Personal loans come in handy when unforeseen emergencies take place that require immediate financial assistance.

With the plethora of financial institutions and apps offering financial help, it has become extremely convenient today to apply for personal loans. Even tracking the status of your application can be conveniently done with a few clicks. The verification, approval, and disbursal of the loan amount is also instant.

However, all this is possible only when you meet the eligibility criteria to apply for a personal loan.

Read on to explore the common eligibility criteria you need to meet to apply for personal loans.

Personal Loan Eligibility Check Online

To apply for a personal loan, you must meet certain requirements:

Credit Rating

Your creditworthiness is one of the most critical parameters that financial institutions and loan providers assess before they approve your application. Your credit rating can vary between 300-900, and any rating that is above 700 can attract instant approval and a low-interest rate on personal loans.

Your credit rating is a reflection of how you manage your debt and how smartly you maintain your financial health. If you have been making payments wisely, closing outstanding debts, and not missing a deadline, you will likely enjoy a higher credit rating. The higher your credit score, the better deal you will get on your personal loan application.

Age

One of the key aspects that is considered while approving personal loans is your demographics. The location you reside in, your age, your nationality, and your neighbourhood are important factors that can lead to the approval or rejection of a personal loan.

Indian residents that fall in the age bracket of 21-60 years are eligible to apply for personal loans from financial institutions like Fullerton.

Employment Status

It is substantial to have stable employment/business before you apply for a personal loan. You can be salaried or self-employed. For salary, you should have been working with your current employer for a minimum of one year, and if you are self-employed, you should have a total of 2-year of experience. Your monthly income should be at least Rs. 15000 to be eligible for a personal loan.

Loan Amount

Personal loan amounts depend on how much you need. You can take up to Rs. 25 lakhs as a personal loan; however, the amount granted entirely depends on conditions like credit score, sources of income, and your repayment history. Apply only for what you need. You must use the personal loan EMI calculator to assess the loan amount according to the interest charged and estimated monthly EMI.

When you fill in details like interest rate, loan tenure, and your expected loan amount in the calculator, it estimates the personal loan interest deduction, the monthly EMI you ought to pay, and the interest charges levied on your loan. If you want to decrease both, you must lower the loan amount. You can use various combinations till the EMI and interest charge fits your affordability.

Loan Tenure

Top financial institutions like Fullerton allow you to take a personal loan for up to 60 months. 

Use the personal loan EMI calculator to assess the most conducive tenure. If you are looking for low-interest rates, you must go for a short tenure, and if you are looking for lower EMIs, then go for a long loan tenure. The longer your tenure, the stronger your relationship with the financial institution will be.

Outstanding Liabilities

Before applying for a personal loan, clear most of your outstanding dues, loans, or pending balances. This increases your credit score and makes room for your new personal loan and monthly EMI in your monthly budget.

A personal loan of the required amount and tenure will be approved only if the financial institution is confident that you can afford to repay it within the stipulated timeline.

Conclusion

Apply for a personal loan when you are 100% confident that you meet the conditions mentioned above.

Remember that any credit card or loan application rejection can adversely impact your credit rating. Hence, make sure you prudently check your eligibility and make every possible effort to maintain your credit rating, so you get the personal loan of your choice within hours!