Too Kind Studio
  • Home
  • Education
    • Education

      What Are The Tips To Succeed In Fashion Styling Course?

      Education

      5 Terrific Reasons to Become a Police Officer

      Education

      Why Radiology Continuing Education Is Important

      Education

      What Are the Career Benefits of Getting a Master’s College Degree?

      Education

      A Basic Guide to Starting a Private School

  • Health
    • Health

      Types of Addiction Recovery Programs

      Health

      Why You Should Hire a Lawyer After a Traumatic Brain Injury

      Health

      Overcoming Challenges of Being a Working Nursing Mom

      Health

      How Can You Live a Happy and Healthy Life?

      Health

      How to Receive VA Personal Injury Compensation Benefits

  • Technology
    • Technology

      Importance of Video Surveillance Services to a Business

      Technology

      Picking the Right Acoustic Panels

      Technology

      What Programing Language Should I Learn?

      Technology

      Single Board Computers: Benchmarks to Consider

      Technology

      Reasons why one should hire professionals for AC repairing and maintenance

  • Games
    • Games

      Casinos Near Me With Slot Machines: How To Play Slot Machines

      Games

      How to Play Casino Games Online: A Guide

      Games

      Live Blackjack: How To Play Blackjack

      Games

      5 Important Tips for Betting on Soccer

      Games

      Card Game

  • Softwares
    • Softwares

      How to Manage Stress at Work

      Softwares

      Microsoft Office Specialist Certification: What You Need to Know

      Softwares

      Cost And Features To Develop Clinic Management Software

      Softwares

      What Is PLC Programming? A Tech Guide for Newbies

      Softwares

      Microsoft Teams vs Slack: Which Is Right for Your Office?

  • Travel
    • Travel

      What Is a Timeshare? The Pros and Cons

      Travel

      Why You Should Hire a Photographer While On Vacation

      Travel

      7 Cool Places for Food Lovers to Visit in London

      Travel

      The Complete Guide to Selecting a Cruise for Your Next Vacation

      Travel

      Essential Requirements for Pilot Training

  • Lifestyle
    • Lifestyle

      The Best Ways to Style an Antique Fireplace This Winter

      Lifestyle

      The Best of the Best: Top Things to Do in NYC This…

      Lifestyle

      How to Manage Anxiety

      Lifestyle

      4 Ways to Improve Your Car’s Performance

      Lifestyle

      Fantastic Tips to Lead a Happy Life

  • Food
    • Food

      5 Delicious Food Cuisines Everybody Should Try Atleast Once

      Food

      What Are the Different Types of Ham That People Love to Eat?

      Food

      Brats vs Hot Dogs: What Are the Differences?

      Food

      Holistic Treasures: A Guide to Healthy Sea Moss Benefits

      Food

      What Are the Health Benefits of Cheese?

  • Fashion
  • News

What Are The Tips To Succeed In Fashion Styling Course?

Top 7 Must-See Places in Saudi Arabia

Types of Addiction Recovery Programs

Why Your Business Needs to Hire a Lawyer

How to Choose the Best Divorce Attorney

Why You Should Hire a Lawyer After a Traumatic Brain Injury

5 Signs That You Can Benefit From a Probate Lawyer

Medical Assistants: The Benefits of Becoming a Medical Assistant

Overcoming Challenges of Being a Working Nursing Mom

5 Terrific Reasons to Become a Police Officer

Bussiness

How Is My Eligibility for a Personal Loan Calculated?

by Michael George October 3, 2020
written by Michael George October 3, 2020

 

2020 has been a tough year for most of us, both mentally as well as financially. As the COVID-19 pandemic continues to wreak havoc in the world around us, it is only natural that some of us might be undergoing a cash crunch scenario. If you, too, have been undergoing a cash crunch scenario, and you are considering taking a personal loan, then this article is for you.

In today’s article, we will share with you everything you need to know about how lenders check your eligibility for personal loans in India. Let’s get started.

What Is a Personal Loan?

Before we dive into the technicalities of how lenders check your eligibility for a personal loan, let us quickly understand the meaning of a personal loan.

In simple terms, a personal loan can be understood as a financial instrument wherein you, as the borrower, can avail a certain amount (generally between ₹10,000 to ₹500,000) at a low-interest rate and along with a flexible repayment plan.

Today, getting a personal loan in India has become much easier thanks to the many lenders who specialize in this domain. But despite this, there are some factors that every lender considers before approving your loan application.

How to Get Approved for a Personal Loan in India?

No matter which lender you choose for a personal loan, you will be first categorized on the basis of your employment. You will either be classified as a salaried employee, or you will be classified as a self-employed professional. Depending on which category you arrive at, your eligibility for the loan will be different.

Salaried Professionals

Eligibility criteria for personal loans in India vary depending on the fact that if you are a salaried professional or a self-employed one. If you are a salaried employee, the following factors are taken into consideration while approving your loan application.

  1. Age: For salaried employees in India, the minimum age required to apply for a personal loan is 21 years. Along with this, it is also important to note that some banks and NBFCs have a minimum age barrier of 23 when it comes to applying for a personal loan.
  2. Monthly Income: In India, the monthly income for salaried employees who wish to apply for a personal loan varies between ₹13,500 to ₹18,000 depending on the bank or NBFC you choose as your lender. Along with this, depending on the type of organization you work for, that is either a government organization or a private institution, the minimum monthly income requirement may vary. Generally, it has been observed that the minimum monthly income requirement for government professionals is less as compared to those employed in the private sector.
  3. Total Work Experience: The third factor that is taken into account is your work experience. Most banks prefer to approve personal loans for professionals who have work experience of 2 to 3 years or more. However, this does not mean that a fresher can’t get a personal loan. In case you have just started working, and you need a personal loan, you can still get approved; however, the other factors will be given more priority and will arrive at a higher margin.
  4. Credit Score: Last but not least, when you apply for a personal loan as a salaried employee, your credit score is taken into account by the lender. If you want to get approved for your personal loan quickly, then you need to make sure that your credit score is in the range of 750 to 800, as it indicates that you have high creditworthiness.

Self Employed Professionals

The second category for lenders is self-employed professionals. As I mentioned earlier, the eligibility criteria for personal loans in India vary widely between salaried and self-employed professionals.

If you are a self-employed professional, and you are applying for a personal loan, the following factors are taken into account.

  1. Age: If you are a self-employed professional and you are applying for a personal loan, you need to be 25 and above to get approved. The minimum age to apply as a self-employed professional varies between lenders but is generally in the range of 25 to 30.
  2. Business Stability: You need to be in business for the last 5 years at a minimum to get approved for a personal loan.
  3. Minimum Profit After Tax: As a self-employed professional, your MPAT or minimum profit after tax is given heavy consideration when you apply for a personal loan. The reason behind this being, the amount left with you after tax is the amount you actually earn, and in order to get approved, this amount needs to be ₹2 Lakhs per year and above.
  4. Credit Score: A lot of us might be of the opinion that credit score is given equal weightage by a lender both for a salaried as well as a self-employed professional, but this is only partially accurate. In the case of a self-employed professional, since the income is irregular, the only way lenders have to determine if the borrower is creditworthy or not is through their credit scores. On the other hand, in the case of salaried professionals, the monthly income can be used as a yardstick to determine their creditworthiness. Thus if you are self-employed and you want your personal loan application to get approved, make sure that you have a high credit score across both Experian as well as CIBIL.
  5. Be an Account Holder: If you are a self-employed professional and you are applying at a bank for a personal loan, then it is a prerequisite that you hold an active account with them for at least one year. While this criteria do not apply at most banks and NBFCs, some of the most recognized banks have this policy in place.

Quick Recap

If you want a personal loan in India, make sure:

  1. You have and maintain a high credit score as it will make it easier for lenders to assess your personal loan application and consecutively approve it.
  2. Have a regular income as it displays that you can be trusted to pay back your loan and not orchestrate a default for the lender.
  3. Be 23 years of age if you are salaried and 25 years of age if you are self-employed.
  4. Have continuous work experience of 2 to 3 years if you are a salaried professional and 5 years in business if you are self-employed.

Ending Lines

Getting a personal loan in India of 2020 has become easier than ever before. If you are applying for a personal loan, just make sure that you follow all the pointers and eligibility criteria listed here, and you will be good to go. All the best.

 

Author Bio: Surya Patra is a qualified webmaster by profession and Marathon Runner/Cyclist by passion with more than 6+ years of expertise in the financial domain. Surya is also an entrepreneur, enthusiastic in storytelling, content writing, and digital marketing professional.

 

Loan
0 comment
0
FacebookTwitterPinterestEmail
Michael George

previous post
How to Make Kratom Extract?
next post
Here’s Why Privacy Matters Even With Plugins

Related Posts

Why Your Business Needs to Hire a Lawyer

January 25, 2023

4 Benefits of Undergraduate Research

January 9, 2023

What Makes a Trip on a Private Jet...

January 5, 2023

What is Venture Capital Financing, and What are...

January 5, 2023

The Key Steps to Starting a Construction Business

December 30, 2022

Are Gift Cards In Bulk Worthy Now?

December 29, 2022

A Guide to Choosing Your Next Men’s Designer...

December 23, 2022

Important Business Launch Steps You Might Not Have...

December 7, 2022

Mini Champagne Wedding Favors That Spice Up Celebratory...

December 6, 2022

Importance of Video Surveillance Services to a Business

December 6, 2022

Leave a Comment Cancel Reply

You must be logged in to post a comment.

Posts Slider

What Are The Tips To Succeed In Fashion...

February 3, 2023

Top 7 Must-See Places in Saudi Arabia

February 3, 2023

Types of Addiction Recovery Programs

February 3, 2023

Why Your Business Needs to Hire a Lawyer

January 25, 2023

How to Choose the Best Divorce Attorney

January 25, 2023

Recent Posts

  • What Are The Tips To Succeed In Fashion Styling Course?
  • Top 7 Must-See Places in Saudi Arabia
  • Types of Addiction Recovery Programs
  • Why Your Business Needs to Hire a Lawyer
  • How to Choose the Best Divorce Attorney

Related Posts

  • Why Your Business Needs to Hire a Lawyer

    January 25, 2023
  • 4 Benefits of Undergraduate Research

    January 9, 2023
  • What Makes a Trip on a Private Jet one of a Kind!

    January 5, 2023
  • What is Venture Capital Financing, and What are its Advantages?

    January 5, 2023
  • The Key Steps to Starting a Construction Business

    December 30, 2022

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

Subscribe Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

  • Facebook
  • Twitter
  • Instagram
  • Pinterest
  • Linkedin
  • Tumblr
  • Youtube
  • Github
  • Reddit
  • Privacy Policy
  • Terms & Conditions
  • About
  • Contact

@2020 - 2022 . Too Kind Studio. All Right Reserved.

Too Kind Studio
  • Home
  • Education
    • Education

      What Are The Tips To Succeed In Fashion Styling Course?

      Education

      5 Terrific Reasons to Become a Police Officer

      Education

      Why Radiology Continuing Education Is Important

      Education

      What Are the Career Benefits of Getting a Master’s College Degree?

      Education

      A Basic Guide to Starting a Private School

  • Health
    • Health

      Types of Addiction Recovery Programs

      Health

      Why You Should Hire a Lawyer After a Traumatic Brain Injury

      Health

      Overcoming Challenges of Being a Working Nursing Mom

      Health

      How Can You Live a Happy and Healthy Life?

      Health

      How to Receive VA Personal Injury Compensation Benefits

  • Technology
    • Technology

      Importance of Video Surveillance Services to a Business

      Technology

      Picking the Right Acoustic Panels

      Technology

      What Programing Language Should I Learn?

      Technology

      Single Board Computers: Benchmarks to Consider

      Technology

      Reasons why one should hire professionals for AC repairing and maintenance

  • Games
    • Games

      Casinos Near Me With Slot Machines: How To Play Slot Machines

      Games

      How to Play Casino Games Online: A Guide

      Games

      Live Blackjack: How To Play Blackjack

      Games

      5 Important Tips for Betting on Soccer

      Games

      Card Game

  • Softwares
    • Softwares

      How to Manage Stress at Work

      Softwares

      Microsoft Office Specialist Certification: What You Need to Know

      Softwares

      Cost And Features To Develop Clinic Management Software

      Softwares

      What Is PLC Programming? A Tech Guide for Newbies

      Softwares

      Microsoft Teams vs Slack: Which Is Right for Your Office?

  • Travel
    • Travel

      What Is a Timeshare? The Pros and Cons

      Travel

      Why You Should Hire a Photographer While On Vacation

      Travel

      7 Cool Places for Food Lovers to Visit in London

      Travel

      The Complete Guide to Selecting a Cruise for Your Next Vacation

      Travel

      Essential Requirements for Pilot Training

  • Lifestyle
    • Lifestyle

      The Best Ways to Style an Antique Fireplace This Winter

      Lifestyle

      The Best of the Best: Top Things to Do in NYC This…

      Lifestyle

      How to Manage Anxiety

      Lifestyle

      4 Ways to Improve Your Car’s Performance

      Lifestyle

      Fantastic Tips to Lead a Happy Life

  • Food
    • Food

      5 Delicious Food Cuisines Everybody Should Try Atleast Once

      Food

      What Are the Different Types of Ham That People Love to Eat?

      Food

      Brats vs Hot Dogs: What Are the Differences?

      Food

      Holistic Treasures: A Guide to Healthy Sea Moss Benefits

      Food

      What Are the Health Benefits of Cheese?

  • Fashion
  • News

Porn Online

  • xxx porno
  • videos de sexo anal
  • filme porno