7 Things You Need to Know if You Qualify for a Personal Loan
There are numerous things that you should be aware of at the time of taking a personal loan. In today’s economy of low employment and high demand for resources, it is not easy to get a personal loan instantly. There are several criteria put forth by the bank or lenders which need to be fulfilled to get a loan, then it may be any loan. You should get the idea of personal loan eligibility before approaching a bank.
Every bank has its a set of eligibility criteria. You need to carefully look into it. To elaborate it here are the points highlighted below to give a clear picture of it.
The foremost thing that needs to be fulfilled is the age of the borrower. The minimum age required to get a personal loan is 21 years and the maximum age is 60 years. At the time of loan maturity, the maximum age for a salaried employee can go up to 60 years, and for a self-employed profession its 65 years. However, it varies from banks to banks, you can analyze the criteria of different banks and then choose the one for which you are most eligible for. The higher your eligibility criteria, the higher your chance to get a better loan term.
The higher your salary is, the more you are able to get the best loan facilities. But the minimum salary an individual should have to obtain the loan is $20000 annually. The higher the amount of your salary, the higher will be the ratio allowed by the bank of fixed obligations to income. The higher the earnings, the better are the chances to get a high amount of loan. It also varies from banks to banks, but in the end, we know a better sum of amount is always preferred than a minimal sum of amount. Take in mind that there are also lenders who don’t have a limit on salary to apply for a loan. You can have a personal loan even you have an income less than $10,000 annually.
· Work experience
Weird to listen this? But yes, it matters. The more you are experienced, the greater will be the faith of the bank on you. As it gives a sense of company will not lay you off for any random reason. It helps to build trust. But on a general basis, your minimum work experience should be 3 years to get a personal loan.
· Company Profile you work in
Companies profile has a mammoth effect on your loan eligibility. Good company profile and high salary enable a borrower to easily get a loan at a low-interest rate. The better the company profile, the higher chances of yours to get loan easily. If you don’t have a good company profile but are eligible for it, you can switch your company and wait until you get one for the best loan opportunities. This will help to attain a loan at a low interest rate which really matters in the long term.
· Any other Equated Monthly Instalment (EMI)
Any other obligation to your existing income will surely lower your eligibility criteria for a personal loan. To get better loan opportunities you must first clear off your existing obligations or EMI’s to straightforwardly get a new personal loan. You must look that your earings should be higher after paying off the debts or EMI’s to get a better personal loan.
· Public or Private limited companies
The company you work in belongs to the public sector or private sector has also a massive affect. We know public sector employees are always preferred over the private sector. A person from the public sector always gets the privileged over the private sector, due to the trust and faith build by a government sector than compared to any other working sector. Thus, by knowing your sector, you know where you stand in the line of eligibility criteria for a personal loan.
· Longer time frame
A borrower should opt for a longer term of the personal loan. This helps to reduce the EMI to be paid and helps to disburse the overall due amount in the longer time span. This decreases the obligation per month which will automatically decrease the fixed obligation to income ratio and help the borrower to better fulfil the eligibility criteria of a personal loan.
Thus, anyone willing to get a personal loan must make a thorough analysis of the personal loan eligibility criteria of the specific bank he/she is willing to borrow from. And should try to fulfil it effectively before approaching a bank.
If you are well prepared before approaching the institute, it will enable you to have a good image in the eyes of high authorities which makes your work simpler and as easy as pie. Hence, get all the required knowledge regarding the eligibility criteria and the documentation which are required to get a personal loan, and get a higher preference as compared to others.
In the event that you are not qualified for a personal loan from banks, you don’t have to worry. You can still have a chance from other lenders. Know more how you can get instant loan approval in Singapore.