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2 mins Read | 4 Years Ago

How to check maximum loan eligibility for Personal Loan

how-to-check-maximum-loan-eligibility-for-personal-loan

How to check the maximum loan eligibility for a Personal Loan?

Looking to secure a Personal Loan for unforeseen expenses or to fulfil life's milestones? Understanding your maximum loan eligibility is important. Personal Loans offer swift financial support without collateral, making them increasingly popular. Whether it's covering wedding costs, medical emergencies or educational needs, they provide a lifeline. Assessing your eligibility revolves around factors like creditworthiness, often measured by a CIBIL score. A score above 700 typically ensures a smoother approval process, whereas some lenders may also have a minimum CIBIL score requirement for Personal Loans.

What is CIBIL score?

CIBIL score or a credit score is a numeric representation of an individual's creditworthiness. It ranges between 300 and 900, with higher scores indicating better creditworthiness. This score is necessary in determining eligibility for various financial products, including Personal Loans.

At its core, CIBIL score reflects an individual's credit history, detailing their repayment behaviour with past Loans and Credit Cards. It considers factors such as timely repayment, credit utilisation ratio, credit mix and duration of credit history. Lenders use this score to evaluate the risk of lending to an individual.

The minimum CIBIL score required for Personal Loans varies among lenders but is typically above 700. A higher score increases the likelihood of a loan-approval and may even lead to more favourable terms such as lower interest rates.

Maintaining a healthy CIBIL score is essential for accessing credit when needed. Consistently paying bills on time, keeping Credit Card balances low and avoiding multiple loan applications, etc. can help improve or maintain a good CIBIL score.

Regularly monitoring one's CIBIL score and addressing any discrepancies or negative factors can enhance financial stability and increase the chances of securing a Personal Loan when required. Understanding the significance of the CIBIL score empowers individuals to make informed financial decisions and manage their credit responsibly.

CIBIL Score Range

CIBIL Score Range Creditworthiness Approval Probability

Below 600

Urgent Action Needed

Low

600-649

Doubtful

Difficult

650-699

Satisfactory or fair

Possible

700-749

Good

Good

750-900

Excellent

Very High

How to check Personal Loan eligibility online?

Here is how you can check your Personal Loan eligibility -

  1. Access the Eligibility Calculator: Visit the official website of a bank or Non-Banking Financial Company (NBFC) offering Personal Loans. Access their Personal Loan Eligibility Calculator.

  2. Enter personal information: Enter your name, date of birth and mobile number into the provided fields.

  3. Provide employment details: Provide information regarding your employment status, including your current employer's name and your designation.

  4. Share financial information: Enter your net income, which typically includes your monthly or annual earnings or any other information requested.

  5. Specify city of residence: Some eligibility calculators may require you to provide your city of residence, to assess regional factors or loan availability.

  6. Submit the details: After entering all the required information, proceed to submit your details.

  7. Review the results: The calculator will process the information and provide your eligibility status for a Personal Loan. It may also display the amount pre-approved for you, based on the provided details.

  8. Select the Loan amount and tenure: Based on the eligibility status and pre-approved amount, you can choose the desired loan amount and the repayment tenure that suit your financial needs and capacity.

By following these steps, individuals can quickly and conveniently check their eligibility for a Personal Loan.

Conclusion

Understanding the minimum CIBIL score required for a Personal Loan is important. Typically, set above 700, this benchmark streamlines approval processes and improves loan terms. Utilising online calculators like the one offered by ICICI Bank, simplifies assessment. By adhering to sensible financial practices, individuals can confidently navigate the borrowing landscape, securing the support they need.

 

 

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