Personal loans are the one stop solution for all your financial needs as and when they strike you. Since this financing option is collateral free, lenders do not expect any security against the loan money. This is exactly why these loans have a relatively higher rate of interest as compared to other loans.
Personal loans are extremely secure because they can be applied under all pressing situations with a surety of quick transfer. These become an important part to meet the uncertainties of life. Its availed for different categories of needs higher education, wedding preparations, health complications, etc. As per the Reserve Bank of India, personal loans have increased considerably in the last few years. Personal loan borrowings have increased from Rs.5.89 lakh crores to Rs. 19.33 lakh crore in the year 2018. This is plainly based on the collateral free aspect of personal loans which makes it easy to opt.
How Much Personal Loan Can you Get?
When considering a personal loan, the first question which takes over your mind is how much loan amount can you secure? Besides the maximum limit of offered personal loan, other key factors also play a role for qualification.
The eligibility criteria for both salaried and self-employed individuals are not that different. Let’s highlight the eligibility criteria for a Home Credit Personal Loan.
- The prospective borrower must furnish a proof of identity like PAN Card.
- He/she must have an active netbanking, savings account.
- The borrower must be an Indian citizen and aged between 19-45 years age.
- The minimum income should be at least Rs. 10,000 every month.
- The prospect must carry a valid proof of residence to present in the loan application.
So, you understand that your salary cannot alone get you an instant personal loan. It’s a mix different factors which qualify your loan request. A few other pointers must here be mentioned as given below:
- Approach the lender directly
- Keep your credit score high, above 700 or more
The amount of personal loan to be sanctioned clearly depends on the lender’s discretion. However, for Home Credit loan, you can seek upto Rs.2,00,000. Your shortlisted lender will scrutinize your monthly income and its potential growth before loan approval. Additionally, lenders will keep your loan EMIs to about 50-60% of your monthly income after all deductions, specially to reduce payment defaults.
These are usually the pre-defined criterion for the lenders, however as a needy borrower you must have a good credit score. Any past defaults or skips can impact your eligibility to take a future loan, its tenure & interest rate.
How can you check your eligibility for a Personal Loan?
The eligibility criteria already mentioned will decide whether you will have a loan or not. However, based on other factors, the maximum loan limit will be arrived at. The criteria varies from one lender to another.
Before you apply for a loan, try to work towards polishing your eligibility. Each and every factor like age, repayment capacity is just as important as your salary. Also, make use of an online eligibility calculator to know how much loan amount can you easily qualify and what are the available options in the financial space.