Planning to take a personal loan? Existing loans impact borrowing capacity

Your credit score and the company you work for also have an effect

Bindisha Sarang
Last Updated at February 24, 2020 02:27 IST

EMIs of existing loans can reduce the eligibility for getting a new personal loan.

Loan eligibility for salaried employees depends on factors such as age, salary and work experience.
Personal loans to self-employed professionals like charted accountants, doctors and businessmen are classified as business loans.
EMIs of existing loans can reduce the eligibility for getting a new personal loan.
Transfer existing loans to lower rates and reduce your EMIs. This will increase your eligibility for a new personal loan.
The company you work for impacts your loan eligibility. Working with a well-established firm affects it positively.
Banks prefer borrowers with credit score of above 650.

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