How to check Personal Loan eligibility?

Before applying for a Personal Loan, you must check if you meet its eligibility criteria. This helps you avoid rejection and ensures a smooth application process. Additionally, checking Personal Loan eligibility in advance saves time and effort. Here are ways to check your Personal Loan eligibility:

Use an eligibility calculator

If you want to check your Personal Loan eligibility, one easy way to do it is to use the eligibility calculator. This tool helps you estimate whether you qualify for a Loan based on your age, monthly income, employment type, and existing financial obligations. Once you enter such details, it provides you an estimated Loan amount for which you may be eligible. It is a quick and convenient way to evaluate your eligibility before applying for this Loan.

Check age criteria

Age is a crucial eligibility factor. Applicants must be between 21 and 60 years old. So, you cannot apply before 21 even if you fit other criteria. Thus, you must be at least 21 when you are applying for the Loan and not more than 60 at the time of its maturity. Meeting the age requirement ensures better approval chances.

Assess income requirements

A stable income is necessary to qualify for a Personal Loan. If you reside in metro cities like Mumbai and Delhi, you must have a minimum monthly net income of Rs. 25,000. However, depending on the bank, you must have atleast a monthly net income of Rs. 15,000 in other cities. Banks assess your financial stability before approving your Loan application.

Review employment status

Banks prefer applicants with a steady job or business. Salaried individuals working in government or reputed private organisations are preferred. Meanwhile, self-employed individuals must show their business continuity and stable income. Additionally, banks prefer applicants with at least one year of work experience. A steady employment record improves your chances of getting approved for a Personal Loan.

Check credit scores

A credit score showcases your financial discipline and repayment history. Most banks require a score of at least 720 or above. Additionally, a higher score increases your chances of getting better Loan terms and interest rates. So, regularly maintain a decent credit score to secure an Instant Personal Loan. You can check your credit score through banks or credit bureaus.

Verify required documents

Banks require specific documents to process a Personal Loan application. So, check the required paperwork in advance to ensure a smooth verification process. Some commonly asked documents are your KYC documents, bank statements for the last three months, and Form 16 with the latest salary slips. Ensure these documents are accurate and updated before providing them to your bank to speed up your Loan process.

Conclusion

Checking Personal Loan eligibility before applying ensures a hassle-free experience. Using an online eligibility calculator, reviewing your income and credit score, and maintaining a low debt-to-income ratio improve your approval chances. By following these steps, you can check your eligibility for this Loan.