Short-term or medium-term, personal loans are taken in the times of emergency, especially when you need immediate funds to meet any large expenses. It is easier to take a personal loan when compared to any other loan, for instance, a home loan, a car loan, loan against property as it involves minimal documentation and faster processing time. The faster processing time is very beneficial in the times of emergency, which is why a lot of people opt for a personal loan each year.

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.

DISCLAIMER

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.



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