The last few years have seen a significant rise in personal loan borrowers. And, why not? This loan type comes with a deluge of advantages hard to find in another financial instrument. When you avail of personal finance, you can use the funds for a wedding, medical expenses, travel, and pretty much any other expenditure.
Often, lending institutions do not require any explanation to approve the loan. What’s more, since personal finance is unscured, you don’t need to pledge any collateral against the loan amount. The primary factors for approval of personal finance are your CIBIL score, income stability, and employer details.
How does your organisation affect your personal loan eligibility?
Out of the three factors for personal loan eligibility discussed above, employer details is often the least talked about. Remember that lenders classify organisations into different categories. These include:
- Super A
- Category A
- Category B
- Category C
- Category D
But what is the reason for this classification? Well, lenders use these categories to assess an applicant’s employment stability. If top-tier companies employ you, you’ll find it relatively easier to receive the lender’s approval for the loan. Also, you may even receive the loan amount at a competitive personal loan interest rate.
However, this categorisation does not imply that people falling towards the bottom of the spectrum will not get personal finance quickly. The only difference lies in the rate of interest you get on the loan.
The reason behind personal loan eligibility bifurcation
Needless to say, when lenders extend an unsecured loan without asking for collateral in return, they want borrowers with robust repayment capacity. And one way lenders judge the repayment capability is by looking at where an applicant works.
Income and employment stability are key factors for personal finance approval, and the better rated your organisation, the lower your chances of defaulting on the loan.
Additional Read: How to Check Personal Loan Eligibility in India
Complete eligibility criteria for availing of personal finance
If you apply for personal finance with Tata Capital, you will be required to fulfil these eligibility criteria:
|Age limit||22 – 60 years|
|Organisation||Name of your company and years in employment|
|Citizenship||You must be an Indian citizen|
|Financials||Last 2 months’ salary slips and 6 months’ bank statements if salaried Latest IT return and 6 months’ bank statements if self-employed|
Also, you can use our eligibility calculator to understand your creditworthiness for a particular loan amount. And measure your potential monthly instalments with the help of an EMI calculator for loan, which is readily available online.
Additional Read: How to Choose the Best Personal Loan for Needs?
The bottom line
In a nutshell, when taking a personal loan, company type matters! If you are fishing the market for personal finance, turn to Tata Capital. We provide loans at competitive interest rates with customisable repayment terms.
You can apply for the loan online with minimal documentation. After approval, our financial experts ensure speedy disbursal of funds. Don’t dent your savings for a considerable expense. Instead, apply for personal finance at Tata Capital today!