A Personal Loan offers the dual benefit of quick fund access and zero collateral requirements. They have recently emerged as an excellent way to finance big-ticket expenses that would have been challenging with a regular pay cheque. Considering the convenience and financial backup these loans provide, many people opt for them for their urgent or planned expenses. However, one question that always pops up is: how much personal loan can I get in India? Well, that largely depends on the finance provider’s Personal Loan eligibility criteria and the applicant’s financial health.
Factors Affecting Personal Loan Eligibility
Finance companies look at several factors while evaluating an applicant’s eligible loan amount. Essential components of Personal Loan eligibility criteria include:
- Age: The applicants should be between 21 years and 58 years old to qualify for a Personal Loan.
- Income: An applicant’s repayment capacity largely depends on their monthly income. A higher income makes an individual eligible for a bigger loan. You can qualify for a Personal Loan with a minimum salary of ₹20,000 per month.
- Employment: The applicant should have a minimum work experience of at least an year, with six months in the current organisation.
- Credit Rating: The credit score is based on an individual’s past credit behaviour and repayment history. An experian Credit Score of 630 is good enough to avail a Personal Loan.
Tips to Get a Loan Amount In One Go
Based on the factors affecting Personal Loan eligibility criteria, here are a few intelligent ways to get the maximum loan amount:
- Use a loan EMI calculator to check the amount you can get based on your income and current liabilities. Before applying for a loan, make sure to apply for the right amount according to the repayment capacity.
- Huge amount of pending debt reduces an individual’s creditworthiness, diminishing their loan eligibility and increasing the interest rate. Therefore, always maintain a debt of less than 50% of your income to get an ample loan amount at low Personal Loan rates in India.
- When a loan seeker needs emergency funds, they may apply for multiple loans, hoping to get approval from a few. However, this is not a wise thing to do, as each loan application pulls a hard enquiry that may reduce the credit rating eventually.
- Check your preferred financer’s personal loan eligibility criteria to avoid rejection for a trivial reason like income or age.
Financial emergencies can knock on your doors at any time without any warning. It could be a medical emergency, urgent home repair, a last-minute wedding expense, or anything else. Whatever the goal, with a bouquet of easy Personal Loans available in India, check the lending institution’s Personal Loan eligibility criteria to find a loan plan specifically designed for your purpose and repayment capacity.