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Loan eligibility criteria are the standards a borrower must meet to qualify for a loan. These criteria vary depending on the type of loan and the lender, but generally include factors like age, income, employment status, credit score, and debt-to-income ratio. Lenders assess these factors to determine the borrower's ability to repay the loan and the risk associated with lending. Key Eligibility Criteria: Age: Most lenders require applicants to be at least 21 years old and under a maximum age, often 60 or 65, at the end of the loan term. Income: Lenders assess your monthly or annual income to determine your repayment capacity. A minimum monthly income is often required, which may vary depending on the location and type of loan. Employment Status: Lenders typically require applicants to be employed, either salaried or self-employed, with a stable source of income. Credit Score: A good credit score (typically 700 or higher) demonstrates your creditworthiness and repayment history, which are crucial for loan approval. Debt-to-Income Ratio (DTI): Lenders evaluate your DTI, which is the percentage of your gross monthly income that goes towards debt payments. A lower DTI generally indicates a lower risk for the lender. Work Experience: Some lenders may require a minimum work experience, especially for salaried employees, to assess employment stability and repayment ability. Other Factors: Other factors that can influence eligibility include residency, financial obligations, and the purpose of the loan. How to Improve Loan Eligibility: Improve your credit score: Pay your bills on time, reduce your credit utilization, and check your credit report for errors. Increase your income: Consider a side hustle or negotiate a raise to increase your income and improve your repayment capacity. Reduce your debt: Pay down your existing debts to lower your DTI and improve your credit score. Build a strong credit history: Maintain a good credit score and demonstrate responsible borrowing habits. Note: Loan eligibility criteria can vary significantly between lenders and the type of loan. It's essential to research the specific requirements of the loan you are interested in and the lender you are considering. You can use online eligibility calculators offered by lenders like lendingkart finance Axis Bank and HDFC Bank to get a general idea of your eligibility.