Know How Lenders Check Your Online Personal Loan Eligibility
If you are in need of urgent funds, then availing a personal loan can be of great help. It is an unsecured form of credit that that does not demand any collateral. Instant approvals, quick disbursal of money and minimal documentation requirement make it an ideal financial tool.
Before you avail such a loan, you have to know about your online personal loan eligibility as prescribed by a lender. If you satisfy the eligibility criteria, you can enjoy swift approval of your loan application along with various other features and benefits.
Factors which a lender checks for your online personal loan eligibility
Age
This is one primary factor that lenders check while deciding the eligibility criteria. The basic age bracket is from 21 to 60 years. However, they do consider the number of years you have remained unemployed. Based on this, they determine your repayment ability. Your age impacts both the tenor period and rate of interest.
Income & employment status
If you have a stable source of income, then you are considered as a strong contender for personal loans. The lender has confidence in your repayment capacity.
Place of living
Having a regular income as per the city you live in is another factor the lenders evaluate. Lenders set a minimum salary amount based upon the city you live in. If you meet this parameter, then you can apply for a personal loan with affordable rates of interest.
Credit score
A CIBIL score of 750 and above shows that you pay your dues in time. Lenders see your creditworthiness and then determine your eligibility. If you have a score less than 750, then you may have to settle for lower loan amount or higher interest rates to avail a loan.
Your online personal loan eligibility depends upon your debt-to-income ratio(FOIR) as well. If you do not have any existing debt and have a FOIR below 40%, then availing a loan becomes quite easy.
Must Read: How Can You Fit The Personal Loan Eligibility Criteria Set by Financial Institutions?
