Importance of Eligibility Criteria in Personal Loans

Personal loan is an unsecured form of loan which extends line of credit to an individual without any collateral security and can be availed for any purpose. A personal loan can be taken by an individual can be used for any purpose as banks and other lenders are not interested in knowing and verifying usage of money. An individual can buy their house, use the money for wedding, for holiday purpose and to buy consumer durable products or to fulfill any desire.

The amount of loans depends on an individual’s eligibility for personal loan which vary from an individual to individual. The eligibility for personal loan is differently evaluated for a salaried professional while there are different criteria for evaluating eligibility for personal loan for a self-employed person.The main and distinctive feature of personal loan is the turnaround time which is very less in fact very few days. A personal loan can be applied by anyone as it is provided without any security and through simple and quick documentation.

Any range of amount can be availed which actually depends on number of factors such as eligibility for personal loans. An individual can check their eligibility online with the help of various insurance aggregators. Insurance aggregators such as policybazaar.com provide multiple calculators and with the usage of personal loans calculator, an individual can check their eligibility and thus apply for a loan accordingly. Personal loans calculator helps an individual in their usage of the loan as eligible amount can be pre-determined.

The basic eligibility criteria followed by the banks include annual income of the applicant which is checkpoint and determines the amount of loan that can be provided to an individual. The annual income also acts as leverage as with high income, you can negotiate loan terms and can get loan at very attractive interest rates. The other criteria followed by the banks are the age limit. In India, minimum age for application of a personal loan is 21 years.

There are other evaluation factors such as work experience, qualifications of the applicant and profession which plays crucial role in eligibility for personal loan. For some lenders, the city you live in and the company you work for are also deciding factors. Credit score is the other important eligibility check point verified by banks and other financial institutions. Outstanding credit liability is the other main factor which helps lenders in ascertaining eligibility criteria for an individual.