How to manage for the same?
Your EMI also determines how much amount you can get as Personal Loan from the bank. Your EMIs should be structured in such a way that it should not cross 40-50% of your monthly income. For instance, if your salary is #25,000, make sure your EMIs all together do not cross #12,500.
Though, this amount varies from lenders to lenders. It is dependent upon many factors including the bank’s internal policies as well as the applicant’s financial status.
Eligibility Criterion for Personal Loan Approval:
The basic criterion of eligibility for personal loan for most of the banks and NFBCs are as follows:
• Age Limit: 21-60 years for salaried person and 21-65 for self employed person. In some banks, the minimum age requirement is 23 years.
• Loan Amount: 10-27 times the net monthly income
• Minimum Net Monthly Income:15,000 to get personal loan in rural and semi-rural areas; 20,000 to get personal loan and other urban areas and metro cities.
• Work Experience: a minimum requirement of 3 years in total. Tenure from the current company you are working in should not be less than 6-12 months.
• CIBIL Score: 650+ credit score required. Most of the banks avoid giving loans to those having a low credit score. Make sure your credit score is good.
How to improve your eligibility for Personal Loan?
You can improve your eligibility to avail a low interest personal loan in the following ways:
• Pay off your existing debts and loans to one up your chances to get a low interest personal loan.
• Get rid of EMIs or any other obligations on time to obtain a good credit score. This will help you to get better offers from banks and NFBCs that will provide you personal loans on low interest.
• Put your pre-existing loans to a lower interest rate. This will lower your EMIs and help you get a higher amount.
Personal Loan – Features and benefits:
Busy and productive metropolitan cities are always growing, building and re-building itself. One can get a personal loan are competitively lower interest rates as there is always demand for such loans in urban cities.
One can avail the following features while taking a personal loan:
• Instant loan approval
• Receive money in your bank account within 24 hours
• Minimal documentation
• Flexible loan tenure of 12-60 months for easy repayment
• Flexibility of repayment options
• Get a maximum amount of #25 L and never face liquidity crunch
The Bottom Line:
One can get a personal loan of up to approximately 10 times their net monthly income, i.e., if your salary is #25,000 per month, then you will be able to get a loan of #2.5. Though, as mentioned above, this value could vary according to applicant’s financial history.