Eligibility Criteria for Personal Loans | Check your Eligibility Before Applying

We live in a world where you no longer have to stand in long queues to apply for a personal loan. Nowadays, you can easily apply for and get approved for a personal loan in the palm of your hand in a matter of minutes!

Whether it's funding an emergency expense, planning a dream vacation, or upgrading your home, personal loans offer the flexibility you need. However, before you embark on the journey of applying for a personal loan, it's crucial to understand the personal loan eligibility criteria that lenders consider.

Personal Loan Eligibility Criteria: All You Need To Know

Credit Score Matters:
Enhance your CIBIL score for personal loan eligibility criteria. Lenders commonly use the Credit Information Bureau India Limited (CIBIL) score to assess your creditworthiness. The minimum cibil score for personal loan of 750 and above is deemed favourable, reflecting sound financial discipline. Regularly monitoring your credit score and taking proactive measures will help maintain or enhance it.

Employment Type and Reputation:
Looking for personal loan eligibility for salaried person? Salaried individuals enjoy lower interest rates due to their stable income. Hence, government employees and those working in reputed corporations are preferred. In fact, your employer's reputation can impact your personal loan eligibility criteria.

Age Criteria:
The majority of banks and NBFCs provide a personal loan eligibility criteria to people between the ages of 18 and 65 years. Various public-sector banks also offer personal loans to individuals on the basis of their pension income.

Minimum Income Requirements:
Having a higher income indicates that you will be able to repay your loan on time, which further implies that lenders are at a lower risk. Most lenders require salaried professionals to earn at least Rs. 15,000 to qualify. To check personal loan eligibility, review your income to meet lender requirements.

Work/Business Experience:
Personal loan eligibility for salaried person requires a minimum work experience of 1 year. Self-employed individuals and professionals may need a business track record of at least 3 years.

Repayment Capacity:
Lenders assess your capacity to repay based on the EMI/NMI ratio. Ensure that your total credit obligations, including the proposed loan, do not exceed 50–55% of your total income.

What Do You Need For Personal Loan Eligibility Check:

The maximum personal loan amount that a borrower is eligible for is mainly determined by their ability to repay the loan. To conduct a personal loan eligibility check, most lenders use two key methods to assess the maximum amount of personal loan that you are eligible for:

Fixed Income to Obligation Ratio (FOIR) Method: The FOIR method considers the applicant's cumulative monthly payments required to service current obligations. If an applicant's FOIR reaches 50% of his or her take-home pay, the personal loan application will be denied, or the loan sum sanctioned may be less than what you need.

Net Monthly Income Method: Some lenders determine the maximum loan amount by multiplying the applicant's net monthly income (NMI). In such cases, a personal loan can be up to 30 times the applicant's NMI. Unsecured personal loans will not be considered if the loan amount requested exceeds this limit.

Applying for a Personal Loan:

Personal Loan Apply Online:

The application process has become seamless with online platforms.
Submit your application with a single click on the lender's website or app.

CIBIL Score for Personal Loan:

Your chances of approval increase with a good CIBIL score for personal loan.
Some lenders offer instant personal loans even for individuals with low credit scores, albeit at higher interest rates.

Benefits of Personal Loans:

• Quick processing and fast disbursal ensure you can address emergencies promptly.

• No restriction on end-use gives you the freedom to utilize the loan amount as per your needs.

• Minimal documentation, especially for existing customers, streamlines the application process.

Transparent Loan Process:

The personal loan process is transparent, with all fees and charges clearly communicated.
Many lenders provide online account access, enabling borrowers to monitor their loan accounts anytime and anywhere.

Introducing VIVA Money For Personal Loans

A financial platform for individuals seeking quick cash or instant personal loans, especially during unexpected money needs or tight financial situations. Unlike many other loan services, VIVA welcomes people from various backgrounds, whether you're a salaried employee or a business owner.

Using Viva Money is a breeze – the app is user-friendly, and the entire lending process is digital and trouble-free. All you have to do is upload your necessary documents online, and within minutes, your loan application gets approved. Once approved, you can request interest free loans in Karnataka for up to ₹2,00,000.

What sets VIVA apart is that we provide 51 days from loan disbursal to pay the amount back, making it accessible to a broad range of individuals. The beauty of it all is that you don't need to provide any collateral or securities.

Viva Money was introduced with a clear mission: to bring financial inclusion to those underserved in the Indian market. It's a reliable option for anyone in need of instant personal loans in Karnataka, without the usual hassles associated with traditional loan processes.

Download the VIVA Money app today and apply for an instant line of credit today!

Why choose VIVA?

1. Instant Approval: Get online approval in 15 minutes with minimal documentation.
2. Borrow in Parts: Borrow any amount up to your approved credit limit, paying interest only on what you use.
3. Save on Interest: Interest is charged solely on the used amount.
4. Flexible Repayments: Choose EMI options for convenient repayments.
5. One-stop Solution: Easily handle credit, repayments, and fund transfers through a user-friendly mobile app.

Tips for Improving Your Personal Loan Approval Chances:

Check Lender Criteria:
Ensure you meet all the requirements of your chosen lender to avoid rejection based on factors like age or income.

Manage FOIR:
Maintain a Fixed-Obligation-to-Income Ratio (FOIR) of 40% to 50% by paying off liabilities and credit card bills to enhance creditworthiness.

Apply for the Right Amount:
Use a personal loan eligibility calculator to determine the appropriate loan amount based on your income, liabilities, and other factors.

Avoid Multiple Loan Applications:
Applying for multiple loans simultaneously harms your credit score. Stick to one application to prevent a negative impact on your creditworthiness.

Boost Your Credit Score:
Aim for a credit score of 750 or above. Pay EMIs and credit card bills on time, diversify your credit portfolio, and reduce Debt-to-Income (DTI) and credit utilization ratio.

Add Co-Borrowers:
Consider adding a spouse or parent as a co-borrower with a strong credit profile to enhance your repayment capabilities.

Choose Lenders Wisely:
Research and compare lenders to find the best options. Don't settle for the first one you come across; explore various offers in the market.

Declare All Income Sources:
Provide details of all income sources, including additional earnings like rent, to demonstrate your ability to repay and qualify for a higher loan amount.

Opt for Longer Tenure:
Choose a longer loan tenure to break down EMIs into smaller installments, reducing financial burden and increasing approval chances.

Inquire About Loan Prepayment:
Check to see if prepayment options are available. While there may be charges, it can save you from high-interest rates in the long run.

Final Thoughts:

Before you dive into the world of personal loans, taking the time to understand the personal loan eligibility criteria beforehand can significantly increase your chances of a successful loan application. So, go ahead with your personal loan eligibility check, and embark on your financial journey with confidence!