When you require quick funds, you immediately look for a suitable credit option to get the necessary financing. However, for some, it might be difficult to avail financing with a low credit score or no credit at all. Your credit score is an important factor that lenders consider in determining whether you will be able to repay a loan on time. To ensure your loan is approved, you need to qualify for the eligibility criteria set by the lender. After all, prequalifying for a personal loan will make the process seamless and you can avoid loan rejection.
How to Prequalify For A Loan?
The pre-qualification process is simple and similar across most lending platforms. You are required to provide a few details to the lender to help them decide whether you are eligible for the loan, including:
- Identity Proof: An ID proof is the most basic requirement to confirm your age and citizenship.
- Employment Type and Income: Your monthly income and employment status helps lenders check your financial stability. Having a stable job and income will make you prequalified and you can avail a loan effortlessly.
- Loan Amount You Wish To Avail: When you apply for a personal loan, you have to mention the loan amount you plan on borrowing. Ensure that the loan amount you borrow is reasonable so that you can repay it on time.
Personal Loan Eligibility Calculator
The personal loan eligibility calculator is an online tool to help you understand the loan amount you can get through a personal loan. You need to provide details like your city of residence, date of birth, monthly income, and expenses to get the results. Checking your eligibility will let you know the eligible loan amount and lower your chances of loan rejection.
The following are the basic loan eligibility criteria to avail a personal loan:
- The age criteria to qualify for the loan is 21 to 60 years.
- A salaried employee must have 2-3 years of work experience to be eligible.
- Self-employed individuals must have a business vintage of at least 3 years.
- A credit score of 750 and above is a great score to be eligible for a loan at attractive interest rates.
To ensure smooth loan approval, you need to make sure you have all the required documents in place to submit along with your loan application. Given below is the list of the basic documents required for a personal loan.
- Documents for proof of identity such as Aadhaar/PAN card, passport, etc.
- Documents for proof of address such as Aadhaar card, passport, electricity bill, etc.
- The applicant’s bank statements for the last six months.
- Salaried applicants need to submit bank statements and salary slips for the last three months.
- ITR (Income Tax Return) filing or Form 16.
Credit Score For Personal Loan
An individual with a credit score of 750 and above can get their loan approved easily. A credit score of under 599 won’t be eligible for the loan. If you have a score that ranges from 600 to 750, you may get approved for a loan, but the interest rate charged will be slightly on the higher side. This may affect your overall budget to make payments towards your loan EMIs. Also, make sure to check your CIBIL report once every six months to check for errors and get them rectified if any. Doing so will help you keep a track of your financial behaviour and gradually improve your credit score.
Now that you know what pre-qualifying is, you probably would be looking for lenders to apply for a personal loan. At Finserv MARKETS, Bajaj Finserv offers low interest personal loans of up to Rs. 25 lakh. The eligibility criteria for a personal loan is simple with minimal documentation required. The quick online process for a personal loan with the Finserv MARKETS app makes it an ideal choice to get instant financing. Most importantly, the loan repayment terms for a Bajaj Finserv Personal Loan are flexible and customer-friendly. The funds can be used to finance all kinds of financial needs such as home renovation, travel expenses, debt consolidation, and paying off medical bills.