Living in the metropolitan cities of India has been very expensive. The availability of amenities and services has made the lifestyle high. However, those with a low or average income have always suffered matching up their expenses with their income. This unmatched ratio has often led to borrowing. The debt portfolio is getting improved because there is a rise in loan applications. The loan industry is having more applications than before because individuals are struggling to get their hands on a perfect lifestyle. However, having an instant personal loan is not as easy as it seems. There are few factors and a specified list of eligibility criteria to meet. One of those factors is the applicant’s income. The income of an individual will decide his debt repayment capacity, and hence, loan providers do stress on the income of the applicant that has applied for a loan.
What are the personal loan eligibility criteria?
Apersonal loan in Chennai is very lucrative and makes life easy. That instant availability of funds is only possible with a personal loan. However, no one will offer you money, if there is a risk of being a default. You need to qualify for a personal loan by meeting all the said eligibility criteria. A good credit score and income are the main aspect of eligibility. This speaks about your capability to repay back the amount of the loan. While credit score talks about your credit habit and past credit history, your income speaks about your capability to repay.
How is income an important factor?
Debt repayment: If you have a good income, you can easily pay your debt repayment on time. There will be EMI monthly, and that will not be an issue for you to pay on time. An individual with a good stable income is always an asset for the loan provider. There is no risk in offering a loan to an individual with a high income. Income decides the capacity of repayment, and you can easily borrow one for all your needs.
Income decides EMI: Your income decides your EMI on personal loan for salaried. An EMI is a monthly amount that you pay to your bank to finish off your loan without the tenure. So, your income will decide your EMI amount. If you have a high income, you can go for a high EMI. However, for a low salary, you will have to go for a minimum EMI amount, so that you meet all other expenses.
Income decides loan term: It is the income that decides the tenure. Individuals with high incomes always go for a short-term loan. However, with a low income, it is better to go for a long term as it will give you a low EMI amount monthly. So your income will decide the type and tenure of the loan.
Income decides loan amount: Your income is directly responsible to decide your loan amount. The amount you need may not be offered to you if your income is not high. Based on your income, the loan amount is sanctioned.
Low rate of interest: An individual with high income is always given a low rate of interest as there is no risk of default. Try and get a good income before you enjoy the benefits of a personal loan for salaried.
Wrapping up
A personal loan in Chennai is now easy with Clix Capital. You just need to visit the website and get your application done. It will help you meet all your instant needs.
