Here's a List of Factors That Affect Your Personal Loan Eligibility!
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11 OCTOBER, 2021
However prepared you are for life; there can be moments where you are in a tight spot. A financial crisis can visit you anytime, leaving you worried and troubled. Thankfully, personal loans exist as an easy and simple way to fund your requirements without worrying about your budget. However, to avail a personal loan, you must meet the lender’s eligibility criteria. There are various factors that lenders use to determine your eligibility. Knowing about them can help you enhance the approval chances.
Here are some factors affecting your personal loan eligibility you must know about.
Lenders consider your age while determining your loan eligibility. If you are too young or still a minor, you might not have a stable job or a robust repayment capacity. Similarly, if you are nearing your retirement age, you might face issues in repaying the loan without an income source. Therefore, usually, lenders prefer applicants to be between the ages of 25-50.
You must have a high credit score to be eligible for a personal loan. Your credit score is an indicator of your creditworthiness and repayment capacity. Credit bureaus determine your credit score after scrutinising your number of credit cards, credit utilisation ratio, existing debts and repayment history, etc. It is suggested to have a credit score of at least 700 while applying for a personal loan. Check your credit score and take steps to improve it to enhance your eligibility.
Your income can affect your eligibility, as it is a clear sign of your repayment capacity. As a personal loan is unsecured, lenders want to be sure that your income would suffice the EMI payments. To enhance your personal loan eligibility, you can club your interest income with your salary while applying.
Lenders usually prefer applicants who have a stable job or have some work experience. As you need not furnish any collateral to get a personal loan, you must be financially secure to be eligible. To be eligible for the loan, lenders usually require you to have work experience of 2-3 years in your job or profession. If you are planning to avail a personal loan, do not leave or switch your job. Also, avoid any major change in your work profile.
If you have an existing liability like other loans or credit card debt, it can hamper your repaying capacity. Therefore, lenders inquire about your existing liability while determining your eligibility. If you have loans, they might access your income to see if you can repay an additional loan. Therefore, it would be best to clear off your existing loan to enhance your personal loan eligibility.
Once you meet all the eligibility criteria, availing this loan is a matter of a few steps. All you have to do is apply for a personal loan online with Kotak Mahindra Bank through the online interface. The bank representative will verify your details and disburse the loan amount within a few hours. So, don’t wait. Apply for a personal loan, today.
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