Loans are very easy to get nowadays as banks offers a lot of incentives and low interest rates. However, the terms of a loan vary according to the type of loan taken by an individual. The most common types of loans available today are-
Personal Loan
Home Loan
Car Loan
Loans for business ventures and enterprises
Personal loans are basically unsecured loans that do not require any collateral. As the banks do not take any security or collateral for the loan, it becomes very high-risk. A personal loan is given at very high interest rates. Also, this loan can be used for any purpose ranging from travel, medical emergencies or any other personal use. Personal loans are taken by people requiring immediate cash. People opting for personal loans need to fulfill certain eligibility criteria to get the loan amount from the bank. These are:
• Age- A person’s age plays an important role when applying for a personal loan. For a salaried person, the age limit is between 21 to 60 years and for self-employed people, the age limit is between 25 to 65 years.
• Nationality- People applying for personal loans from Indian banks or banking institutions must be Indian citizens.
• Income- In a personal loan, the amount given by the bank will depend on your income. The higher the income, the higher the loan amount that you will get. Also, having higher salary also helps in negotiating a lower interest rate.
• Employment Status- When applying for a personal loan, you need to be an employed individual. For salaried individuals, at least 2 years’ service with your current employer and for self-employed people, there has to be 5 years' annual earnings. However, it is completely the discretion of the bank whether to give you a particular loan amount or not.
• Housing- The eligibility of personal loans also depends on whether you stay in your own house or in a rented place.
• Credit Score- It is one of the most important factors for the bank. Two factors needed for calculating credit score are- 1. repayment of past or current loans and 2. repayment of credit card bills. Having a good credit score positively influences the tenure, loan amount and also interest rates.
• Employer- Having lower interest rates on your personal loan also depend on the organization you are working for. If you are working in a reputed organization, chances are you will get favorable terms for your personal loans
• Maintaining a healthy relationship with the Bank- If you have been a loyal customer of the bank and have a good financial record, you will get a higher loan amount and lower interest rates.
These are some of the personal loan eligibility criteria that you should follow. So before applying for a personal loan, make sure you meet all the requirements.
Personal Loan
Home Loan
Car Loan
Loans for business ventures and enterprises
Personal loans are basically unsecured loans that do not require any collateral. As the banks do not take any security or collateral for the loan, it becomes very high-risk. A personal loan is given at very high interest rates. Also, this loan can be used for any purpose ranging from travel, medical emergencies or any other personal use. Personal loans are taken by people requiring immediate cash. People opting for personal loans need to fulfill certain eligibility criteria to get the loan amount from the bank. These are:
• Age- A person’s age plays an important role when applying for a personal loan. For a salaried person, the age limit is between 21 to 60 years and for self-employed people, the age limit is between 25 to 65 years.
• Nationality- People applying for personal loans from Indian banks or banking institutions must be Indian citizens.
• Income- In a personal loan, the amount given by the bank will depend on your income. The higher the income, the higher the loan amount that you will get. Also, having higher salary also helps in negotiating a lower interest rate.
• Employment Status- When applying for a personal loan, you need to be an employed individual. For salaried individuals, at least 2 years’ service with your current employer and for self-employed people, there has to be 5 years' annual earnings. However, it is completely the discretion of the bank whether to give you a particular loan amount or not.
• Housing- The eligibility of personal loans also depends on whether you stay in your own house or in a rented place.
• Credit Score- It is one of the most important factors for the bank. Two factors needed for calculating credit score are- 1. repayment of past or current loans and 2. repayment of credit card bills. Having a good credit score positively influences the tenure, loan amount and also interest rates.
• Employer- Having lower interest rates on your personal loan also depend on the organization you are working for. If you are working in a reputed organization, chances are you will get favorable terms for your personal loans
• Maintaining a healthy relationship with the Bank- If you have been a loyal customer of the bank and have a good financial record, you will get a higher loan amount and lower interest rates.
These are some of the personal loan eligibility criteria that you should follow. So before applying for a personal loan, make sure you meet all the requirements.
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