Are you looking to avail of a personal loan for your child’s education, a medical emergency, paying off credit card debt, wedding expenses or any other big-ticket purchase? After all, these are some of the most critical expenses for which finance must be the last thing to worry about. And, thanks to personal finance, it is.

To apply for this type of loan, you must strictly fulfil the personal loan eligibility criteria set by any lending institution. Many financial institutions have also launched COVID-specific personal loans for a short period so that people could meet emergency medical fund requirements. Add to it, several lenders are once again offering concessions and lower interest rates to encourage citizens to take personal loans.

Additional Read: How can a Personal Loan help you manage your Emergency Expenses?

So, if you want to apply for this type of loan, read further to learn about the current personal loan eligibility criteria.

Personal Loan Eligibility Criteria in 2020

The eligibility criteria may differ from one lender to another, but the standard criteria are mentioned below.

  • For self-employed applicants
  1. The eligible age group falls between 22 years to 58 years of age.
  2. The applicant must earn at least Rs. 15,000/- per month.
  3. The applicant must have a minimum work experience of 1 year.
  • For salaried applicants
  1. The applicants must be aged between 22 and 58 years.
  2. The applicant must earn at least Rs. 15,000 per month.
  3. The applicant must have a minimum of 6 months of work experience with the current organisation.

Additionally, lending institutions require specific documentation to establish borrower credentials. The generic personal loan documents required by most lenders are given below.

  • PAN Card
  • Proof of identity like Aadhar card, Voter card
  • Proof of residence
  • Bank statements for the last 6 months
  • Proof of employment (for salaried individuals)

How to Improve Your Eligibility?

Various factors affect your eligibility for a personal loan. These include your age, monthly income, work experience and credit score. To quicken the approval of your application and get a competitive personal loan EMI, you need to ensure that your borrowing history is seamless.

For lenders, the credit score is the first indicator of your borrowing history and repayment capacity. You can improve your credit score, and subsequently your personal loan eligibility by making payments on time, getting rid of all outstanding debt and not borrowing from multiple lenders. Also, adding a trusted individual as your co-borrower can further boost your eligibility.

Additional Read: Why Should your Opt for a Personal Loan this Festive season?

Fulfil Your Personal Loan Requirements with Tata Capital

Are you wondering where to get your personal loan from? Tata Capital offers some of the lowest interest rates starting at 10.99%, along with a flexible repayment tenure and a personal loan EMI amount that you decide. Evaluate your monthly instalments and interest rate in advance by using our EMI calculator and make an informed decision. What’s more, you can submit your application digitally as well! Visit our website to know more about our online loan application process today!

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