Eligibility Criteria for Taking Personal Loans

Irrespective of the reason, while availing a loan, meeting the basic eligibility criteria is one of the essential things to do. If you don’t match the set standards by the lender, your application can get rejected right away. So, if you are thinking to get a personal loan, here are the eligibility criteria that you must keep in mind.

Be it buying that expensive gadget or purchasing the most luxurious possible car; several such dreams were simply out of the reach of a middle-class person a few years back. However, if you talk about the present scenario, things have changed drastically. Today, taking a loan is not that tough of a procedure.  Thanks to the loan that one can get for personal uses, it has become easier today to fulfil all the dreams possible.

So, if you are thinking to avail this specific loan, here are the eligibility criteria that you must keep in mind before moving ahead.

  1. Salaried Individual: Generally, a personal loan is targeted towards those who are employed with a reliable income source. While self-employed individuals can also avail this kind of loan, most lenders usually prefer salaried individuals. If you are one, you can easily approach a lender, and the procedure can be done within minutes. However, make sure that your income matches or is over and above the minimum income criterion set by the lender.
  2. Age Criteria: There are always restrictions and limitations when it comes to the age limit. If you are thinking to take this loan, you must be anywhere between 25 to 60 years of age. If below or above, you may not match the eligibility criteria for availing this loan.
  3. Minimum Time Spent in the Current Organization: Not just your profession and income but the minimum time spent in the current organization gets counted as well when lenders consider your application. Lenders want to be sure that you have a stable job. To establish this, they usually ask you for salary records of the last six months or more.
  4. Total Work Experience: Your total work experience is also taken into consideration while processing your application. This is to establish that you have a stable source of income and some financial backing to pay off the loan. Lenders usually ask you to submit last 2-3 years of ITR to ascertain this. Thus, you should have total work experience of 2-3 years to ensure you get the loan. So, those who have just got their first jobs and are looking for personal loans, the process might be next to impossible or extremely difficult.
  5. Your CIBIL Score:Last but not least is your Credit score. This plays a crucial score not just in helping you qualify for the loan but also get the best deal.

To Conclude

When it comes to talking about the eligibility criteria, the terms and conditions might vary from the lender to lender. However, in general, these factors mentioned above are the essential ones. So, if you think that you meet these requirements and wish to take a loan for a personal cause, you can apply today.

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Reed Hamilton

Mason Reed Hamilton: Mason, a political analyst, provides insights on U.S. politics, election coverage, and policy analysis.