What Can Affect My Personal Loan Eligibility?

A personal loan is an excellent way to manage a host of emergency and non-emergency expenses. Be it a medical emergency in your family, wedding, vacation, child’s education, or something as simple as purchasing a new appliance or even a mobile phone.

So, if you’ve been thinking to take a personal loan, it’s good to know whether or not you are eligible for one. Each lender has eligibility parameters, and your personal loan application will get green signal, if they find you eligible for the loan.

But just like every other loan, applying for personal loan online also requires you to pass the eligibility test. While the eligibility criteria can differ between lenders, there are a few things that every lender needs to see in you to get approval for the loan.

Factors affecting personal loan eligibility:

  1. Your monthly income

Your monthly income is a vital factor in obtaining any loan. In secured loans – home loan, gold loan or car loan, it is often supported by security or collateral. It’s not the same with a personal loan. The lender wants to ensure that you have sufficient monthly income, which will allow you to repay the loan on time.

  1. Your credit score

A credit score is a three-digit number based on your credit history and it lets the lender make out how reliable you’ve been with loans and credit cards previously. Most lenders in India rely on the credit score, which falls between 300 and 900. Higher score qualifies you of getting a personal loan approved. Generally, lenders prefer applicants with a score of 700 and above. If the score is below 700, improving the credit score before applying for the loan becomes a priority.

  1. Your age

Your age factor enables the lender to understand that you have a good number of working years remaining. In most cases, lenders prefer salaried individuals between the age group of 23 and 58 years. Since people under this category are self-employed, they can continue working even after the standard retirement age of 55-58 years. Thus, the upper age limit is up to 65 years.

  1. Your work experience

Borrowers with a huge work experience are basically considered to be financially secured as compared to those who have just started working. The minimum experience may differ depending on the lender you select, your occupation and other factors as well.

  1. Your current liabilities

The last important factor of personal loan eligibility criteria is your current liabilities. If you are already under an existing loan – home loan, education loan, etc. the lender would surely be interested in them. The lender wants ensure sure that you have enough income to repay your existing loans along with the new personal loan you are planning to avail.

So, before going for the loan, bear all these requirements in mind to increase your chances of obtaining of a personal loan online easily. Moreover, as a borrower, you can also use these factors to negotiate on your loan terms. For instance, you can demand a favourable interest rate if your monthly income or credit score is high without drawbacks.

End thoughts

Go on, check your eligibility and apply for a personal loan online, here. Hopefully, this has answered a few of your doubts and cleared the confusion around your personal loan. For any more queries or questions about how personal loans work and to know more about how Clix Capital can help, feel free to write to us at hello@clix.capital or call us on 1800-200-9898.

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