Age
You must be between 21 to 58 years of age.
Personal Loan Eligibility
Personal Loans are unsecured loans that do not require collateral, so lenders rely on the applicant meeting the eligibility criteria. At Hero FinCorp, the personal loan eligibility requirements are simple. Just meet the criteria for age, citizenship, income, credit score, and work experience, and you are ready to apply.
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:
Citizenship
You must be an Indian citizen to apply for a Rs 5 Lakh Personal Loan at Hero FinCorp.
Work Experience
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.
Monthly Income
You must earn a minimum of Rs 15,000 per month to qualify for a Personal Loan.
Maximum Loan Amount
You can apply for the maximum loan amount of Rs 5 lakh
Maximum Loan Tenure
Flexible repayment tenure up to 36 months.
How To Check Your Personal Loan Eligibility?
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:
How Is Personal Loan Eligibility Calculated?
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:
- Multiplier Method
In this method, we calculate your Personal Loan salary amount based on a predetermined multiple of your net monthly income.
- FOIR (Fixed Obligations to Income Ratio)
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.
Factors Affecting Personal Loan Eligibility Criteria
When considering a personal loan, it's crucial to understand the factors that affect your Equated Monthly Installment (EMI) amount. Various elements come into play, shaping the final EMI calculation. Explores the key factors that influence your personal loan EMI and their impact on your repayment obligations.
Age
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.
Income
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.
Credit Report
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.
Employer Status
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.
Employment Stability
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.
Debt-to-income Ratio
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.
How to Improve Your Eligibility for Personal Loan?
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:
Longer Repayment Tenure
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.
Alternative Income Source
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.
Multiple Loans
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.
Improve Credit Report
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.
Add Co-applicant
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.
Frequently Asked Questions (FAQs)
To check your maximum personal loan eligibility, you can either visit our nearest branch or can check personal loan eligibility online on our website.
Personal loans in India are available to both salaried and self-employed individuals.
No. At Hero FinCorp, you must have at least a minimum monthly income of Rs 15,000 to be eligible to apply for a personal loan.
Your credit report not only reflects your borrowing history but also helps lenders in determining the level of risk associated with your profile. If you have a history of default loans, it will show up on your credit report, lowering your chances of getting a personal loan.
Before you proceed with your personal loan eligibility check, consider the following factors to see if the lender will take your profile into account or not.
Your age and income
Your credit report
Existing debts
Your employment stability
When you add a co-applicant, the lender will evaluate the individual income of both applicants. As a result, if your income is insufficient, then the co-applicant’s income fills the gap. Adding a co-applicant or co-borrower to your application reduces the risk of lending associated with your profile.
At Hero FinCorp, we offer flexible repayment terms starting at about 6 months and extending up to 3 years. You can use a Personal Loan EMI calculator to opt for tenure with budget-friendly EMIs. Remember, a shorter tenure increases the EMI amount, while a longer-term reduces it. So make your decision wisely.
If you are looking for an online Personal Loan at Hero FinCorp, you can evaluate your expenses and apply for a loan of up to Rs 3 lakh. Check your Personal Loan eligibility online using our loan eligibility calculator and know the maximum and minimum Personal Loan amount you are eligible to borrow.
If you earn at least Rs 15,000 per month, you are eligible for a Personal Loan at Hero FinCorp. However, there are several other factors based on which we determine your eligibility for a Personal Loan, including your credit history, current financial obligations, nature and length of employment, age, etc.
personal loan eligibility Related Blogs
