आपके वैयक्तिक ऋण की पात्रता की जांच हेतु चरणबद्ध मार्गदर्शिका

If you want access to immediate cash without providing collateral, a Personal Loan can prove to be an incredible option. With a Personal Loan, you can fund any expense, be it medical emergencies, a dream wedding, long-awaited vacations or home improvement projects. This article explains the eligibility criteria for a Personal Loan, how you can use a Personal Loan Eligibility Calculator and the measures you can take to improve your loan eligibility. Read on.

Personal Loan – An Overview

A Personal Loan is a sum of money you can borrow from banks and Non-Banking Financial Companies (NBFCs) without providing any collateral. It is an unsecured loan, wherein the lender primarily considers your credit score and monthly income to determine your eligibility. You can repay the loan and the due interest in Equated Monthly Instalments (EMIs), over tenures lasting up to seven years. Also, you can use the loan amount to fund various expenses without worrying about any end-use restrictions, subject to same should not be utilized for any speculative purpose.

Personal Loan Eligibility Criteria for Salaried Applicants

As a salaried individual, you must fulfil the following criteria to easily secure a Personal Loan.

• Age: You should be at least 21 years old, whereas your age at the time of final EMI repayment should not exceed 60 years or date of retirement whichever is earlier.
• Nationality: You must be a Resident Indian.
• Employment: You should be employed continuously for a minimum of 1 year with a multinational company (MNC), educational institution, government company, public sector undertaking (PSU), public or private limited company, or partnership or proprietorship firms.
• Minimum monthly income: You need to show a minimum net (in hand) monthly income of Rs 20,000 to be eligible for a Personal Loan.
• Credit Score: You need to show an excellent credit score, usually 701 or more points, to enhance your loan-securing chances.

Personal Loan Eligibility Criteria for Self Employed Applicants

The eligibility criteria for self-employed applicants are slightly different than that for salaried applicants. Below are the requirements.

• Age: You should be at least 21 years old, and your age at the time of final EMI repayment should not exceed 65 years.
• Nationality: You should be an Indian Resident to qualify for the loan
• Profession: You must be a self-employed professional such as a doctor, engineer, chartered accountant, architect, consultant, freelancer, etc., earning a steady income for at least one year with no breaks between jobs. If you are an insurance agent, your business should be at least two years old.

How to check Personal Loan Eligibility?

You can ascertain your Personal Loan eligibility in a few simple steps. You can use a third-party Personal Loan Eligibility Calculator or visit your chosen lender’s website to assess your eligibility. Once you have decided on the lender you intend to approach, you must input these details in the various tabs of the calculator.

• Enter your net monthly income after all the mandatory deductions.
• Enter your city of residence or the PIN code.
• Choose your employer type – whether it is a Government or Private Entity, LLP, PSU, etc., from the drop-down menu.
• Finally, enter your desired loan amount in the last tab of the Personal Loan eligibility calculator.

Once you have ascertained your loan eligibility, you can even calculate the possible EMI payable against the loan amount.

How to use Bank of Baroda’s Personal Loan Calculator?

Follow these three simple steps to calculate EMI on personal loan amount.

• Enter the loan amount you need in the first tab, i.e., the 'amount' section.
• Enter a reasonable interest rate in the 'rate of interest' tab, ensuring it is not below the minimum rate levied by the bank. You can contact your relationship manager to ascertain your eligibility.
• Enter your preferred loan tenure in the 'Loan terms' tab.

The personal loan EMI calculator will display the monthly EMI amount instantly. You can modify the input values until you arrive at an affordable EMI amount. The EMI amount depends on your chosen loan tenure and the interest rate levied by the lender. Longer tenures typically result in pocket-friendly EMIs, but the interest rate on such loans may be higher.

Features and Benefits of a Personal Loan Offered by BOB

Bank of Baroda offers collateral-free Personal Loans to finance your various cash requirements. Following are the salient advantages and features of Personal Loans.

• Higher loan amounts: With Bank of Baroda, you can get up to 20 Lakhs as a Personal Loan without pledging collateral.
• Flexible repayment terms: You can repay your Personal Loan in tenures lasting up to seven years, depending upon age & employment profile of the applicant.
• Competitive interest rates: Bank of Baroda levies competitive interest rates on Personal loans, resulting in pocket-friendly EMIs.
• Multi-purpose end use: You can use the loan amount without any end-use restrictions. For example, you can pay for medical emergencies, plan a wedding, take a vacation, buy the latest gadgets, etc.
• Nominal processing fee: The bank levies a nominal loan processing fee, thus reducing the overall cost of your Personal Loan.
• Hassle-free application and documentation: You can apply for the loan online and offline. The documents required for a Personal Loan are basic and generally include your PAN, ID, address, and income proof documents.
• Speedy disbursals: You can enjoy rapid loan disbursals as the bank credits the loan amount directly into your account within a few hours to a couple of days.

How to Improve your Eligibility for a Personal Loan?

Your Personal Loan eligibility depends mainly on how disciplined you have been with your previous debts and whether you can pay off the new debt. The following are areas you can work on to improve your Personal Loan eligibility.

• Maintain a high credit score

When you take on any debt, the lender passes your financial information to credit information bureaus in your country. These companies gather your debt-related data and rank it between 300 to 900. Lenders consider a credit score above 701 as good. A higher credit score indicates that you have been repaying your dues on time. A consistently high credit score increases your chances of availing of a Personal Loan.

• Reduce your debt-to-income ratio

The debt-to-income (DTI) ratio represents the ratio of your total monthly debts to your total monthly income. Ideally, you want your debt to be no more than 25% of your income. A higher DTI means you have lesser funds to repay the Personal Loan, which leads lenders to potentially reject your loan application or charge a higher interest rate. You can reduce your DTI ratio by either paying off your existing debts or increasing your monthly income.

• Pay off your existing debts, and don't send multiple applications

Existing debts can significantly impact your chances of acquiring a new loan. If the lender finds that your income does not indicate your ability to repay your concurrent debts, they may reject your application. In doing so, you may choose to apply with another lender, but your previous rejection impacts the new application. Multiple enquiries, including hard inquiries make you appear credit hungry which lenders consider a red flag.

• Keep a substantial gap between loan applications

If for whatever reason, a lender rejects your loan application, it impacts your credit score. You should thus work to build your credit score again before applying for a new loan. Experts recommend a 6-month waiting period between two loan applications. Six months should give you sufficient time to take measures to increase your credit score.

• Present all your income sources

Your loan eligibility improves significantly if you can show multiple income sources other than your monthly income. You can provide proof of your passive income sources, such as income from investments, house rent, income-generating hobbies, etc. Presenting all your income sources ensures lenders of your repayment capacity.

Need a Personal Loan? Think Bank of Baroda

Personal Loans are an excellent choice when you need cash instantly. These unsecured loans save you the trouble of providing collateral and are easy to obtain. You can apply for Bank of Baroda Personal Loans online from the comfort of your home. You can even visit your nearest Bank of Baroda branch and apply for the loan. Remember to use the Bank of Baroda Personal Loan Eligibility and EMI Calculators for a convenient loan application process. You can also call our toll-free number 1800 5700 for more information on the suite of loan products we offer.