Personal loans are no less than saviours in times of financial distress. Simple eligibility criteria, easy application process and instant disbursement of funds make it one of the most convenient loan options. At Hero FinCorp, we ensure that you face no hurdles at any step. We have kept our eligibility requirements minimal so you can easily access funds just when you need it the most.
An urgent need for funds can arise at any time. In such situations, having to run from pillar to post to raise funds can be stressful and may have an ill-effect on your health. To help and support you in such times, we have simplified and streamlined our eligibility criteria for personal loans. For easier loan processing, we have kept our personal loan eligibility for self-employed different from that for salaried individuals. Let’s look at Hero FinCorp’s eligibility for personal loans in more detail:
You must be between 21 to 58 years of age.
You must be an Indian citizen to apply for a Rs 3 Lakh Personal Loan at Hero FinCorp.
An applicant must have a minimum experience of 6 months if they are salaried, and if self-employed, the business should be in existence for at least 2 years.
You must earn a minimum of Rs 15,000 per month to qualify for a Personal Loan.
You can apply for the maximum loan amount of Rs 3 lakh
Flexible repayment tenure up to 36 months.
You can visit our Personal Loan section to review our eligibility conditions and see if you meet them. These include basic criteria like age, employment, income, work experience, credit history, etc. Once you are sure you can fulfil our Personal Loan eligibility conditions, use our eligibility calculator to know your maximum Personal Loan limit. Here is a stepwise process to check your eligibility for a Personal Loan:
Credit bureaus and lending institutions calculate your eligibility for a Personal Loan based on several factors, including age, credit history, income, financial obligations, geographical location, housing situation, etc. If you fulfil our Personal Loan eligibility criteria, we may calculate your Personal Loan amount eligibility using any of these two methods:
In this method, we calculate your Personal Loan salary amount based on a predetermined multiple of your net monthly income.
We assess your repayment capacity using this method to check your Personal Loan eligibility. We consider your fixed expenses, including your existing EMIs, and subtract them from your monthly income. The formula is:
FOIR = (Sum of Current Obligations/Net Monthly Salary) x 100
Your debt-to-income ratio should be at most 40% to obtain a loan with favourable terms and rates.
Since personal loans are unsecured loans, your personal loan eligibility depends on your profile. We consider the following factors while assessing your application for a personal loan:
Age reflects your earning potential, making it an important factor influencing your personal loan. Young individuals have a higher earning capacity than retirees or elderly people. However, at Hero FinCorp, anyone within the age of 21 years and 58 years can apply for this loan.
Although you need a monthly income of Rs 15,000 only to qualify for a personal loan, if you have a high income but are lacking in one or two areas, your application may still be approved. This is because high income makes your profile less risky.
When we check personal loan eligibility, your credit report is the first thing we assess thoroughly. It helps us in understanding your previous loan history and your repayment pattern. If we find that you have defaulted on your previous loans and have poor EMI payment history, we may not accept your loan application.
When evaluating personal loan eligibility for salaried employees, we check the soundness of your employer. Working for a reputable company or government organization ensures timely salary credit and employment security, making your profile less risky and boosting your personal loan amount eligibility.
Whether you are salaried or self-employed, your occupation stability plays an important role in your personal loan eligibility. Individuals who frequently change jobs or businesses have a slim chance of loan approval compared to individuals with stable employment.
Another important factor that influences whether or not you are eligible for a personal loan is your current debt. Regardless of how high your income is if the major part of your income is used for debt repayment your prospects of getting a personal loan are minimal. In general, a debt-to-income ratio of less than 50% is considered good.
Calculating personal loan eligibility only to discover that you are ineligible for the loan or that the amount you are qualified for is insufficient to satisfy your financial crisis can be discouraging. Here are some ways to improve your eligibility for personal loans:
If you have a low income, apply for a personal loan with longer repayment term. Longer terms mean lower EMIs, increasing your personal loan eligibility and making it easier on your wallet also.
If you have an additional source of income such as rental income or investment income, you must disclose it while applying for a personal loan. This will not only boost your personal loan eligibility but will also help you in receiving better loan conditions.
When in dire need of cash, avoid applying for multiple personal loans simultaneously. This can harm your reputation, leading to loan rejections. To maximize success, assess eligibility with various lenders online, and solely apply with your preferred one.
A bad credit report not only makes you ineligible for personal loans, but also makes you ineligible for other types of loans as well. Therefore, before applying for a personal loan, it is advisable to pay off any previous default debts and start paying your ongoing EMIs on schedule.
If you desperately need funds but have an average credit report or earn a low monthly income, consider adding a co-applicant. Adding a high-income co-applicant to your loan application will increase your loan eligibility and help you secure better loan terms.
Personal Loan
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