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Eligibility Criteria For Personal Loan

Personal Loan is an easy way to turn the dreams into reality. At times when our account is running in short of cash to fulfill the personal requirements, personal loan is a good option to apply for. Either a dream vacation, child’s higher education, dream wedding, a medical emergency or may be transforming or renovating our living space into a dream world. Personal Loan can help to achieve them all. Its an unsecured advance given by Banks to the eligible borrowers to meet their financial needs. To provide flexibility & convenience is the top most priority by the lenders. Unlike other secured loans like home loans or Loan Against Property it does not require any asset to guarantee the loan.

It can be quite challenging to know that the particular lender who is offering the loan is not only legitimate but also the good one. Before applying for a personal loan one needs to be cautious to understand some basic characteristics that can guide to know that its the best that suits you.

The right match as per the need

It should be availed according to the specific need. This loan can further be divided into different categories like an emergency loan, birthday loan, marriage loan an the list continues. Its always better to address the condition and the requirement to get the right kind of a loan.

Minimal Documentation

This is one of the best benefit of the personal loan. As it does not involve any security of an asset, one do not need to provide countless documents to proceed with this loan.

Fair & Low Interest Rates

Interest is the cost of the money borrowed. It is presented with a fixed rate of interest for the complete life of the loan or adjusted as per the market changing conditions. A good lender can provide you with options to make the loan more favorable to you.

Flexible Loan Terms

A flexible loan can allow to set the due date as per the capacity to pay the loan amount on time.lenders do not allow any prepayment in the initial 6 months or the partial payments. But yes, it can offer to pay by automatic debit facility. This allows to pay the loan on its corresponding time.

No Hidden/ Excessive fees or Charges

At times, lenders ask you to pay the processing fee, application fee, early termination fee, and other charges, both explicit and hidden. On the other hand, there are also few lenders who are honest about their charges and waive other fees like application or processing fees. The main characteristic of a good personal loan should be transparent when it comes to fees and charges. This way, one knows where the money is going.

Its important to know the eligibility for the quick process to avail the funds at the time of financial crisis. With Mudra Home EMI Calculator, calculate your monthly installments before applying for a loan. This can help you to have an estimate of the monthly installments in advance.

Salaried as well as self employed professionals both can avail a Personal Loan. Salaried professionals include CA’s, Salaried doctors, employees from public & private limited companies, Government sector employees from Public sector undertakings. An employer plays an important role in the personal loan application of a salaried professional .Any government official of a state, central or a local body or a department then availing a personal loan would be an easy task for an individual. Even a professional working with a reputed private organization the process will be at ease. Working experience should be at least 12 months with the current employer. For a Self employed borrower business has to be in a growing trend for at least 3 years of income and a clean repayment history.

Certain requirements has to be fulfilled to be eligible for the personal loan. One has to be updated with the eligibility criteria and ready with the documents required for the dreams to come true.

Salaried Individuals

  • Minimum Applicant Age – 21 years
  • Maximum Applicant Age at Loan Maturity – 60 years
  • Minimum Employment Period – 2 years total and 1 year in current organization
  • Minimum Take-Home Income – Rs. 12000 per month
  • Should have a minimum credit score of 700.
  • Clean loan repayment history.

Self-Employed Individuals

  • Minimum Applicant Age – 25 years
  • Maximum Applicant Age at Loan Maturity – 65 years
  • Minimum Business Period – 3 years minimum in current business
  • Minimum Take-Home Income – Rs. 25, 000 per month
  • Should have a minimum credit score of 700.
  • Clean loan repayment history.





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