Personal Loan Eligibility Plays an Important Role- Find Out How?

Personal loan is an unsecured form of financing for an individual whether you are salaried or self-employed. Personal loan is provided by various financial institutions such as banks and non-banking financial intermediaries. Personal loan can be taken by an individual for any person ranging from buying household goods to holidays or for marriage as well. Personal loan can be availed for as minimum as you want and maximum depends upon your eligibility for personal loan. A personal loan eligibility criterion too differs from person to person. It will be different for a salaried person and self-employed individual.

A personal loan is approved taking lots of factors into account. It is a myth that you will get a loan very easily. Your eligibility for personal loan actually decides if you can get a personal loan from any financial institution or not. Every financial institution approaches a centralized agency known as Credit Information Bureau India Limited which maintains a database of credit score of every individual eligible to loan. It calculates credit score taking your past loan accounts into account as well. One can use personal loan eligibility calculator as well in order to check their personal loan eligibility.

The personal loan eligibility criteria includes an individual’s annual income, age criteria, residence, loan amount, tenure, credit score, current experience etc. in case of a salaried employee while financial institutions also check minimum turnover, stability in business, repayment capacity, past obligations and relationship with a particular financial institution in case of a self-employed individual.

All these factors are kept in mind by the loan provider while approving a loan. Annual income along with other factors determines your loan amount. Factors like repayment capacity and past relationship with the financial institution determine the cost of your loan. This is why eligibility for personal loan is important for an applicant and for the financial institution as well.

Personal loan eligibility calculator helps you determine your repayment structure and also helps you in ascertaining your loan amount as well. An individual can calculate their monthly repayment installment which further helps to maintain cash flow in the future for an individual. So, it becomes very important for a person to have strong eligibility criteria so that you can get best deals with lower costs on your loans.

Policybazaar help you to know different eligibility criteria for different banks and financial institutions. When you know the eligibility criteria of all financial institution then it is easy to apply personal loan online. So, compare criteria and interest rates with us to get best personal loan online.