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Avail Instant Personal Loans ✓ Loan up to 50 Lakhs ✓ Quick Disbursal ✓ Minimum Documentation!

Before you apply for a personal loan from Muthoot Finance through Bajaj MARKETS, you will have to check whether you meet the eligibility criteria that has been laid down by the company. Muthoot Finance expects you to earn a certain amount of income every month, have a particular credit score and be of a certain age as well. Read on to know more about the Muthoot Finance personal loan eligibility criteria.

Muthoot Finance Personal Loan Eligibility Criteria

Age

23-59 years

Income criteria

Minimum ₹15,000 a month. You must either be employed in a public sector company or a private sector firm of repute.

 

If you live in a metropolitan city, you must earn a monthly income within the range of ₹20,000-₹30,000 to be eligible.

 

If you live in a non-metropolitan city, you must earn an income of ₹15,000-₹25,000 a month.

 

CIBIL Score

750 or above

 

Factors Affecting Muthoot Finance Personal Loan Eligibility

Some of the factors that will affect your Muthoot Finance personal loan eligibility are as follows:

  • Age: First and foremost, you must be between 23-59 years of age to get a Muthoot Finance personal loan since this sufficiently covers a large chunk of the working population that may need Personal Loans for various purposes. If you are on the younger end of this spectrum, you are more likely to be eligible for a higher loan amount than the ones who are at a more advanced stage in life. This particular criterion has been put in place to ensure that you as a borrower have enough time to pay off the loan. If you are close to the lower end of the spectrum of the specified age bracket, you will have the luxury to opt for a longer tenor over which you can make small monthly payments to repay the loan fully. If you are an older individual, you may not have the same kind of luxury, which is why you may only be able to get a smaller amount as a personal loan in comparison.

  • Income and FOIR: Your monthly income also is taken into consideration by the lender while deciding on your interest rate. If you are earning a figure that is on the lower end of the specified income criteria, you may be charged a higher interest rate. If your monthly income comes close to the figure that is on the upper end, you may be able to get your Muthoot Finance personal loan at a lower interest rate. Additionally, your Fixed obligation to income ratio (FOIR), or debt-to-income ratio, is also taken into consideration. FOIR is essentially the percentage of your monthly income that you are utilising to pay off your existing debt obligations. Once the lenders have determined your FOIR, they will take that into account to determine your repayment capability. As personal loans are not secured by collaterals, FOIR becomes an important determinant of your eligibility. Hence, it is important for you to keep your FOIR in check to qualify for a Muthoot Finance Personal Loan.

  • CIBIL Score: Your CIBIL score is basically a three-digit-long figure which stays between 300-900 and is an indication of your loan repayment capability. The higher your CIBIL score is, the better are your chances of getting a personal loan. The lender will also look into your CIBIL score since you are not required to offer any collateral to get a personal loan. Ideally, Muthoot Finance will need you to have a CIBIL score of 750 or above to consider giving you a personal loan. If you have a CIBIL score within the range of 650-749, you can still get a personal loan, but you may get it at a higher interest rate or unfavourable repayment terms. But, if your CIBIL score is below 650, the lender may simply reject your personal loan application.

Note that there are a handful of other factors that are taken into account while considering you for a personal loan. Those factors are your job stability and experience. The industry you are working in also has a bearing on your eligibility for a Personal Loan.

How to Improve Your Chances of Getting a Muthoot Finance Personal Loan?

The ways in which you can enhance your odds of getting a Muthoot Finance Personal Loan are as follows:

Improve your credit score: The higher is your credit score, the better are your chances of getting a Muthoot Finance personal loan. If you have a CIBIL score of 750 or more, it will give the lender an impression that you are a creditworthy individual who can repay the loan as per the agreed upon payment terms. A credit score of 750 or above can also help you get a Muthoot Finance personal loan at a lower interest rate. If your CIBIL score is not on par, consider improving it by making timely loan EMI and credit card bill payments, if any. If you have extra funds in your account, consider prepaying your loan if possible.

Get a co-applicant on board: If you and your working spouse jointly apply for a personal loan, you can enhance your chances of getting a Muthoot Finance personal loan. Your chances of getting the loan automatically goes up as the income of two earning applicants will give the lender a sense of security as far as the repayment goes. Alternatively, you can also get a co-guarantor on board.

Boost your debt-to-income ratio: Another way of standing a better chance of getting a personal loan from Muthoot Finance is increasing your income and paying off your other obligations in order to reduce your overall debt. If you manage to get your debt-to-income ratio to anywhere around 30-40%, the lender will think of it as a sign of responsible debt-related behaviour, thereby increasing your chances of getting a Muthoot Finance personal loan.

Frequently Asked Questions

✔️What are the eligibility criteria to avail a Muthoot Personal Loan?

Muthoot Finance considers a variety of factors to determine an applicant’s eligibility for a Personal Loan. These include their income, age, FOIR, CIBIL score and housing situation.

✔️What should be my income to secure a Personal Loan from Muthoot?

Your minimum net monthly income must be between ₹20,000 to ₹30,000 per month (subject to the employer), if you live in a metro city and between ₹15,000 to ₹25,000 per month, if you live in a non-metro city.

✔️What is the maximum amount of money an applicant can get as a Personal Loan?

Muthoot Finance offers applicants up to ₹10 Lakhs as Personal Loan.

✔️Will CIBIL Score affect my Personal Loan from Muthoot?

Yes. Your CIBIL score, which is a reflection of your prior credit rating, will affect your eligibility for a loan.

✔️Do I need to have a guarantor to apply for a Personal Loan from Muthoot?

Since Muthoot Finance Personal Loan is an unsecured loan, you do not need a guarantor.