Factors Affecting Citibank Personal Loan Eligibility That You Should Know

Life can throw different challenges to you at different points in their lives. Many times, you will need urgent money to deal with these challenges. It may be possible you may not have money at that time. That's where a Citibank Personal Loan can help you. With this loan facility, individuals can opt for the loan amount at an affordable rate of interest. Here comes the important factor that many people tend to ignore when going for a personal loan. People who don’t keep the factor of interest rates in check end up paying a huge amount later.

Let us tell you why? When you opt for a personal loan, you will need to pay a fixed monthly installments i.e. EMI amount. And Citibank Personal loan interest rates directly affect your EMI amount. The higher the interest rates of your personal loan, the higher will be the repayment amount. So, you should keep a close eye when choosing the personal loan interest rates. That's why we will be telling you about the factors that affect personal loan eligibility so that you understand it better. You will be in a better situation to choose lower rates after going through this article. Keep reading to know more!

Let's know the Factors affecting Personal Loan Eligibility in detail!

As we said earlier there are a few factors that affect your personal loan eligibility such as Monthly Income of an Individual, Residing Location, Employment Type, Existing Obligations, and Credit Score. We are showing all of them in detail. Have a look!

Monthly Income

Individuals with higher monthly income will have higher chances of getting a higher loan amount as compared to individuals with low income. Let's understand why? People with higher income can easily repay their Citibank Personal Loan as they have the higher disposable income towards repayment. Citibank also tends to provide lower interest rates to individuals who have a higher monthly income.

Existing Obligations

If an individual has a higher existing obligations in form of Credit Card or Loan EMIs, he or she will be able to get a lower loan amount as compared to individuals who have fewer or nil obligations. So, before applying for a Citibank Personal Loan, you should clear off your current debts so that you can easily get the desired loan amount.

Credit Score

One of the most important factors that define your Citibank Personal Loan Eligibility is your Credit Score which is a 3-digit number which represents your creditworthiness ranging from 300 to 900. People who have a good credit score (750 or above) do have higher chances to get a higher loan amount as compared to individuals who have a poor score (below 650). A good credit score indicates that individuals have been repaying their EMIs on time. On the other hand, it would be difficult for an individual who has a habit of missing their EMI payments regularly.

So, whenever you are going to apply for a Citibank Personal Loan, you should keep these factors in mind. Also, remember to opt for the loan amount according to your monthly income and repayment capacity so that you don't end up being a default. Repaying your EMIs on time can also improve your credit score over the time.