Personal loan eligibility calculator: Here are tips to evaluate your borrowing potential

livemint.com:

Also Read: Importance of using an EMI calculator while getting a personal loan The eligibility criteria for a personal loan can vary from lender to lender, but typically include factors such as age, citizenship, employment status, income, credit score, and debt-to-income ratio. Most lenders require borrowers to be at least 21 years old, be Indian citizens, have full-time or part-time employment, earn a minimum monthly income, have a good credit score (usually 650 or higher), and have a debt-to-income ratio of 40% or less. Banks and other lenders use their financial calculations and models to determine loan eligibility.

By understanding the factors that lenders consider when assessing your eligibility for a personal loan, you can better prepare for the loan application process and increase your chances of approval. When applying for a personal loan, you will need to provide a set of documents and information to the lender for them to evaluate your eligibility and make an informed decision.

Also Read: Top 10 banks offering most competitive personal loan interest rates; check full list here Firstly, you will need to provide proof of your identity.

This could include documents such as your Aadhaar card, PAN card, passport, or driver's licence. These documents are necessary to verify your identity and ensure that you are who you say you are. Next, you will need to provide proof of your address.

This can be done with documents such as your Aadhaar card, passport, driver's licence, or utility bills. Providing accurate and up-to-date address proof is crucial for the lender to contact you and ensure that all communication is being sent to the correct address. You will also need to provide proof of your income.