Are you looking at SBI personal loan online schemes? Do you want to know if you are eligible for one or not? Each lender has its eligibility criteria, and your loan application will be accepted when you are eligible for the loan. A personal loan is an excellent way of managing emergency and non-emergency expenses such as a wedding, a medical emergency, funding your child’s education, or purchasing a new appliance. Like other loan products, a personal loan should meet specific eligibility criteria.
Here we have the factors affect SBI Personal Loan eligibility:
Factors that will affect the eligibility criteria for SBI personal loans for the salaried employees are as follows.
1. Monthly Income
Monthly income is a significant factor in all sorts of loans. Collateral support secured loans like home loans, car mortgages, or gold loans. However, it is not the case with a personal loan. The lender wants to make sure that you have an adequate monthly income via which you can repay the loan on time. Based on your location, the income requirements will vary. Since the cost of living is high in metro cities like Delhi, Mumbai, and Bangalore, the monthly income requirement is also higher.
Another factor that affects SBI’s loan interest rate for salary accounts is your age. By your age, the lender estimates the number of working years remaining. The most common age group preferred by salaried applicants is between 23 and 58 years. The eligible age range for self-employed professionals and non-professionals is 28 to 65 years. Self-employed people can continue working even after the retirement age of 58-62 years, and so the upper limit is set to 65 years.
3. Credit score
A credit score is given to you based on your credit history. It helps the lender understand how regular you have been in credit card repayments in the past. Most lenders in India consider the CIBIL score in their eligibility criteria. The CIBIL score, however, ranges from 300 and 900. The chances of loan approval increase with the increase in the score.
Lenders, in general, prefer applications that have a CIBIL score of 700 or more. If your CIBIL score does not meet the eligibility criteria and is under 700, you must first improve your credit score. Improve your score before the option for SBI personal loan online. This way, you can meet the lenders’ requirements without your application getting rejected.
4. Current liabilities
Your current liabilities are another vital factor in personal loan eligibility criteria. The lender would want to detail each of your current loans, like home, car, or education. By knowing the details, the lender would want to ensure that you have enough income for repaying your existing liabilities with the new personal loan you want to take.
5. Work experience
The last factor that affects SBI personal loan interest rate for the salary account is your work experience. The financial future of those applicants with more work experience is more secure compared to someone who has just started. The lender you choose will affect the minimum experience. Other factors affecting this are your occupation and when you started working. Have a glance at the below-mentioned information to know what is considered favorable by most banks:
- Favorable work experience for salaried professionals is two years with a minimum of 1 year in the current company
- Five years of experience in the existing business for business owners
- Three years of work experience for self-employed professionals
Understanding these requirements in detail before applying for a loan will improve the chances of approval of your application. If the above-mentioned factors are in your favor, you can negotiate with the lender to get better loan terms. To get more details regarding personal loans, kindly visit Apnapaisa and get in touch with our service experts.