Money is a very important thing in our life. Money can turn our dreams into reality, but on many occasions the problem that we all face is lack of money. But the lack of money can be harmful on many occasions, but one must remember that there are many ways through which the gap between reality and dreams can be bridged. Shortage of money can also be completed by taking advantage of personal loans. There are some criteria that determine your ability to borrow. Every person who needs a personal loan cannot be in a position to get a loan.
Personal loan is quite popular among all types of loans. Personal loans can help anyone to meet the shortage of money, which they can have while buying a house or car, for higher education of their children and even during medical emergency. Customers like personal loans because it is unsecured. You do not have to keep any kind of guarantee in lieu of taking it.
Benefits of taking a personal loan
There is no limit on its use: You can use the money taken for personal loans for any purpose. There is no fixed restriction or limit on its use. You can use it for higher education, wedding expenses, home renovation, medical care or even for partying. There is no limit like other loans available in the market.
No need for equity sharing: If you buy any expensive thing through it, then you do not need to share equity.
No Guarantee required: Personal loan is unsecured in nature. So for this you do not have to keep any guarantor or guarantee.
Fast Approval: Since personal loan is unsecured, the documents seem to be less than other loans. This makes the process faster. Approval and disbursement of loans are speeded up due to fast processing of documents.
Availability of online personal loans: Due to the progress in technology, personal loans are now available online. You can get a personal loan with just a few clicks. The online availability has made the loan processing faster, so that you can get a loan in a few minutes.
The customer will be able to take advantage of these benefits of personal loan only when he is eligible for the loan. Let us tell you how you can always be eligible to take a loan.
Eligibility for taking a personal loan
The ability to give personal loans varies from bank to bank. Some of these common criteria are to repay the applicant’s age, occupation, income and loan.
Income: To get a personal loan, you must have a regular income. The minimum amount of monthly income varies from bank to bank. Also, the amount of income is different for servicemen, own employment and professionals. Which company a person works with also affects his eligibility.
Age: Lenders show more interest in taking loans to young people than older people. This is because the lenders believe that the ability of the youth to repay the loan is better. From the rules of eligibility, you can take a personal loan from 21 to 60 years of age. But this can also be different for every lender.
Credit score: Before the loan application is approved, lenders ask for the applicant’s credit score from CIBIL or other credit bureaus. A credit score of 750 or more indicates that the applicant is quite reliable. Most lenders believe that the customers with higher credit scores have less chance of default. On the other hand, people who have low credit score have a lot of problems in getting a personal loan because lending to people with low credit score can prove to be a risk for lenders. But it is worth checking your credit score from all the three credit bureaus working in India and using the highest one to apply for personal loan.
Do not stain in professional life
Lenders check the credibility of a person by his professional life. Every lender wants a safe deal in loan repayment. If the customer does the job, then the lender checks the employment history of the applicant to do the credibility check. If you have your own employment, then the stability of the business is checked to measure the repayment capacity of the loan.
Income to debt ratio
The lender always wants that the default risk of the loan is minimized. So they look at the ratio of customer to debt. If the customer has any previous debt, then the previous EMI should not be more than 50 percent of the monthly income. If it is more than that, it will be difficult to get a loan.
However, there are many benefits of taking a personal loan and it is also good to remain eligible at all times. While taking a personal loan, the customer should keep several things in mind, which are processing charges and interest rate. It is advisable to take a loan considering your need and ability to repay the loan.