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Personal Loan Eligibility
Securing a personal loan at favourable terms requires a clear understanding of the eligibility criteria and documents required. At Shriram Finance, we believe in clear communication about our eligibility to help you get approved for our personal loan quickly and without a hassle. Keeping your documents handy and updated can expedite your Shriram Personal Loan application and ensure a smooth borrowing experience.
Check your personal loan eligibility and read more to understand what you need to enhance your chances of loan approval.
Factors that Affect Personal Loan Eligibility
Several key factors influence your eligibility for a personal loan. Understanding these factors can help you prepare for a successful application:
Income
Your income stability is a significant factor that determines your loan eligibility. To improve your chances of approval, keep proof of stable income handy.
Credit Score
The higher the credit score, the better are your chances for loan approval. A credit score of above 750 is usually considered ideal for a personal loan application.
Age
You must be at least 21 years at the time of loan application and not more than 60 years at the time of loan closure. This range ensures you have income stability and enough time to repay the loan.
Employment Stability
A consistent work record is usually preferred for a personal loan application as it indicates reliability. Try to demonstrate at least a year of employment stability to improve your chances of approval.
Current Liabilities
Existing monthly EMI payments and financial obligations are assessed to determine if you can handle additional loan repayments. Try to keep your debt-to-income (DTI) ratio, which is your monthly debt compared to your total income, within 30-40% to show that you can make EMI payments comfortably.
Eligibility Criteria for a Personal Loan
Take a look at the eligibility criteria of Shriram Personal Loan here to ensure a smooth borrowing experience:
Eligibility Criteria
Age- 21 - 60 years (at the time of loan closure)
Who Can Apply?- Resident Indians
Employment Type- Salaried/Self-employed
Documents Required for a Personal Loan
To secure a Shriram Personal Loan, ensure you have these documents in place:
Required Documents
Identity Proof- Aadhaar card
- Passport
- Voter ID
Address Proof- Passport
- Driving Licence
- Utility Bills, like gas bill, water bill, etc.
Income Proof- Salary slips for the last 3 months
- Other income proof documents for the last 3 months.
Other documents- Recent passport-sized photos
- Bank Statement for the last six months
- One Cancelled Cheque and ACH form for Electronic Clearing Mandate (eNACH)
Personal Loan Eligibility Criteria for Salaried and Self-employed Individuals
- Salaried:
The eligibility of salaried individuals depends on factors like age, credit score, income stability, professional experience, etc. You will also need to be between 21 and 60 years of age.
- Self-Employed:
Personal loan eligibility criteria for self-employed individuals also consider income proof, like your latest Income Tax Returns, and other income proof documents of the last 3 months. Other basic eligibility criteria like credit score requirements and age remain the same.
- Salaried:
Tips to Improve Personal Loan Eligibility
Here are a few tips to improve your eligibility for a personal loan:
Try not to apply for too many loan applications at the same time as it can negatively impact your credit score by triggering multiple credit inquiries.
Clear your debts as much as possible and keep your DTI ratio within 30-40%. Lowering your DTI ratio can make you appear financially stable and capable of handling additional debts.
Aim to have a credit score above 750 to enhance your chances of personal loan approval.
If you are not sure about your financial and credit profile, try applying with an eligible co-applicant with strong financial and credit profiles.
Always submit complete and updated documents to avoid any delays in approval.
Showing steady income makes you an appealing applicant as it reassures lenders, including Shriram Finance, of your ability to repay the loan.
Personal Loan Eligibility FAQs
Which documents are required for a personal loan from Shriram Finance?
The documents required for a personal loan from Shriram Finance typically include identity proof, address proof, passport-size photos, cancelled cheque and ACH form for Electronic Clearing Mandate (eNACH), and any other additional documents as may be required by Shriram Finance.
What are the eligibility criteria for a Shriram Personal Loan?
The eligibility criteria for a Shriram Personal Loan requires you to be a resident Indian between 21 and 60 years of age. You should also be either salaried or self-employed and demonstrate proof of a steady income.
How can I calculate the personal loan eligibility amount at Shriram Finance?
The loan amount you will be eligible for depends on factors like your credit score, age, income and employment stability, and Shriram Finance’s internal policies. Meeting all the criteria can help you secure a higher loan amount.
How much personal loan am I eligible for with Shriram Finance based on my salary?
The amount of personal loan you are eligible for from Shriram Finance depends on not just your salary but also your existing debts, credit score, age, etc. Aim to demonstrate a stable income, maintain a good credit score, and lower your DTI ratio to improve your chances of a higher loan amount.
What is the personal loan eligibility for salaried employees at Shriram Finance?
Personal loan eligibility for salaried employees includes being an Indian resident between the age of 21 to 60 years and having a steady source of income. The specific minimum income requirements may vary.
Will I have to pay a fee to check my loan eligibility with Shriram Finance?
No, you do not have to pay any fee to check your eligibility for a Shriram Personal Loan.
What are the factors that affect my eligibility for a personal loan from Shriram Finance?
Factors affecting your personal loan eligibility include age, residency, employment status, income, credit score, and DTI ratio.
How does my current debt status affect my eligibility with Shriram Finance?
A high DTI ratio may reduce your chances of loan approval with Shriram Finance. To enhance your chances of approval, try to keep your DTI ratio within 30-40%
Will I be eligible for a personal loan even if I have bad credit?
Yes, you may still qualify for a Shriram Personal Loan even if you have bad credit, as long as you meet the other eligibility requirements. Final approval will depend on Shriram Finance’s internal policies.
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