What is Loan?
A loan is some amount of money that an individual can borrow from a bank or online lender for personal use. a loan provides funds that can be used for various purposes like travel expenses, marrige, medical emergency etc. Loans are secured and unsecured, Loans that require collateral such as a home or a car to secure the loan is called secured loan.
How to get Loan ?
Your credit score/history plays a crucial role in determining your loan eligibility.A higher credit score improves your chances of loan approval and may also help you secure more favorable interest rates.
What is loan Eligibility Criteria?
The eligibility criteria for loans in India may vary between one lender to another lender. Here are some factors to be eligible borrower.
- Age - Borrowers age must be between 21 years to 60 years.
- Employment - Bank or Loan provider company prefer borrowers who have a stable employment history (job, Business etc).
- Income - Bank or Loan provider company assess your income to ensure you have the capacity to repay the loan. The minimum income requirement can vary around Rs. 20,000-25,000 per month.
- Credit Score - A good credit score shows your creditworthiness and ability to manage debt. Most banks prefer borrowers with a credit score of 650 or above (on a scale of 300 to 900).