When you're in need of some extra cash for various purposes like consolidating debt, paying for emergencies, or funding a project, a personal loan could be a solution. However, getting approved for a personal loan isn't guaranteed. Lenders assess several factors to determine if you're eligible for a personal loan. Let's explore what determines personal loan eligibility.

Credit Score:
One of the primary factor’s lenders should consider is the credit score. Your credit score reflects your creditworthiness based on your credit history. It's a number between 300 and 900, with higher scores indicating better creditworthiness. Lenders prefer borrowers with higher credit scores as they're considered less risky. Typically, a credit score above 700 is considered good for personal loan eligibility.

Income:
Your income plays a crucial role in determining your ability to repay the loan. Lenders assess your income to ensure you have sufficient funds to make monthly payments. A steady source of income increases your chances of loan approval. Lenders may request documents such as pay stubs or tax returns to verify your income.