Personal loan eligibility: What are the key gender-specific criteria?

This kind of idea leads to very crucial discussions in terms of equality and justice regarding the potential stereotypes in gender-based prerequisites for loan criteria in the finance industry. Here we will discuss the various eligibility criteria based on gender and ways to improve your gender-based loan eligibility.

Personal loans

Personal loans are a type of unsecured financial product. A personal loan can be used for just about any purpose, including debt relief, emergency medical care, education, vacation, or home improvement. Because personal loans do not have security requirements as secured loans do, the most important factor to determine whether or not a person will be approved for it and at what interest rate is his creditworthiness.

Hence, knowing the general eligibility criteria beforehand would be essential so that one could have better chances of approval and favourable terms: age, income, work history, credit score, and existing liabilities.

Gender specific eligibility criteria on personal loans

For men (salaried individuals)

To be eligible for personal loans, you must fulfil the following requirements:

• Age group: 18 to 60
• Income: The minimum income each lender demands is ₹15,000 per month.
• Work experience: At least one year of work experience, though some lenders demand more
• Credit score: A credit score of 700 or above is preferred.

For men (self-employed individuals)

To be eligible for personal loans, you must fulfil the following requirements:

• Age group: 21–65
• Income: According to the lender, the minimum income is ₹15 lakh per year.
• Business existence: Typically three years or more, though some lenders demand a longer history.
• Credit score: At least 700.

For women (employed individuals)

To be eligible for women's personal loans, you must fulfil the following requirements:

• Age: 21 - 58
• Minimum monthly salary: ₹ 15,000.
• Income proof: Required
• Citizenship: The applicant should be a citizen of India.

For women (housewives)

• Eligible to apply as long as they have a co-applicant meeting the eligibility criteria, such as high credit score, regular income and genuine KYC documents.

How to improve your personal loan eligibility?

You can boost your chances of getting a personal loan by following these tips:

1. Maintain a high credit score: Keep your score above 700 for better chances of approval.
2. Fix credit report errors: Detect errors in your credit report that might have harmed your credit score.
3. Compare loan options: Seek proposals from a half-dozen to a dozen banks as well as multiple NBFCs.
4. Avoid multiple applications: Applying for several loans at once may raise the red flag of lenders about your financial stability.

Even though gender-based loan requirements are intended to provide a solution to specific problems, like encouraging female entrepreneurs or providing women operating in male-dominated industries, it creates important issues: the potential biases are not dispelled but strengthened through differentiating criteria. While addressing the needs of each individual, uniform eligibility criteria can ensure equal treatment.

In conclusion, personal loans are, after all, useful financial instruments; however, they often have a relatively higher interest rate than secured loans, making borrowing more expensive in the long run. Focus on financial stability, and when considering a loan, ensure it does not weigh down but is actually a stepping stone.

(Note: Raising a loan comes with its own risks. So, due caution is advised)