Personal loans have become necessary when you’re facing a temporary financial crisis. The Equated Monthly Instalments (EMI) helps you to pay off your loans at ease without worrying about debts. If you are thinking of applying for a personal loan, you are probablywonderingif you’re eligible or not. Personal loan eligibility differs for each financial institution. But there are some basic criteria, which you need to fulfil to be eligible.
Factors affecting personal loan eligibility
Age: A person, who want to apply for a personal loan should be at least 21 years of age. Similarly, the person should not be more than 60 years of age when the loan matures.
Income: Your income describes your repayment ability. If your income is higher, you are eligible for loans of a higher amount.
Location: Your location is a very important factor in personal loan eligibility. Some cities demand higher income in order to apply while others don’t. Some locations like metro cities have more probability of approving your loan than rural or semi-urban areas.
Housing Situation: The financial institutions need to know if you live in your own house or stay in a rented place. Rented spaces mean that you pay a part of your salary for rent every month and that decreases your disposable income. If you have your own house, you’re more likely to be approved for the loan.
Document Verification: If you’re interested in applying for the loan, you should provide the documents required for the process. A loan is sanctioned to only those who provide original documents that include an application form, photographs, proof of identity, address, income, tax documents and KYC documents.
Credit History: Credit score measures your repayment capabilities and previous loans. If you have a bad credit score, you may lack personal loan eligibility. It is always advisable to have a proper credit score before applying for a personal loan.
Profession: Last but not least, your profession and company also play a major role in determining your eligibility. If you belong to a popular company with a good reputation, then your chances of approval will increase.
How to find out if you’re eligible for personal loans
By checking the above basic criteria, you have an idea regarding your personal loan eligibility. All you have to do now is to list down all the financial institutions, which are suitable for your needs. Check the individual websites of the institutions and match their eligibility criteria with yours. If you do not want the hassle of checking out the websites individually, you can now check your eligibility online with the help of personal loan eligibility calculator. Click on the link here https://upwards.in/personal-loan-eligibility-calculator to calculate your eligibility. In this website, all you need to do is enter the details of your income, workplace, geographical location, profession etc. and wait for the website to show the results. With the help of the calculator, you can also determine the institution which fits your personal loan eligibility criteria.