When faced with a situation that demands immediate financial respite, an online personal loan is your best go-to option! There are several advantages of applying for a personal loan online. Some of them include:
· Ease of application
· User-friendly website and portals
· Fast processing
· Instant approval
· Greater convenience over the traditional approach
Personal loans are unsecured loans - you do not have to guarantee any collateral against them. This significantly increases the risk on the part of the personal loan providers as the chances of a borrower defaulting on his/her Equated Monthly Payments (EMI) cannot be disregarded. To overcome this risk, banks and Non-Banking Financial Companies (NBFCs) have strict eligibility criteria that need to be fulfilled in order to qualify for a personal loan. Let us discuss some of these eligibility criteria in detail.
Age is an important eligibility criterion for availing a personal loan. The chances of getting a personal loan approved are high when an applicant is young because of his/her longer employment prospects and fewer familial responsibilities. Most young people prefer to opt for a long-term personal loan, where the loan tenure is long but the EMIs are comparatively less.
An elderly person, who is nearing retirement, may find it difficult to get a personal loan approved, because of the absence of a fixed monthly income post retirement. However, if the elderly person can convince the loan provider that he/she is financially competent to repay the personal loan, he/she may become eligible for one.
In India, the minimum age requirement for an applicant to qualify for a personal loan is 21 years, while the maximum age requirement is 60 years. However, based on the respective policies of different personal loan providers, this age bracket may vary slightly. For instance, in order to avail the Bajaj Finserv Personal Loan, an applicant must be within an age group of:
· 23-58 years (for salaried individuals)
· 22-66 years (for self-employed individuals)
In India, CIBIL score is a three-digit value that reflects the ‘credit-worthiness’ of an individual. This score is calculated based on a person’s past credit history. Normally, a CIBIL score of 700 and above is considered as a good CIBIL score. High CIBIL score proves that the individual is diligent in paying his debts and will not default on any EMIs. Therefore, personal loan providers take this CIBIL score into account while determining the eligibility of an applicant for a personal loan. Make sure that there are no late payments on your credit card bills or any defaults on your previous loan EMIs as these factors could significantly hamper your CIBIL score.
Your income determines your capacity for repaying the loan. To avail any personal loan, an applicant must prove that he/she has a steady source of income. The basic income qualifies for a personal loan depending on factors such as:
· Profession: Salaried employees or self-employed
· Length of employment (for salaried individuals)
· Length of business (for self-employed individuals)
For instance, the basic income criteria to avail a Bajaj Finserv Personal Loan are:
· A minimum take-home salary threshold of INR 37,000 (for individuals residing in Tier I cities)
· A minimum take-home salary threshold of INR 27,000 (for individuals residing in Tier II cities)
The length of your employment or your business vintage is taken into consideration by loan providers to determine your personal loan eligibility. Generally, most personal providers dictate that the minimum employment length for a salaried individual must be 2 years, whereas a self-employed individual must have at least 5 years of business experience. However, based on different loan provider policies, these numbers may vary. For instance, to apply for a Bajaj Finserv Personal Loan, the minimum business vintage required for self-employed individuals is just 3 years. Employment history with a frequent job or business change might reflect poorly on an applicant’s part, giving an impression of instability in nature. Try to refrain from giving such negative impressions at the time of applying for a personal loan.
An applicant’s repayment capacity is based on a number of parameters, such as- monthly/annual income, rate of interest on the loan, loan tenure and his/her obligations to any previous loans or debts. After, careful consideration of all these parameters, a loan provider decides whether the applicant is capable of paying the EMIs on time, without defaulting on the loan. If the loan providers find the applicant to be in a poor capacity to repay the loan, they might refuse to grant the personal loan.
If you fulfill the above-mentioned eligibility criteria, getting a personal loan should not be an issue. You can follow these simple steps to avail an instant personal loan online:
1. Compare the rates and offers of all the online personal loan providers. Perform a thorough analysis to determine which personal loan provider best suits your financial requirements
2. Once you have chosen a personal loan provider, check whether you full-fill all their eligibility criteria
3. Applying for an online personal loan requires minimal documentation. Make sure you have copies of important KYC documents for identity proof, residential proof, and income proof
4. After filling all the details and submitting your documents, proceed to apply online for an instant personal loan.
The benefits of taking an online loan triumph the traditional approach of physically visiting a loan provider and submitting your personal loan request. Online personal loans offer much more convenience on account of the minimal documentation and fast processing of your loan request. This saves a lot of time and effort. To know more about availing an instant personal loan online, visit Finserv Markets today!
Finserv Markets, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!