If you are looking for funds to meet a large unexpected expense or if you wanted to take that foreign vacation that you were longing for or maybe you want simply to consolidate your multiple small loans, all of that is possible with a Personal Loan. Personal Loans are an important source of funds to address many requirements. Personal Loans are unsecured loans, i.e., not secured by any collateral unlike your Home Loan or Vehicle Loan. Therefore, banks and Non-banking finance companies (NBFCs) that offer Personal Loans scrutinise Personal Loan applications more carefully. They look at your credit score, employment history, your current income, repayment capability based on present outflow on other existing loans and your repayment track record.
Please continue to read further to learn more about how banks and financial institutions evaluate different factors to determine your Personal Loan Eligibility.
Your Credit Report and Credit Score