Finding information about how to get a personal loan online is simple; discovering the eligibility is not. Personal loans are unsecured loans, and lenders scrutinise the borrower’s profile carefully to avoid the chances of default.
Indian borrowers generally consider factors like the borrower’s credit score, monthly income, age, nature of income, and work experience while determining personal loan eligibility.
The following is a detailed description of each parameter:
- Age – Your age needs to be above 25 (at the time of loan application) and below 60 or the retirement age (at the time of loan maturity).
- Credit Score – A quick look at the personal loan eligibility criteria set by most Indian lenders reveal that they consider 750 as a decent score. Hence, if your credit score is above 750, you will have higher chances of loan approval. Although you may still apply for a personal loan if the score is below 750, the lender may charge the maximum interest rate to minimise the risk.
- Monthly Income – If you are a resident of Mumbai or Delhi, your net monthly income should be above INR 25,000 per month. For borrower’s living in any other Indian city, the minimum income criteria is INR 20,000.
- Nature of Income – If you are a salaried or self-employed professional with a stable income source, your personal loan eligibility will be higher.
- Work Experience – If you are a salaried professional, your total work experience needs to be three years, including one year at the current organisation.
Many banks or lenders provide the personal loan eligibility calculator on their website for free. You may use the calculator to check your personal loan eligibility. Check all terms and conditions before submitting the loan application form.
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