As per a February 2021 report, lending from fintech companies witnessed a boosted growth with remarkably 87% contributions to active loans from consumer and personal lending.
· The same report also indicates an outstanding portfolio value increase of 38% Y-O-Y, with a reasonable contribution from personal loans.
One of the critical reasons why personal loans have caught up in the consumer borrowing trend is their easy eligibility requirements, among other factors. Nevertheless, one must check personal loan eligibility requirements before applying for this credit facility to ensure improved chances of approval.
Along with income and professional eligibility, one of the essential considerations also includes checking your eligibility for the maximum loan amount. Here’s a detailed look into how to check personal loan eligibility for credit suitability.
The process to check your eligibility for a personal loan
Before getting into the details regarding the process to check your loan eligibility, take a quick look at the standard requirements individuals need to meet for personal loan approval.
– They must age between 23 and 55 years.
– Must be employed with either a company either in the private or public sector or an MNC.
– He/she must also be a residing citizen of India.
– The credit score must not be less than 750.
These requirements are a must to meet irrespective of the type of personal loan applied for, such as wedding loans, education loans, travel loans, etc.
Now, you would need to keep upright the following details when proceeding to check personal loan eligibility.
– Net monthly income.
– Fixed expenses made monthly.
– Date of birth.
– City of residence.
Once ready, proceed with the following steps to check personal loan eligibility.
Step 1: Go to a lender’s website hosting the eligibility calculator.
Step 2: Navigate to the calculator page.
Step 3: Proceed to fill in the required details, including your date of birth, city, monthly income, and expenses.
Step 4: Once all the details are entered, the maximum loan amount you are eligible for will be displayed.
Accordingly, you can apply for a suitable loan amount to fulfil your diverse funding needs. The following are a few ways a personal loan can help you meet your financial needs.
– Personal loan for higher education.
– Medical emergency.
– Home renovation.
Note that it comes as an end-use restriction-free credit and can be assigned to multiple funding needs at a time as well, including or excluding these instances.
Eligibility for a personal loan is also capped by the maximum loan value a lender provides. To increase your eligibility for the advance, it is thus essential to select a loan provider offering a credit of high quantum.
For example, Bajaj Finserv offers up to Rs.25 lakh as a collateral-free personal loan to help individuals fulfil their big-ticket financing needs with ease. The lender also extends other user-friendly features, including an extended tenor of up to 60 months, flexible repayment options, online account management, etc.
Customers can also avail of pre-approved offers from the lender for hassle-free and quick loan processing. These offers are available on a range of financial products, including personal loans, business loans, credit cards, etc. You can check your pre-approved offer only with your name and contact details.
Individuals must also check out for ways to improve their eligibility with a few smart tips to take out a personal loan in place, such as –
1. Maintaining a debt-to-income ratio of not more than 50% with a credit utilisation ratio under 30%.
2. Applying for a lower amount than the maximum loan eligibility.
3. Applying with a co-applicant for improved income and creditworthiness eligibility.
With these things in mind, you can proceed to apply for a personal loan with your selected lender. Make sure to build a reliable credit history over time with disciplined borrowing, payments, and repayments for easy approval of the advance at minimum eligibility.