Chennai- the capital of Tamil Nadu is a place where you can find numerous financial institutions and banks that has made it easy for people to seek a personal loan for meeting their financial needs in case of emergency. Do you reside in Chennai and are planning to apply for a personal loan? Are you aware of the Personal Loan Eligibility criteria you need to fulfill to qualify for a personal loan? A personal loan is not granted to everyone who knocks at the doors of a lender company.
Certain standards need to be met by the borrower to earn the trust of the lender that they are capable of repaying the loan. Only then a personal loan is approved. Want to know what are the primary factors that influence a personal loan approval? Here in this guide, we are going to discuss a few essential parameters that stand to be mandatory for determining the personal loan eligibility of a loan applicant in Chennai:
Your credit score speaks for you in volume to determine your personal loan eligibility. It helps in determining whether you are eligible for a personal loan in Chennai or not. The credit score is no less than a financial history of a loan applicant because it pens down the borrowing and repayment history of the person. If the credit score is high, then the applicant can quickly get a thumbs up for personal loan approval.
Generally, people with a credit score above 750 do not face any issues getting personal loan approval. But if the credit score is less than the 750 mark, the chances of loan approval become quite slim. And, even when you get a loan with a credit score lower than 750, the interest rate levied on your loan amount is prone to be on the higher side.
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The applicant’s income also stands to be a critical parameter in determining personal loan eligibility. It is because the higher the applicant’s income, the higher the likelihood of the applicant to pay back the loan amount.
When a person takes a personal loan in Chennai, they do not just have to pay the EMI, but they also have to manage other expenses such as house rent, domestic inventories, food, rent, bills, etc. This can be only possible if the person earns an amount so that he/she is able to cater to all the expenses. Hence the lender would want to ensure that the applicant earns enough to repay the loan on a timely basis.
Just like your income, the lender also takes your job stability into account to determine your personal loan eligibility. On a general front, people with a full-time job experience of two or more years in their current place of employment do not face personal loan denials. This stands applicable for salaried employees. In the case of self-employed people, they may be required to produce valid proof of their earning turnover for a period of five years.
Job stability helps the lender scrutinize the eligibility of the loan-seeking party. Based on the stability of the applicant’s career, they analyze the financial condition and ability of the borrower to repay the loan amount. Only then the lender moves ahead to accept or decline a personal loan.
The age factor stands to be crucial for determining personal loan eligibility. The younger the age of the loan applicant, the higher the chances for them to get a green signal for loan approval. Banks and lenders have a belief that a young applicant is more capable of repaying a loan in comparison to an elder counterpart. Also, if you are young, it means that you have more number of working years lying ahead of you to repay the amount compared to a person who is soon to retire from his/her services.
The current liabilities of a loan applicant also play an important role in deciding personal loan eligibility. If the borrower already has any other loan in their name, such as a home loan, education loan, or any other loan, the lender might need to find out the status of the existing loan in detail. This is because the lender would want to ensure that the loan applicant is stable enough to manage the existing loan and the new personal loan they are applying for.
A personal loan is quite a handy option that one looks up to when in need of emergency funds. Whether it be a family wedding, a child’s educational needs, a medical emergency, or any other needs that arise all of a sudden, a personal loan can help cater to the emergency requirement of funds. But availing a personal loan is not that easy as one has to fulfill the criteria set by different loan lenders. By keeping a check on the pointers mentioned above, you can surely increase your chances of getting a personal loan in Chennai.