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How To Get A Personal Loan In Easy Steps

mahindra-finance-author

by Mahindra Finance

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April 11, 2024

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4 mins read

If you're in need of funds for various expenses like medical bills, wedding costs, or home renovations, a personal loan can be a great solution. But how do you go about getting one? In this step-by-step guide, we'll walk you through the process of applying for a personal loan and explain the personal loan criteria you need to meet. By the end, you'll understand personal loan eligibility checks, calculate the loan amount you can get, and ensure you meet the minimum salary requirements.

Understanding personal loan criteria and eligibility

Before applying for a personal loan, it's important to understand the personal loan criteria set by banks and financial institutions. Each lender may have slightly different requirements, but there are some common factors they consider:

Credit Score: Your credit score is a key factor in determining your eligibility for a personal loan. A higher credit score indicates better financial discipline and increases your chances of approval.

Income Level: Lenders will assess your income level to determine whether you have sufficient funds to repay the loan. The minimum salary requirement varies among lenders.

Employment History: Having a stable job with a consistent income stream improves your chances of getting approved for a personal loan.

Age: Most lenders have an age criterion that ranges from 21 to 65 years.Example: Let's say Ravi wants to apply for a personal loan. He has been working at his current job for over two years and earns a monthly salary of ₹25,000. Ravi decides to check his credit score and finds it to be 780, which is considered excellent. Based on these details, Ravi meets the personal loan criteria.

Checking your personal loan eligibility online

When it comes to personal loan eligibility check online, you can visit a lender's website or use a reliable mobile banking app. Look for the "Personal Loan Eligibility Check" feature and enter the required details such as your age, income, employment history, and credit score. The online tool will analyze your information and provide an estimate of the loan amount you are eligible for.Example: Radha wants to apply for a personal loan online. She visits her bank's website and uses their eligibility calculator. After entering her details, Radha finds out that she is eligible for a loan amount of up to ₹5 lakhs.

Calculating how much personal loan you can get

Once you know your eligibility, it's essential to calculate how much personal loan you can get based on your income and repayment capacity.Lenders typically use the Fixed Obligation to Income Ratio (FOIR) to determine the maximum EMI (Equated Monthly Installment) you can afford. FOIR represents the percentage of your monthly income that goes towards repaying existing loans including the proposed EMI. You can use a personal loan EMI calculator to accurately assess your potential loan amount and repayment obligations.

Meeting the minimum salary requirement

While calculating your personal loan eligibility, it's crucial to ensure that you meet the minimum salary for personal loan criteria set by lenders. The minimum salary varies among financial institutions and depends on factors such as your location and credit score.

Submitting your loan application

Once you have determined your eligibility and calculated the loan amount you can get, it's time to submit your loan application. You can do this online through the lender's website or by visiting a branch in person.

Gather all the required documents such as identity proof, address proof, income statements, bank statements, and any other documentation specified by the lender. Make sure to fill out the application form accurately and attach all necessary documents.

Conclusion

How much personal loan can I get? If you are wondering about this, the answer lies in understanding the eligibility criteria, calculating the loan amount, and meeting the minimum salary for personal loans. Remember to choose a reputable lender that offers competitive interest rates and favorable terms.

If you're looking for a trusted financial partner, Mahindra Finance provides personal loans tailored to your needs. With their easy application process and flexible repayment options, Mahindra Finance can help make your dreams a reality.

FAQs

Q: How much personal loan can I get?

A: You can check your personal loan eligibility online using a lender's website or mobile banking app. 

Q: What is the minimum salary for personal loans?

A: The minimum salary required for a personal loan varies among lenders.

Q: Can I get a personal loan if I have a low credit score?

A: While having a good credit score increases your chances of getting approved for a personal loan, some lenders offer loans to individuals with lower credit scores.

Q: Can I use a personal loan for any purpose?

A: Yes, personal loans are versatile and can be used for various purposes like medical expenses, home renovations, wedding costs, or debt consolidation.

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