Personal Loans are excellent funding options if you need funds quickly. Borrowers can use a personal loan for any purpose, including a medical emergency, wedding, home renovation, education, or vacation. The interest rates are competitive, making personal loans the best financing solution for funding expensive purchases. Borrowers must meet the eligibility requirements specified by the lender to qualify for a personal loan.
Different lenders have different personal loan eligibility criteria, and interested borrowers can visit their website to check their eligibility criteria. You may also use a Personal Loan eligibility calculator to see if you qualify.
Borrowers wondering how to check personal loan eligibility must first check whether they meet the lender’s eligibility criteria. Once they finalise a lender they wish to approach, they can follow the five steps given below to find out how to check eligibility for a personal loan:
Lenders have different eligibility parameters for salaried individuals and self-employed individuals. Most lenders follow the points mentioned below to check the eligibility criteria for personal loans for salaried individuals:
Borrowers wondering how to check personal loan eligibility must know that these are the points that lenders follow to determine an individual’s eligibility.
Lenders generally set different eligibility criteria for personal loans for non-salaried individuals, such as self-employed applicants. They follow the parameters listed below to determine how to check personal loan eligibility for non-salaried individuals:
Additional Read: Advantages of Checking Credit Score Regularly
There are many reasons why you need to check your personal loan eligibility before you actually apply for one with a lender. Borrowers find out about the rate of interest the lender charges, the necessary documents for submission, the repayment tenure, and any last minute hidden fees.
Here’s why a personal loan eligibility check is an important step in your loan application:
There are several factors that affect personal loan eligibility. These are given below:
Document List to Apply for an Instant Personal Loan
Borrowers must submit certain documents to the lender to proceed with their personal loan application.
The most common requirements lenders look for while evaluating loan applications include the borrower’s credit score and history, income, debt-to-income ratio, collateral (if any), and origination fee.
Loan applicants must check with their banks or lenders, or through their online account, whether there is a pre-approved loan offer for them or not. The bank representatives generally call to advise the applicant in this regard.
Banks and NBFCs offer pre-approved loans to current customers based on their credit rating, current income, and employer profile. These loans provide instant disbursements or take very little time.
Pre-approved loan offers do not guarantee approval of submitted loan applications. Even though a loan request may be “pre-approved”, it can be rejected at any time by the lender if the borrower’s credit score is found to be low or does not meet an eligibility requirement during verification.
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**Disclaimer: The information provided in this webpage does not, and is not intended to, constitute any kind of advice; instead, all the information available here is for general informational purposes only. FPL Technologies Private Limited and the author shall not be responsible for any direct/indirect/damages/loss incurred by the reader for making any decision based on the contents and information. Please consult your advisor before making any decision.
- OneScore , August 17, 2023