Personal Loans are unsecured financial products that you can flexibly use to pay for diverse expenses, including weddings, travel, education, home renovation, or medical emergencies. It allows you to use the sanctioned amount for valid reasons to meet your financial obligations. You get instant access to funds without collateral. It is one of the preferred Loan products to deal with instant cash needs.
Eligibility criteria
A Personal Loan for self-employed is collateral-free that you can easily avail yourself of by meeting simple eligibility conditions. Must be between 18 and 60 years with a monthly income of at least Rs. 15,000. You should have an employment history with your current organisation and a total work experience of 12 months in the current field.
Factors considered
What factors lenders consider while approving a Personal Loan for salaried employee differs from each other. It is essential to understand the minimum eligibility requirements and meet them for swift approval. Here are the factors they consider:
Age
Most lenders have an age limit for individuals for approving their Loan applications. Ensure that you are within that age limit before applying for the Loan.
Minimum income
To ensure timely payment of Loan EMIs on time, lenders want to check how much you earn every month. They check your bank statements, salary slips, IT returns, and other documents to assess your income and repayment capacity. Utilise the EMI calculator to calculate the approximate amount to pay towards instalments.
Credit score
Whenever you apply for a Loan from the banking app, the bank checks your credit score to see how you handle Loan and credit card repayments. Credit bureaus calculate this score, and it ranges between 300 and 900. Your score should be at least 750 and above for approval. The higher it is, the better are the options.
Profession
Lenders usually prefer salaried individuals working in private, government, or multi-national companies with a fixed salary. It increases Personal Loan eligibility and ensures job stability.
Work experience
Many lenders specify that their salaried borrowers should have work experience of a minimum number of years. It is another method of ensuring job stability.
Tips to improve eligibility
Pay the Personal Loan interest rates and instalments on time to the lender. It improves your credit score and boosts the chances of approval. Reduce existing debts to decrease the burden of outstanding Loans. Keep the credit utilisation less than 30% for responsible financial behaviour.
You can apply for Loans online for varied purposes hassle-free and flexibly. Check your eligibility using online tools and researching banking websites for the best offers and schemes.