The financial crisis is common to a large number of people in India. Especially in case of expanding an existing business, or starting a new one, or treating someone medically in the family from a serious crisis requires a lot of money, rare for most middle and lower-class families in the country. In this situation loan is an option that can help to handle the situation. But getting a loan is not that easy as one has to undergo various procedures to pass the application for a loan.
The borrower must have some eligibilities, too, to ensure the loan gets passed. For a layman, collecting all such information alone is time-taking and complicated. Several loan distributing agencies work in the industry to help first-time borrowers with all the required information.
Eligibility for approval of the loan
Though a common law or terms and conditions are in practice for any kind of loan across the country, you need to learn the specific terms and conditions of the particular lender organization from whom you are getting the amount. The eligibility criterion comes under these conditions too. Some of the common eligibility criteria for approval of a personal loan are as follows-
- You have to be a citizen of India, aged between 23 to 55. You should have all the necessary documents in support of these statements.
- You have to be an employee of any public or private firm or have your own business. Banks and other financial organization requires the proof that you can repay the loan within the stipulated time.
- Your salary or income requirement must meet the criteria of the leading organizations.
- Your credit score must be good, and you must have paid back or, in the process paying the money back to the lenders if there is any prior loan.
The repayment process includes various other factors such as interest rate, the principal amount, and different other charges. But the most important part is the credit score. The better the credit score will be, the lesser the interest rate will be on your total amount of the loan.
Some lending organizations provide better interest rates than others; you have to find such financial organizations. The financial distributing agencies might be able to help you through intense research. You can also talk with the lending organizations about the interest rate and do some negotiation.
You should also be aware of prepayment and other policies available with the lending banks or other financial organizations. As the amount can help you get tax benefits, you should consult with the financial experts before deciding what amount to repay at a time without creating much trouble.
While planning to take a loan, you must gather all the required information related to the process. You may think that the principal amount and the interest is all that you need to pay. But in reality, you will get to see the different charges getting added now and then, like penal charges, processing charges, statement charges. If you miss any installment, you have to pay extra charges and all. Get all these facts right before you apply for a loan from leading loan distributor companies.