India’s personal lending segment has experienced immense growth of late, owing to the financial product’s flexibility and affordability. Lenders facilitate access to quick funds in the form of personal loans to address the urgent financial shortcomings of customers. Moreover, with the policy rates, as determined by the Reserve Bank of India, hitting an all-time low, the chargeable interest rates on personal loans have also been considerably lowered. Low interest personal loans are now available to everyone, given that he/she satisfies the specified eligibility terms.
Now, the interest rates and eligibility criteria are likely to vary from one lender to another. Various lending institutions have also made online tools like personal loan eligibility calculators available to better understand loan prerequisites. This further helps an applicant to gauge his/her current loan eligibility and improve it if required.
Eligibility terms for low-interest personal loans
Low-interest on personal loans help borrowers repay the amount conveniently. If you wish to avail these funds at the least possible interest rate, you must adhere to the designated eligibility requirements. The criteria, as set by financial institutions, can include parameters like age, income, nationality, credit history, etc.
Following is a look at the basic eligibility requirements to avail unsecured personal loans against the best interest rates –
Salaried individuals applying for a personal loan must be aged between 23 and 55 years to qualify for a low interest personal loan. Age is one of the primary factors in determining loan eligibility because it assesses a person’s capability to repay the loan. An applicant’s age also helps determine when it is the ideal time to avail a personal loan.
Salaried individuals seeking a personal loan must be working for a multinational company (MNC), or any other private or public company.
This is the most basic parameter to avail low interest personal loan. The applicant must be an Indian resident to borrow such loans in India.
- CIBIL score
CIBIL or credit score is assigned by TransUnion CIBIL based on an individual’s credit behaviour, performance, history, etc. It ranges between 300 and 900. You need to know how CIBIL score is crucial for availing a personal loan to determine your chances of instant approval. If you are aiming for a low interest personal loan, you must maintain a CIBIL score above 750. If your score is below this mark, you can look for ways to improve it.
Alongside these parameters, you must also take personal loan documentation requirements into consideration. You can improve personal loan eligibility by updating, organising, and keeping your documents ready for submission. Documents required for a personal loan include KYC papers, salary slips, bank account statements, etc.
You can now back your loans with pre-approved offers. Extended by reputed lending companies, like Bajaj Finserv, these offers are designed to facilitate an easy and hassle-free credit application process. These offers are available on several financial products and services like personal loans, credit cards, business loans, etc. To check your pre-approved offer, you only need to enter your name and mobile number.
The primary strategy to avail a low interest personal loan is to convince the lender of your repayment capability. Availing the loan with a co-applicant might help you increase the same, thereby lowering interest charges. You must also stay updated about the rate-cuts announced by the RBI to remain updated about the changes in the lending sector.