Personal Loan Eligibility
A personal loan is the most selling products by the banks nowadays. Besides that, there is some other non-banking financial organization too that provides you a personal loan. You can use this amount of loan for your personal purposes. One more thing to note is that there is no need for any kind of collateral in a personal loan. A personal loan is unsecured. There is no need to pledge anything to the bank. This loan is totally based on your source of income and your credit history. Every bank has its own eligibility criteria to give a personal loan to the applicant. But in general, there are some eligibility criteria that are common in every bank and non-banking financial company. Let us discuss Personal Loan Eligibility in detail.
Age is the basic Personal Loan Eligibility. None of the banking or non-banking organization company gives a loan to any minor. You will only be able to get a personal loan only if your age is more than 21 years. The reason after that is bank wants to be assured that the applicant is capable to return the loan or not. So it is obvious that if your age is less than you would not have enough money to return the loan.
To get a personal loan you need to have some rigid source of income. You need to be salaried or self-employed with proof. It is obvious that if you have some source of income only then you would be able to return the personal loan. For this reason, the bank needs some income proof. In case you are salaried you need to have salary slip of last three months as a proof of income. On the other hand, if you are self-employed you need to have ITR (Income Tax Report) of the last three years. But it should be at least Rs. 2.5 Lakhs per year. Furthermore, the bank needs bank statement of last six months.
- CIBIL Score
CIBIL score is also one important factor that plays an important role in personal loan. You are eligible to get a personal loan only if your CIBIL score is good. If your CIBIL score is less than 620 will have a problem in getting a personal loan. The thing is that your CIBIL score tells a lot of things about your credit history. If your banking is good then your credit score would be good. The purpose of the bank after checking the credit score is to check that how punctual you are towards your banking.
These are the basic criteria that bank checks while giving you a personal loan.
Special Note: An individual must examine the whole EMI amount payable to the lender with the Personal loan EMI calculator.