As you probably know personal loans are a type of unsecured loan. In this one there is no need for you to keep any object or amount as collateral in order to get a loan sanctioned by a financial institution or a bank. You need to apply for a personal in order to satisfy your current financial problems.
Eligibility for Personal Loans
Many financial institutions, banks, and independent loan providing agencies offer personal loans to people. Although there are no specific criteria for eligibility, given the fact that these tend to vary from one bank to another, you need to satisfy some basic points as specified by a lot of banks. You need to satisfy the following parameters in order to be eligible for the personal loan that you are trying to get.
- Age – Although the criteria related to age differ from one bank or financial institution to another, you need to be within 21-60 years as a salaried applicant, and within 25-65 years as a self-employed applicant.
- Financial Condition – Many banks and financial institutions pay a lot of emphasis to the financial state of the applicant. The income and the ability to pay back the loan are the main aspects of the financial condition eligibility. You need to remember that banks are extremely cautious about this aspect.
- Employment – As a salaried applicant, you need to have a minimum of 2 years of experience in employment. At your current you need to have at least 1 year of experience. However, as a self-employed individual you need to work for a minimum of 5 years and have 2 years of experience in working in the present occupation. However, this criterion is flexible based on the lender.
- Credit Liability – In the event that you have any dues that are outstanding, you will need to get a lower loan amount that you would have been eligible for without any dues. This is due to the fact that the loan amount is assessed depending on the EMI that you can pay.
- Credit score - This is a vital aspect when you are trying to get your loan sanctioned. In the event that you fail to pay back your loan or delay in paying the EMI, you can ruin your credit score and the opportunity to get a loan. However, if you have a good credit score, then you will have to opportunity to negotiate with the bank. You can also increase the loan amount that you would have been eligible to get.
How to Get Personal Loans?
You can get in touch with a credit union or a bank to obtain a personal loan. In many cases, you can get a loan on the basis of the credit record that you have. You can get the loans on your credit record and name. In the event that you have more or less good credit, you can get personal loans from credit unions or banks. Generally, no collaterals are attached to personal loans from credit unions or banks.
You can also get it from these personal loan agencies. Generally, applicants are required to have a home, a job and some type of collateral to get their loan applications approved. If you are unable to get loans from credit unions or banks, then these personal loan agencies would be a good option. However, you need to ask a few things such as weekly or monthly payment amount, tenure of loan, interest rate and various other things before signing on the dotted line. In this way, you can ensure that you get your the money and avoid any problems related to some specific issue that you might have neglected.
Hope you like the above mentioned information. If you would like to know more then let’s go to the details to get some more useful information about personal loan.
