Soon after deciding to avail a personal loan, what do you think is the next thing you need to keep in mind? Well, any guesses? It is none other than the eligibility criteria. Yes, your personal loan eligibility plays a crucial role here that affects your overall loan journey.
Thus, today, in this article,we are going to talk about the eligibility and factors affecting the same. Yes, there are a plenty of factors that give you a hassle-free loan process. So, without wasting any time further, let’s just give you a sneak peek about these factors in the article below:
Factors Affecting Personal Loan Eligibility
Monthly Income: Your monthly income is one of the prime factors that determine your eligibility. If an applicant earns a handsome income, it would be easy for him/her to repay the loan without any default. The higher income you have, the better chances you have to get the attractive interest rate and maximum loan amount.
Age: Talking about the age criteria, it may differ from lender to lender. Usually, individuals aged between 21 and 58 years are more likely to get the credit facility. However, one thing that needs to be mentioned here is the fact that the younger you have, the more years you have to repay the personal loan online. This is the reason why lenders usually prefer offering the credit to the younger applicants.
Monthly Expenses: Your monthly expenses also play a crucial role in deciding the rates and loan amount. How much money you have spent on your monthly expenses is also an important factor for evaluation. Your spending pattern is linked to your repayment capacity which shows that whether you can easily manage to repay your loan or not.
Credit Score: Your three-digit numeric summary is also a vital factor here that decides your eligibility. If an applicant is having a good credit history along with a nice repayment record, it automatically increases his creditworthiness. On maintaining a good score, an applicant can get the maximum loan amount, attractive interest rate, flexible tenure options, etc. A good credit score is definitely a gateway that helps you grab the best personal loans deal. That is why, it is always on the radar of not only on the lenders but applicants as well.
Relationship with Lender: If you are someone who has maintained the good terms with your existing lender, it would be easy for you to negotiate for the better deal. Maintaining the good terms with a bank goes a long way in getting the best deal that can make you enjoy the lowest personal loan interest rates so that your repayment can easily be reduced.
EMI: Your equated monthly installments are something that can directly impact your overall loan journey. Make sure that your monthly installments should be pocket-friendly so that you can easily repay your loan. And, for that, you can use a personal loan EMI calculator that lets you know whether your EMIs are going to be affordable or not.
So, hope you keep the above points in mind while going for your next PL journey!