Why you should check your personal loan eligibility criteria in India?

The cost of living in India has greatly increased in the last few years; thus, it has become highly difficult for the middle-class Indian population to manage their finances properly. Further, at such times, if there is a medical emergency, it causes an extremely stressful situation.

At such times, we are only left with a few options of either losing our face by borrowing money from friends and family or opting for high-interest financial assistance via traditional financiers. However, thanks to the personal loan online apply feature, we can easily apply for instant loans with attractive interest rates from the comfort of our home or office.

Further, these online personal loans are available 24/7; thus, we can borrow capital at our own convenience without exhausting ourselves by standing in long queues in front of banks and NBFCs (Non-Banking Financial Companies). Other than that, when we personal loan online apply, we also get the benefit of making flexible repayments over a set period. However, to reduce the risks of borrowers defaulting on their repayments, the new-age banks and NBFCs (Non-Banking Financial Companies) have set personal loan eligibility criteria that you must meet to be able to borrow from them. Although, these eligibility criteria are different for every financial institution; however, a few common ones are:

1. Credit history

Your repayment history is one of the most important factors that the new-age banks and NBFCs (Non-Banking Financial Companies) scrutinize before sanctioning your personal loan application. Thus, you must ensure that you have repaid all your previous and current instalments on time, as it will not only help you fulfil personal loan eligibility but will also lower your instant loan interest rates in India.

2. Credit score

CIBIL is one of the leading credit rating bureaus in India providing credit scores; its range is between 300 and 900. Further, the higher your credit score, the better your chances of getting a personal loan. After all, the new-age banks and NBFCs (Non-Banking Financial Companies) in India check your credit score to determine whether you are financially responsible to repay your instalments on time.

3. Your source of income

Your income source is yet another personal loan eligibility criterion that you have to fulfil to be able to borrow financial assistance from banks and NBFCs (Non-Banking Financial Companies). After all, you need to earn a good sum to be able to repay your loan amount in a given time. Thus, having a source of income greatly helps you qualify for an instant loan amount. Further, if you have an alternate source of income in the form of rent from your second property, it will greatly increase your chances of getting an instant loan in India.

4. Your age and documentation

Before your personal loan online apply in India, ensure that you check that particular financial institution’s age bracket. Although, every bank and NBFCs (Non-Banking Financial Companies) age bracket is different from one another; however, the average age of the applicant is around 21 to 65 years.

I specialize in writing finance blog; Particularly, topics related to personal finance, loan, insurance policy and financial management.