Before you avail a personal loan, you must check if your eligibility criteria.
How do I check my eligibility criteria?You are eligible for a personal loan -
- If your CIBIL score is more than 700.
- If your credit history is intact.
- If your monthly income is higher than INR 15000 (for salaried employees)
- If you have a stable monthly income (for self-employed individuals)
- If your business is stable and has been in existence for a minimum of 5 years (for self-employed individuals)
- If you have been employed for at least 2-3 years.
- If you are above the age of 21 (for salaried professionals)
- If you are above the age of 25 (for the self-employed)
How do you qualify for a personal loan?Here's how you qualify to apply for a personal loan -
1. Ensure you have a good credit history:Pay your EMIs and dues on time and maintain a good track record of your credit. One missed EMI or due can have a negative impact on your credit score which may hamper your chances to qualify for a personal loan.
2. Show you have a stable income:Banks and NBFCs judge the applicant's capacity to repay the loan by assessing his/her income statement. If you have a stable monthly income, your chances to qualify for a personal loan are higher.
3. Pay down your debt:Your debt-to-income ratio is one of the key factors that affects your credit score. Try and pay down your debt as soon as possible. This will help boost your score and make you a qualified candidate for a personal loan.
4. Submit a joint application:Find a credit-worthy co-applicant and apply for a personal loan with him/her. It could be your parents, siblings or your spouse. If the co-signer/co-applicant has a good credit score and stable income, your chances of getting a loan will increase drastically.
Learn more about your Personal Loan Eligibility here.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
Disadvantages of Early Retirement - What Happens When You're Not Working?
Early retirement seems to be good, many people enjoy life without working especially with extra earnings. But they are not aware about the cons. Lets explore the disadvantages of retiring early to save your retirement life.
5 Benefits of Health Insurance that Makes it a Must Have Cover
Here are the 5 benefits of health insurance that makes it a must to cover
When Should You Withdraw Money from a Mutual Fund?
In case of a sudden change in fund strategy or an underperformance scheme for more than 3-4 years, it makes sense to withdraw money.
How To Apply For Personal Loan
Applying for a personal loan has become extremely easy these days. With the increase in applicants, banks and other financial institutions have made the process very simple.