Personal loans are that one can take from Financial institutions to fulfil the urgent requirement. As these loans do not require collateral, they are of the unsecured type. It is the reason why usually the personal loan Interest rates are higher as compared to secured loans. It is easy to get a personal loan provided you meet the eligibility requirements. Although there is no fixed calculation for calculating the maximum loan to get based on the salary, the following points are the basic requirements to keep in mind before going for a personal loan to check your loan eligibility factor:-
- Personal Credit Score
The credit score is the score provided by CIBIL based on your past credit performance. It indicates how well your past loans have been repaid or defaults if any. It is a three-digit figure. A higher score reflects the loan is repaid promptly and hence shows better creditworthiness. Usually, a credit score of 750 and above is considered a good score for sanctioning personal loans. Sometimes lenders also sanction the loan for a lower score below 750 then the sanctioned loan amount could be less than your requirement or could with a higher interest rate.
- In hand monthly income
The monthly salary of the borrower is one of the main deciding factors for personal loan eligibility. The higher the salary higher is the loan amount. The lenders check the net salary or the take-home salary to know if the EMI payments can be easily handled by the borrower. The amount of loan approved will be at the will of the lender. Most banks and other lenders offer loans up to 25 lakhs to individuals. The borrowers are usually approved loan amount of 30 times their monthly salary. The EMI’s are between 45 to 60% of your monthly salary.
- Other loans or EMI’s.
Besides monthly salary, any other loans taken by the borrower is also considered. Although the individual’s salary could be high, if there are already too many EMI’s the individual has been paying, the lender would not be too keen to sanction the personal loan since it is difficult to accommodate new EMI’s. Additionally, before sanctioning the loan, the lender would also check the applicant’s age, if the individual gets salary by cash or cheque, if received in the bank, the bank statements or salary slips, the Income-tax returns etc.
- Documents required for a personal loan could be any one of the following in each category:-
- These are personal identity proof like Aadhar card, Pan Card, driving licence, Passport, Voter ID card etc.
- Address proof like Aadhar card, ration card, Utility bills, Passport, Voter ID Card etc.
- Income proof like salary slips for 3to 6 months, bank statements and Income tax returns of last 2-3 years.
- Know how much loan amount one can get based on the Online Personal Loan EMI calculators. It is an online step by step process mentioned below.
- Eligibility check – By providing the age, address, Company name, salary etc. you can know the eligibility in a few minutes.
- Selection of plan-One has various options to choose from the given plans along with their corresponding repayment options.
- Documentation-The individual needs to upload the required documents
- Loan sanction-The amount gets sanctioned and disbursed within no time.
Higher the credit score and the monthly salary, higher would be the loan amount sanctioned. Important advantage is the quick sanctioning process without hassles and by maintaining the transparency is what Mudrapay offers.