How to Qualify for a Personal Loan (Without Putting Up Collateral)
- Check your credit score.
- Order a copy of your credit report.
- Pay your bills on time.
- Pay down your debt.
- Show you have a stable income.
- Submit a joint application with a creditworthy cosigner.
- Find the right lender.
How do I know if I qualify for a personal loan?
The minimum age limit to apply for loan should be 21 years. Maximum age can go up to 60 years (salaried employees) and 65 years (self employed) at the time of loan maturity. However, age varies from bank to bank. Your monthly income to get personal loan should be at least Rs. 25,000.
What credit score do you need to get a loan?
To qualify for a personal loan, most lenders require that you have a minimum credit score, often somewhere between 580 and 600. Tip: If you’re not sure about the minimum credit score requirement for a particular lender, ask before applying.
What do banks look at when applying for a loan?
When you apply for a loan, you authorize the lender to run your credit history. The lender wants to evaluate two things: your history of repayment with others and the amount of debt you currently carry. The lender reviews your income and calculates your debt service coverage ratio.
How long does it take to get approved for a personal loan?
It can take anywhere from one day to a few weeks, depending on the type of lender you go with. When you need extra money, knowing how long the loan process takes from start to finish helps you manage your expenses.