Personal loans are emergency funds withdrawn from the bank for special personal purposes. These loans are quickly sanctioned with few documents. But similar to other loans, lenders do charge interest on the personal loan amount availed, and that interest can be calculated beforehand by using a personal loan EMI calculator. Also, to find out their loan eligibility, they can easily check it using a personal loan eligibility calculator. These days generally, most people can avail of personal loans with a stable source of income but there are other eligibility standards that a person must have, to be able to apply for a collateral-free personal loan.
Hero fin corp supports all sudden needs for personal loans. It offers separate personal loans for both eligible salaried and self-employed persons. Now let’s take a look at all the eligibility factors below.
- The applicant must be an Indian citizen and should be from the age group of 21 to 58 years.
- Persons working at either salaried jobs or self-employed jobs both have different criteria for applying. A salaried person must have been employed at his current occupation for the previous 6 months. In the case of self-employed persons, they must have 2 years of experience in their working fields.
- A person must have a minimum of 15,000 rupees take-home salary every month.
- A person can only avail a maxim of 5 lac rupees of personal loan at a time.
- An individual can choose a repayment period of the loan of up to 5 years.
5 external factors can influence someone’s eligibility for personal loan criteria.
A debt-to-income ratio shows the lender the percentage of your income that you use to repay your existing debts. It does not matter even if someone’s making a significant amount of money every month. But if most of their income is spent on repaying other debts, then the personal loan may not get sanctioned. An ideal debt-to-income ratio is below 50%.
A credit score is generated depending on the user’s previous credit history. An applicant can increase his or her credit score by simply following the ideal credit repayment strategies recommended by their lending institute. A standard credit score over 700 is good when it comes to availing of personal loans.
As the youth have the potential to pay back in time without any default, but most old people are uncertain of their future. That’s why Hero fin corp offers personal loans to individuals belonging from age 21 to 58.
Whether you are a salaried employee or self-employed, you need to ensure the lender that you have job security. On the other hand, if you are someone who quits jobs and moves on to the next opportunities. Then chances are that your loan application will get rejected due to the nonstability of employment.
An applicant having a high income with fewer liabilities gets marked as a less risky borrower. It is recommended to have at least 15,000 rupees a month income.
Generally, lending institutions favor the younger generations most, when it comes to disbursing personal loans. As the youth have the potential to pay back in time without any default, but most old people are uncertain of their future. That’s why Hero fin corp offers personal loans to individuals belonging from age 21 to 58.
An applicant can take other approaches towards ensuring a better chance of getting quick approval for their loans such as;
- Adding a co-applicant, so that if the primary borrower fails the repayment, the co-applicant can pay it back.
- Having alternative income sources ensure that if you lose your basic job, there’s still a way to pay back the loan.
- Opting for a longer period of repayment helps the borrower to pay small amounts of emis and it also helps the lending institution to assess the borrower’s financial position.
- Not taking multiple loans will make sure that your debt-to-income ratio is low.
Personal loans are emergency funds that anyone satisfying the basic eligibilities can apply. To know more about personal loan eligibility, it is recommended to follow a personal loan eligibility calculator. These eligibility factors may differ from lenders to lenders but having a stable income over the margin and possessing a good credit score is a universal requirement.