The word eligibility means being in a state where an individual qualifies or has the right to do or attain something by satisfying certain conditions or a set of standards. When we say that an individual is eligible, we imply that the individual is capable enough and has earned the right by being qualified. A personal loan also has some requirements to confirm the eligibility of an applicant. A personal loan is an unsecured loan given by banks and non-banking financial companies to help individuals financially and help them deals with their urgent personal needs. This loan is given based on certain factors. These factors form the eligibility criteria of an individual.
The eligibility criteria that an individual has to comply with are:
For a personal loan, an individual must be a minimum of 21 years of age and the maximum age limit is 60 years. An individual has to be within this range to avail of the facility of a personal loan.
The lender expects that the individual to have a consistent source of income and an employment history that is as clean as a whistle. For a self-employed entity or individual, the business must be up and running for at least two years.
There is a minimum amount of monthly income required by the lending institution (banks and non-banking financial companies). For instance, HDFC personal loan policy requires the applicants to have a minimum monthly income of Rs. 25,000. This limit can be lower or higher, depending on the lending institution (banks and non-banking financial companies).
The banks and non-banking financial companies are very inflexible when it comes to the credit score of an individual. A credit score is a three-digit summarized version of the credit history of an individual. The range of credit scores is from 30 and goes up to 900. A higher score is liked by all the lending institutions (banks and non-banking financial companies) whereas, a low credit score can be an obstacle for you while applying for a personal loan.
The personal loan approval process is dependent on the eligibility criteria. To improve your chances of getting a personal loan you need to focus on improving your eligibility. To do so, you can consider the following points:
Those with a credit score of 750 and above do not need to worry but the individuals with a low credit score will have to work and improve their credit score. Assessing your credit score from time to time and keeping track of it will help you maintain your credit score. If any disruption is observed then corrective measures should be taken in order to prevent further deterioration of your credit score.
You can add a co-applicant while applying for a personal loan. A co-applicant with a good credits core will help you boost your image and increase your income bracket ultimately making you eligible for a personal loan.
Avoid applying for too many personal loans at a time. When you apply for a personal loan, the institution will contact the agency maintaining your credit report and check in to your history. Every time a financial institution does this, the agency will mention it in your credit report so the next institution that looks into your history will know that you have already applied for a loan. This may negatively affect your credits core as well.
Assess your repayment capacity and borrow a loan amount that you think you will be able to pay back without fail
HDFC personal loan policy also has similar criteria for eligibility and the details of the same are available online where you can apply for an HDFC personal loan as well.
These points should be noted and can be used to enhance your chances of getting a personal loan.
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