Eligibility Criteria for Personal Loans ✅ 150 WORDSIncome RequirementsCredit Score ConsiderationsEmployment and Residency StatusDebt-to-Income Ratio (DTI)Income Requirements – It depends on lenders. While NBFCs may offer loans to people with low income like ₹25000 or ₹10000 Or ₹20000, other standard and popular lenders may have a starting limit of ₹40, 000 like in ICICI Bank. ICICI Bank. Credit Score ConsiderationsCredit score is one of the key factors in deciding the approval of a personal loan. Credit score usually ranges from 300-900 where 300 is the lowest and 900 is the highest. There are many companies that provide your credit score based on their analysis. Popular ones are CIBIL, Equifax, Experian. People with above 750 score usually get better interest rates and higher loan amounts while people with below 750 slammed higher interest rates and lower loan amounts. Employment Status. Your employment status can make or break your loan. It’s crucial for applying personal loans. While 95% of lenders don’t loan to people who are not in a job, 5% do. These are mostly NBFCs slamming you with high interest rates upto 130% and lower tenure like 3 months. So if you don’t have a job with income proof and employment stability, forget getting loans from standard lenders. But that’s not a problem because you can get loans from various lenders because these days there are so many lenders with flexible terms. So worry not. Debt-to-Income RatioDebt-to-Income Ratio is a percentage that tells how much of your income goes to debt. For example, if you’re earning 50k, and 25k goes in debt, then (25k/50k) multipled by 100 gives you the debt to income ratio. Here it’s DTI = 0.5*100= 50%.One can see the DTI ratio and instantly decided whether you’re a safe borrower or a risky borrower. DTI ranges<20% – Strong candidate for loan. 20-35% – Good candidate for loan. 36-40 – Decent candidate for loan. >40% – Risky candidate for loan.
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