It’s important that you determine the maximum personal loan amount you’re eligible for before comparing offers from different banks and financial institutions. Although every bank and NBFC would have its own exact eligibility criteria for personal loans, there are some broad guidelines that all lenders follow with regard to their approvals. Some of the basic parameters that are taken into account during personal loan approval process include age of the individual, his/her income stability, financial situation, credit score and employer type. As personal loans are unsecured in nature, these parameters are the only things that lenders can depend upon to gauge your credit-worthiness.
There are multiple different factors that affect the personal loan amount you’re eligible for
Your monthly income will be factored-in to determine your repayment capacity, and hence the personal loan amount.
Working with a big public sector company or a reputed and well-established private company would improve your eligibility.
Having a longstanding banking relationship with the potential lender can be instrumental in negotiating better loan terms.
A good CIBIL score indicates good financial health, and is critical in determining the personal loan eligibility.
Personal loans are one of the most-frequently bought lending products from the banks and NBFCs in India. They can be used for all purposes ranging from vehicle purchase, wedding expenses, loan repayment, vacations to even medical procedures. However, lenders will need to determine your financial stability and analyze the credit risk before approving and disbursing a personal loan. This is done through the pertinent documents submitted by you. These documents are required to verify details like income, age, employer and address. As personal loans are unsecured in nature, implying that the lender doesn’t take anything as a collateral, the lender needs to be double sure about the facts stated by you. Please note, the documentation requirements for personal loans may vary from lender to lender. However, there are some standard set of documents that are requested by all the lenders. Let’s go through them below:
As a home loan is essentially to do with the purchase of a home, it’s normally quite big in amount compared to a personal loan. Even a minor difference in the offered rate and/or terms of a home loan can have a major impact on your financial burden, both in short and long term. Hence it becomes very important that you comprehensively compare and evaluate different home loan offers in India, on multiple criteria, before finally selecting one. Furthermore, as all the banking establishments and NBFCs engaged in home loans business offer different types of offers and discounts to attract more customers, comparison is the only way that you can find out the best one among them for your needs. You must compare home loan offers on various important parameters including interest rate, application approval time, loan disbursal time, no. of documents required, approval success rate, processing fees and automated rate revisions.