How To Check Your Personal Loan Eligibility Instantly

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How To Check Your Personal Loan Eligibility Instantly

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.

How to Check Your Personal Loan Eligibility in 5 Easy Steps

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:

  • Visit the chosen lender’s website or app.
  • Enter your income information.
  • Enter city of residence or PIN code.
  • Choose the type of employer, be it government or private, from the drop-down menu.
  • Enter the desired loan amount in the last tab of the Personal Loan eligibility calculator.

Personal Loan Eligibility Criteria for Salaried Individuals

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 must be at least 21 years old. Their age at the time of the final EMI payment must not exceed 60 years or coincide with their date of retirement, or go beyond that.
  • They must be Indian residents.
  • Borrowers must be employed for a minimum of 1 year with a multinational company (MNC), education institution, government company, public sector undertaking (PSU), public or private limited company, partnership, or proprietorship firm.
  • Their minimum net (in hand) monthly income must be Rs 20,000 or more to be eligible for a personal loan. However, the amount may vary from lender to lender.
  • They must have a credit score of 700 or above to increase their chances of securing a loan.

Borrowers wondering how to check personal loan eligibility must know that these are the points that lenders follow to determine an individual’s eligibility.

Personal Loan Eligibility Criteria for Non-Salaried Individuals

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:

  • Loan applicants must be 21 years old while applying and must not exceed 65 years of age at the time of the final EMI repayment.
  • They must be Indian residents to qualify for the loan.
  • They must be self-employed professionals, such as doctor, engineer, chartered accountant, architect, consultant, freelancer etc. and must be earning a steady income with no breaks between jobs. If they happen to be insurance agents, they must be at least two years old in the profession.

Additional Read: Advantages of Checking Credit Score Regularly

Why Check Personal Loan Eligibility Online

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:

  • You get to know the time taken to process and disburse the loan. Loan applications can be submitted online with a single click. Most lenders follow their own process to disburse loan amounts and verify the borrower’s documents.
  • Borrowers get to find out about any possible restrictions on the end-use of the loan. They get to find out whether the loan comes with a pre-determined use or can also be used to cover events such as weddings or vacations or to pay for courses.
  • They find out about the repayment tenure, which generally starts at 12 months and goes up to 60 months.
  • Borrowers find out about all those documents they need to submit to get approved.
  • Finally, they find out whether they need to pledge any kind of collateral to have the loan approved.

Factors Affecting Personal Loan Eligibility

There are several factors that affect personal loan eligibility. These are given below:

  • Geographic Location: Your residential location plays a crucial role in determining whether or not you qualify for a personal loan.
  • Income: Your personal loan eligibility also depends on their income. The higher your income, the higher the loan amount you will be eligible to lend.
  • Housing Situation: Borrowers residing in their own homes have a greater chance of approval than those living in rented accommodations. A rented house lowers one’s disposable income, invariably lowering one’s repayable capacity.
  • Existing Credit: Lenders are hesitant to approve loans for borrowers who are already repaying a loan. This is another factor considered by lenders when analyzing borrowers’ eligibility for a personal loan.
  • Credit History: A borrower’s credit score and credit history play a huge role in determining their personal loan eligibility. It can have an impact on the interest rate, the repayment tenure, and the loan amount offered by the lender.

Document List to Apply for an Instant Personal Loan

Borrowers must submit certain documents to the lender to proceed with their personal loan application.

  • Proof of Age and Identity: Documents such as passport, Aadhaar card, and Voter ID card are mandatory for instant approval of personal loan.
  • Proof of Residence: A house registration certificate, sales deed, Aadhaar card, and Voter ID card serve as one’s proof of residence.
  • Proof of Income: Form 16, Salary Slips, Bank Statements, and Income Tax Certificate serve as proof of income.
  • Duly filled and self-attested personal loan application form
  • PAN Card
  • Passport-size Photographs

Frequently Asked Questions

  1. How Do I Know If I Qualify for a Personal Loan?

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.

  1. How Do I Know If I Am Pre-Approved for a Personal Loan?

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.

  1. Can I get a pre-approved loan instantly?

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.

  1. Will I Get a Loan If I’m pre-approved?

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 on 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. Oneconsumer Services Private Limited and the author shall not be responsible for any direct/indirect/damages/loss incurred by the reader in making any decision based on the contents and information. Please consult your advisor before making any decision.

-   OneScore , August 17, 2023

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