Dreaming of taking a vacation at an exotic location? Or perhaps you’re planning a destination wedding? Whatever may be your needs, a personal loan is just right to finance them. When you apply for a personal loan, your eligibility is determined by many factors. Do understand these before you fill in your personal loan application.

Credit Score

Your credit score is perhaps the first parameter a lender will look at. In essence, it determines if you can afford a loan and your reliability when it comes to personal loan repayment. The lender will use this score to evaluate your eligibility and calculate the final interest rate you’ll be offered. The higher your credit score, the lower your interest rate.

Current Financial Condition

Another important aspect that lenders look into when evaluating your personal loan application is your current income and expenses. Even if you do earn a substantial sum, lenders look at how much debt you owe – credit cards, loans, mortgages etc. Some lenders also consider other aspects like your monthly bills, alimony, and child support. They will use your income to determine the Debt-to-Income ratio to get an understanding of your ability to repay your personal loans.

Employment History

Lenders often want to see an official record of ongoing income and employment stability. If you have a stable job, there shouldn’t be any problem when you apply for a personal loan. However, applicants who frequently change jobs or are self-employed may not find it easy to get a loan sanctioned, since they pose a higher risk for lenders when it comes to personal loan repayment. Good employment history, on the other hand, doesn’t necessarily mean that you’ve stayed with the same company for several years. What lenders want to see is that you have stayed in the same line of work and it has been stable. On that note, self-employed candidates receive closer scrutiny by lenders and need to provide in-depth information.


When you apply for personal loans, you need to know this number as it indicates whether you can afford to pay a loan on your current budget or not. A borrower’s EMI amount depends on the rate of interest and length of the loan.

Other Factors

Some lenders put weight on the loan amount and your plans for using it. For instance, you could have a good credit score and a reliable source of income, but the lender might consider the loan amount to be too risky to take on. While some banks check your loan repayment history, others might consider your relationship with the organization.

Attractive Personal Loans at Tata Capital

Personal loans at Tata Capital are designed to suit your unique needs while offering a great degree of flexibility. Get easy finance at competitive interest rates to fund your needs – big or small. Avail a loan amount from Rs. 75,000 – 25,00,000, with interest rates starting at 11.25%. Apply for a personal loan at Tata Capital today!


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