closer to their retirement age often do not qualify for a Personal Loan since they don’t have many earning years left in their profile.
Monthly Income: Monthly income is a prime indicator of an individual’s repayment capacity. The higher their income, the easier they can afford the monthly repayments. That is why most lending institutions have a minimum salary as a part of their loan eligibility requirements. Personal Loans at Clix Capital can be availed by salaried professionals with a minimum salary of Rs. 20,000.
Work Experience: Besides income, loan providers consider the applicant’s work experience. The applicant needs to have a work experience of at least 12 months, with 6 months in the current organization.
Monthly Obligations: Most NBFCs consider an individual’s fixed monthly expenses to calculate their net disposable income and determine their monthly repayment capacity. Generally, qualifying for a Personal Loan becomes difficult if the DTI ratio is over 50%, which means the fixed monthly expenses should not exceed 50% of their monthly income.
Credit Score: A good credit score indicates a consistent repayment history and responsible credit handling. Since Personal Loans are unsecured loans that do not provide security to lending institutions, checking credit score is critical. Ideally, it should be at least 630 or higher. An applicant may still get a loan with a low credit score, but the terms and interest rates might be unfavorable.
How to Check Personal Loan Eligibility?
You already know the determining factors for loan eligibility, including age, loan requirement, credit score, income, employment, and work experience. You can understand the eligibility criteria on the NBFC’s website instead of visiting the loan provider’s office or calling their customer representative to enquire about eligibility. You can also use a Personal Loan EMI calculator to calculate your future EMIs online within seconds before applying for a loan. Digital advancements have made Personal Loans easy to access without physical documents. All you need to do is fulfill the Personal Loan eligibility and documents required and apply. Picking the right loan offer will give you a hassle-free experience with approval in minutes.
