Many personal expenses arise during the course of our lives. Some expenses may be anticipated, while others may come as a surprise. For example, let’s say you’ve been saving enough to buy your dream laptop or a new car. You’ve obviously been putting money aside so that you don’t have to worry about repaying a significant loan.
However, people occasionally face unforeseen financial circumstances that force them to spend a large sum of money without warning. If you don’t have the required amount in your savings account, you can apply for a personal loan up to ₹5 lakhs now, anytime. The best thing is that if you are eligible, you can get your personal loan approval in less than a few hours!
However, before beginning the personal loan application process, readers should be aware of the factors that influence their loan eligibility. Some important factors that are considered before an instant personal loan application is approved are explained below.
Factors Affecting Your Eligibility for Instant Personal Loan
Here are 5 factors that affect the eligibility criteria for approval of an instant personal loan online:
This criteria ensures that the lender knows you have a sufficient number of working years left. Lenders favor applicants between the ages of 19 and 65 in most cases.
Because instant loans do not require any collateral, your monthly income and repayment capacity becomes a key factor. The income requirements differ depending on where you live, for example, in metro cities (Tier-1 cities), towns, and villages (Tier-2 cities).
In most cases, many lenders prefer giving credit to applicants with greater job experience as they appear to have a more financially secure future. To get a Home Credit personal loan, you can be either a salaried or self-employed individual with a minimum income requirement of just ₹10000/month.
Apart from meeting the standard eligibility requirements, you will also need a decent CIBIL score for approval of your instant personal loan application.
A credit score is a three-digit figure that lenders use to determine your creditworthiness and risk of default. It shows how you previously handled your finances and bills. The lower your credit score, the less likely you are to get approval for a personal loan. The higher the number, the better your chances.
The majority of lenders in India use a CIBIL score which ranges from 300 to 900.
At Home Credit, we look beyond just a CIBIL score to determine your creditworthiness. It’s what makes us special!
When it comes to accepting your personal loan application, your current liabilities can make or break the deal. The lender will evaluate your debt-to-income ratio before deciding whether or not to accept your application.
This is because the majority of your monthly income will be used to pay off debts such as large credit card bills, home loan EMIs, vehicle loan EMIs, and other debts, leaving you with insufficient funds to cover your household expenses. This information informs the lender that you will be able to repay your present debts while also repaying the new instant cash loan you intend to take.
However, to avail of a Home credit personal loan, you just need to fulfill our simple eligibility criteria:
- Be an Indian citizen over 19 and below 68 years of age,
- A salaried or self-employed individual with a minimum income above ₹10000
- Have a valid identity & address proof.
- Have an active bank account with a net banking facility
Equipped with the knowledge of these factors of eligibility, you can check your instant loan availability with any suitable lending platform.
Are you looking for a friend that will never let you run out of money when you really need it? You’ve got us here! A Home credit personal loan is a fantastic way to manage a variety of emergencies and non-emergency needs.
Things To Check Before Choosing an Online Personal Loan Provider
Any reputed financial institution that has the following qualities is worth considering:
- Hassle-free loan application procedure: Remember that a truly devoted personal loan lender would try to make itself easily accessible. Its application process should be quick and hassle-free so that even a newbie can complete the procedure sitting at home.
- Instant approval and disbursal: A reputed lender would definitely try to disburse the required amount as quickly as possible. Choose a lender that would sanction and disburse the loan amount instantly.
- Freedom to use the loan as the applicant wants: The personal loan you have applied for must be allowed to be used for any purpose, whatsoever. It can be for a home renovation, wedding, education, vacation, debt consolidation, and a variety of personal reasons.
- Doesn’t ask for collateral: Personal loans are unsecured loans. A well-known financial lender wouldn’t ask the applicant to provide any collateral to secure the loan.
- Minimal documentation required: Also check what documents would be needed for the application process. If the lender requires anything more than your address proof, or identity proof, you might as well consider the other lenders available online.
- Flexible terms of repayment: Any reputed lender is expected to be extremely friendly and approachable. Therefore, the lender you have chosen online must offer flexible terms of repayment of the loan, allowing the borrower to choose a repayment tenure as per his/ her convenience.
Are you looking for the best personal loan lender online? Home Credit India is currently a top-rated financial institution that provides financial help to people all over India. With us on your side, you can get an instant personal loan of up to ₹5 lakhs with minimal paperwork & a hassle-free application process.