Like other types of loans, there are some factors that must meet the requirements in order to get a personal loan. Few of the eligibility criteria for a personal loan are mentioned below:-

Age Boundation:

If your age limit is around 21-35 years then your chances of getting a personal loan are more and at a lower rate of interest. Generally, the age limit of any individual for this loan is 21 to 60 years.

Work Experience and Income

This is an important factor before sanctioning any loan. Require minimum 2 years work experience in case of salaried person. But in self employed professional lenders generally required 5 years work experience. Apart from work experience, main income is also considered in eligibility. For salaried person minimum Rs 25k per month is required. For self-employed professional minimum 5 Lakh annual income is required.

Employer’s Profession

If a person is working in a reputed organization either in private sector or public sector then chances of getting a loan are increased.  Personal Loan can also be given to self-employed professionals like chartered accountants, doctors, architect.

CIBIL Score:

CIBIL Score is important in getting a personal loan. If any person has a good credit score then chances of getting a personal loan would increase and in a good rate of interest.

FAQ

What is the maximum and minimum loan amount I can avail?

The minimum amount which you can avail is 30,000 and the maximum amount will depend on your financials and cibil score.

What will be the tenure for a personal loan ?

Personal loan last between 12- 60 months 

How CIBIL Score plays an important role in loan approval ?

The personal loan is unsecured so it is very important to have a good cibil track . If you have a good cibil score (more than 750) than you have a chance to avail a high amount of loan with a low rate of interest. So it is very important to maintain a good CIBIL score.

Do I need to keep any security / Collateral to bank for personal loan ?

No. You can avail personal loan basis your income.

Do I get tax benefits on personal loan ?

No tax benefits are not applicable on personal loans

What is Pre closure and Part payment ?

Prepayment or pre-closure is an option where you can pay the entire amount of personal loan before the tenure ends. In the case of prepayment, you pay the principal amount first which help you save a lot.

Also, there will be a separate charge for pre closures. Pre-closure charges are around 2%-5% of the outstanding amount. 

Part Payment – If you don’t want to pay the complete amount in one shot you can opt an option for part payment. This amount is less than the complete principal amount.

Is prepayment option is available in case of personal loan ?

Every bank has its own guidelines for prepayment. Most banks will ask you to pay the EMI of 3 or 6 months. Or there will be a lock of one year tenure. So you need to check the prepayment option while applying for a personal loan.

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