How to check maximum loan eligibility for Personal Loan?
January 23, 2020
Personal Loans are quick loans that help us during a crisis and can be easily availed online. These loans are unsecured in nature, i.e., they do not require any asset to be pledged. That is why they have seen significant growth in recent years. So, if you see yourself in a cash crunch or need an emergency fund for a wedding, medical treatment or education; apply for a Personal Loan. Personal Loans are easily given to people with a good CIBIL score. So, if you have a CIBIL score above 700, you automatically qualify for one.
Why is a CIBIL score important?
CIBIL score is important because it furnishes the financial history and behaviour of a person. A CIBIL score or a credit score is a three-digit number ranging from 300-900. 300 being the lowest and 900 being the highest. To be eligible for any kind of loan or a Credit Card. A person should have a minimum score of 700. Always remember that CIBIL has a record of all your loans, Equated Monthly Instalment (EMI) and Credit Card expenses.
Why is it important for Personal Loan?
If a person defaults his/her loan or even misses a payment, the score gets hampered. Therefore, we must pay all our dues on time and never miss any payment. If the credit score goes lower than 700, then your chances of getting a Home Loan decrease. This also reduces your chances of getting a Personal Loan, when you really need money. So, before applying for a loan, you should check your CIBIL score, which is available both online and offline. Even after knowing their score, people still check their Personal Loan eligibility before initiating the application process.
How does one conduct a Personal Loan eligibility check online?
Personal Loan eligibility check can be done online using the eligibility calculator tool. This tool is present in every banking and Non-Banking Financial Company’s (NBFC) website, which can be easily used by entering the following details:
- Date of birth
- Mobile number
- Employment details
- Net Income
- City of residence*
After entering all the details, the Personal Loan eligibility calculator will instantly prompt the eligibility status and the amount pre-approved for you. Based on the information generated, you can select the desired loan amount and the repayment tenure.
*The details asked on the eligibility calculator, vary from tool to tool.
Features of Personal Loan:
- Personal Loans are quick and do not require many documents. For example, when you apply for a Home Loan or an Auto Loan, a lot of paperwork goes behind the application. Personal Loans only require income proof and basic Know Your Customer (KYC) documents.
- Home Loan or Auto Loan is specific to a purpose or a reason, i.e., you borrow them only when you have to purchase a house or a car. But, when applying for a Personal Loan, nobody asks the reason. You can use the money to clear a debt, go for a vacation or to renovate your home. The reason always remains at your discretion.
- As stated earlier, Personal Loans are unsecured in nature. They do not require any collateral or asset to be mortgaged as security. Since loans are disbursed solely on your credit score, banks charge higher interest rates compared to other loans.
- The repayment period for a Personal Loan ranges from 12 to 60 months. This gives you the liberty to choose an EMI within your budget.
There are various channels, both banking and non-banking institutions that offer Personal Loans. ICICI Bank also has attractive offers on Personal Loan with minimum documentation, quick disbursement and flexible repayment options.
Avail of instant approval Personal Loan to meet your financial needs.
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