The need for fulfilling personal loan eligibility in India

In India, inflation is on an all-time rise and so is the cost of living. Thus, there are many people who are unable to take care of financial expenses on their own. Hence, at such times, there are many people who opt to resolve their financial crises by opting for loans. However, many-a-time, these people fall into the traps called as loan sharks and traditional financiers. The reason why we are denoting traditional financiers as traps is because they take advantage of people’s problems and provide them with high-interest rate loans. Also, the new-generation believes in spending a high amount of money on gadgets, trips, etc. and this causes further financial mismanagement. However, now people can make use of personal loans and relieve their financial worries without a second glance. The best thing about these loans provided by banks and FINTECH companies is that they have lower interest rates than the ones provided by loan sharks. However, you need to fulfill the personal loan eligibility stated by these financial institutions to make use of these loans.

But before discussing the eligibility criteria, let us understand the need for these loans. A personal loan is nothing but an unsecured form of a loan that you can make use of, to resolve your financial problems. You can make use of the money from a personal loan for anything and everything- such as purchasing a new gadget, buying a new motorbike or paying off your wedding expenses. The personal loan eligibility criteria given out by banks and NBFCs (non-banking financial companies) are as follows:

• The financial assistance provided by a personal loan is unsecured in nature; thus, you don’t have to submit any form of collateral to the financial institutions. However, the banks and NBFCs (non-banking financial companies) scrutinize your credit score and history- because your credit history reflects your financial awareness. And also, make sure that you have a credit score above 700; to be able to obtain a personal loan. This credit score is given out by CIBIL and is in the range of 300 to 900. Therefore, the only way for you to maintain a good credit score is to repay all of your past and current debts.
• Your financial income is another important personal loan eligibility criterion. The banks and NBFCs (non-banking financial companies) check your financial income to ensure that you will be able to repay the loan amount. Thus, you need to show a stable income source to the financial institutions. The repayment of the personal loans is done in the flexible form of EMIs (equated monthly installments); these installments are calculated on the basis of your principal loan amount, repayment tenure and the interest rates charged by the financial institutions.
• Also, make sure that you have all the required documents with you. This is because you need to submit your identification and salary documents to the financial institution when you apply for a personal loan.

Thus, these were the few personal loan eligibility criteria that you need to fulfill to enjoy the loan services. Good luck and all the best!