Compared to secure credit options, Personal Loans are immensely popular. They let you borrow funds without collateral. This relieves your burden of arranging finances in an emergency. Also, you need not wait for long to get approvals. With increased digitisation, most banks offer it online.

You only need to visit their profile and follow the simple steps. However, as this Loan type comes with flexible terms, banks have stringent parameters. They require your profile to be risk-aversive. For this, you need to meet their specific requirements. Knowing the eligibility criteria helps you become prepared. You can also use the tool for Personal Loan eligibility. The reasons to use the tool and check eligibility include:

Fixes credit history

The best part about the eligibility criteria is a credit score. Banks emphasise this aspect as it shows them your creditworthiness. They even disregard other parameters to some extent if you have a higher credit ranking. Hence, ensure you have a favourable rating. Ideally, this ranges between 750-900. Check this by fetching your credit report before applying.

Work on income sources

Your revenue decides your repayment capacity. It impacts the disposable income you have after covering other expenses. For Personal Loans, the minimum income requirement is Rs. 25,000. But the amount you get depends on your qualifications. You can check this by using the Personal Loan eligibility calculator. You can work on building your income sources if the amount is not as expected.

Clear existing debts

Getting a Loan is a huge financial responsibility. This requires you to stay equipped with financial resources. But this applies to the funds remaining after fulfilling your expenses and obligations. If you have any existing debts, your income distribution becomes haywire. It also results in reduced disposable income. This component is included in the eligibility calculator.

Arrange documentation

When you know the eligibility criteria, you automatically understand the paperwork required. For instance, you need income statements to prove your revenue status. The same goes for other parameters. This helps you arrange the required documents beforehand. As a result, you save the trouble of last-minute hassle. With prepared paperwork, applying for Loans online is a smooth process. 

Apply carefully

The common mistake most applicants make is applying to multiple banks. This makes them appear as credit-hungry borrowers. The main reason is not understanding the eligibility criteria and Loan terms. The eligibility calculator eliminates this problem. It shows you bank expectations accurately before Personal Loan apply online.

This way, you apply only to feasible options. This is crucial, as sending out multiple applications affects your credit score.