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Are you in urgent need of funds? A personal loan can help you meet your requirement. With minimum documentation, quick disbursal of money, flexible repayment options and no collateral requirement, these instant loans have become the most sought-after financial product for people. These aspects of a personal loan make banks and other lenders have different eligibility criteria.
Nevertheless, there are some considerations that almost all financial institutions look at. It is better if you familiarize yourself with a few points that you will have to meet before shopping for a loan. Here are the five essential points that you need to consider to not to have your personal loan application rejected.
When evaluating a personal loan application, your credit score is the most important aspect a bank considers. Having a good payment history will help you have a good to excellent credit score. A three-digit number, a credit or CIBIL score shows your creditworthiness. It is derived using your credit history and ranges from 300 to 900 points. With a score of 750 and above, you have a higher chance of your application getting approved.
By paying your dues like credit card bills and EMIs on time and regulating your credit utilization ratio will give you an excellent credit score.
When it comes to borrowing money, your loyalty with a bank counts. Most banks and financial institutions are comfortable lending money to customers who they know very well. Where you are a long-term customer of a bank, you can apply a personal loan online easily. For instance, IDFC FIRST Bank offers instant approval of loans to its customers with good loan repayment history. With not many documents required for personal loan, they have it approved within a few hours.
The personal loan eligibility requirements differ from one bank to another bank. If you want your application not to get rejected, check with your preferred bank their requirements and your eligibility for the loan. Most banks or financial institutions look at:
If you are salaried, you should be at least 23 years old to apply for a personal loan, and your maximum age should not exceed 60 years or the age of your retirement, whichever comes earlier, at the time of maturity. For business owners or entrepreneurs, the minimum age is 25 years and maximum 65 years at the time of the maturity of the loan.
You should be working in a company or doing business for a minimum of three years. In this case, the reputation of your company is also considered.
Your income, payment history and credit score are crucial to availing a personal loan as well as considering your personal loan eligibility. While this may vary from bank to bank, IDFC FIRST Bank puts YOU FIRST, ensuring that you receive maximum funds based on your annual income. To know more, please visit: Personal Loan - Apply for Instant Personal Loan Online | IDFC FIRST Bank
Your employment history as well as job stability are important personal loan eligibility criterion. Changing a job often is not a good sign as it shows an unstable career.
For any bank or financial institution, your employment history, as well as stability is an important personal loan eligibility criterion. Changing a job often is not a good sign for it shows an unstable career, and most banks hesitate lending to those applicants who have undergone frequent job changes.
While determining your eligibility for a personal loan, banks use the parameter called the fixed obligations to income ratio (FOIR). This is derived by taking your fixed monthly obligations that you have to meet. For the banks to consider a loan application eligible, the FOIR should be somewhere between 40 and 60 percent.
The chances of getting your loan application approved is higher if you take care of the essential points mentioned above. For IDFC FIRST Bank personal loan online, apply now here.
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