There is no doubt about the popularity of SBI Personal Loan when it comes to fulfilling urgent fund needs. Given at affordable interest rates, this personal loan from SBI is one of the often-opted choices among customers. But there is an important thing related to it which every customer should know. This thing is the Eligibility of SBI Personal Loan. You must be thinking about what this eligibility is? Well, it is a set of conditions that a customer needs to fulfill before availing of the loan amount. This may vary from one bank to another bank.
Since a personal loan is an unsecured loan; you don’t need to pledge any kind of collateral against the loan amount, eligibility plays a pretty crucial role in deciding whether a person would get a personal loan or not. There are several factors that also affect SBI Personal Loan eligibility about which we tell you in detail. So if you are someone who is looking to opt for a personal loan and want to know what are those conditions that you will need to fulfill, this article could be a good read for you. First, we are talking about the factors affecting the SBI Personal Loan Eligibility. Let’s get to it.
Factors affecting SBI Personal Loan Eligibility
Now, let’s know about the factors that play a huge role in affecting your SBI Personal Loan eligibility. We are showing them one by one. Please check.
Credit Score and Credit History
To minimize the credit risk (due to the personal loan being unsecured), SBI always checks the credit score of an individual. The chances of getting a personal loan to an individual who has a poor credit score are pretty low as s/he has a bad repayment behavior. On the other hand, people with a score of 700 or above can be easily available for the SBI Personal loan. Such individuals can also get lower interest rates on their loan facilities.
The most common repayment method is Equated Monthly Installments (EMI). This amount will be going from your monthly income. So if you have a higher income, you have higher chances to be eligible for a loan as compared to an individual who has a low income. After checking your income, SBI decides whether you will be able to repay the loan amount on time or not. The monthly income criteria tend to change from one lender to another and also from one city to another.
Your employment type also defines your eligibility substantially. Lenders are more likely to provide a personal loan to salaried individuals. The reason: such individuals get a fixed monthly income on a fixed date with which they can easily repay the loan amount. On the other hand, self-employed individuals may see ups and downs in their businesses.
Age of an Applicant
Young people who have just joined a company or started working have more time to repay the loan as compared to a person who is close to his or her retirement age. That’s why lenders are more likely to provide an SBI Personal loan to individuals with fixed age range criteria and chances are higher for a young earning individual.
So, these are the factors that define the eligibility of your personal loan from SBI. Keep them in mind before applying for it so that you don’t have to face any kind of problem later.