These days everything has eligibility criteria, be it applying for a job or getting married. There are a few boxes that need to be ticked so that you know the repercussions of the decision are going to take. This is how life works.
Now, this scenario is also true while applying for personal loans.
Just as you check out lenders before you apply for personal loans, the lenders, too, want to check you out before they extend personal loans. Their first checkpoint is to prescribe the eligibility conditions that you must satisfy before they can approve your application for a personal loan. They need to do this so as to assure themselves you are capable of prompt repayment of your loan with them. For instance, if you are not of legal adult age, it doesn’t make sense to extend loans to you. Similarly, if you don’t have a confirmed source of income, you are unlikely to get the loan.
Once you meet the eligibility conditions you can proceed to the next stage of the personal loan process which will take into account various other factors.
Let’s see how you can check your personal loan eligibility.
Category of borrowers
Lenders like Tata Capital categorize borrowers like you into 3 broad categories – salaried individual, self-employed businessperson running a business of trading, manufacturing or rendering services, and self-employed professional offering professional services.
Based on these broad categories, lenders set different eligibility conditions for each category. They do this because the parameters for arriving at the personal loan eligibility conditions are different.
Typically, lenders put up the eligibility conditions on their website so that you can check them out and decide whether you are eligible or not. Most lenders such as Tata Capital also offer a tool on their website which you can use to quickly check the eligibility. This is usually provided as a ‘Check Eligibility’ button on the website. On clicking the button, you will view a web page which seeks your basic information. You can enter your particulars and the tool takes you through other steps to finally arrive at the maximum personal loan eligibility.
Eligibility Conditions for Personal Loans
The personal loan eligibility conditions that are different for different categories of borrowers of personal loans are as follows.
- Identity proof – Voters ID, Passport, Driving License
- Address proof – Ration Card, Electricity Bill, Passport
- Bank statements – for the latest 3 months
Apart from the common eligibility conditions as above, the personal loan eligibility conditions that are different for different categories of borrowers are as follows.
- Salaried employee
If you are a salaried employee you need to satisfy conditions that include
- Identity proof – Voters ID, Passport, Driving License
- Address proof – Ration Card, Electricity Bill, Passport
- Bank statements – for the latest 3 months
- Age – 21 to 58 years
- Employment certificates – 2-year employment continuity document
- Salary slips – for last 3 months
- Income limit – minimum income of Rs 20,000 per month
- Loan limit – Rs 75,000 to Rs 15 lakh
- Loan tenure – 12-72 months
- Self-employed businessperson
If you are a self-employed businessperson you need to satisfy conditions that include
- Identity proof – Voters ID, Passport, Driving License
- Address proof – Ration Card, Electricity Bill, Passport
- Bank statements – for the latest 6 months
- Age – 25 to 65 years
- Continuity of business proof
- Income limit – minimum income of Rs 2 lakh per annum
- Income proof – latest ITR, CA certified balance sheet and P/L statement for last 2 years
- Loan limit – Rs 75,000 to Rs 15 lakh
- Loan tenure – 12 to 48 months
- Self-employed professional
If you are a self-employed professional you need to satisfy conditions that include
- Identity proof – Voters ID, Passport, Driving License
- Address proof – Ration Card, Electricity Bill, Passport
- Bank statements – for the latest 6 months
- Age – 25 to 65 years
- Education proof – highest professional degree certificate
- Income proof – latest ITR, CA certified balance sheet and P/L statement for last 2 years
- Income limit – minimum income of Rs 2 lakh per annum
- Loan limit – Rs 3 lakh to Rs 20 lakh
- Loan tenure – 12 to 48 months
As mentioned earlier, you can assess your eligibility by clicking on the ‘check eligibility’ button on the website to determine the amount of loan you are eligible for based on the particulars you have furnished.
