You might have to take a personal loan again and again, if you are also making this mistake then you will have to face bad consequences in future.
Business News Desk – Personal loan is also called emergency loan because it is easier to get than other loans. If you are in great need of money and cannot arrange it from anywhere, then you can easily arrange the money through personal loan. But if you take personal loan again and again, it can also harm you. Repeatedly taking personal loan can spoil your credit mix and this affects your CIBIL score, that is, your credit score can also get spoiled. Due to this you may face difficulties in taking loan in future. Know what is credit mix and how it affects your CIBIL score?
what is credit mix
Your credit mix is determined by how many unsecured loans and how many secured loans you have taken earlier. Personal loan comes in the category of unsecured loan, that is, to take it you do not have to mortgage any property etc. with the bank. If you have repeatedly taken unsecured loans in the form of personal loan or credit card, but have not taken much secured loan, then this sends a message to the bank that you are short of funds and your dependence on credit is very high.
This has a negative impact on your CIBIL score and may worsen your credit score. But if you have been taking both secured and unsecured loans when needed and have paid them all on time, then your credit mix remains balanced and your CIBIL score improves. This is the reason why most experts advise against taking unsecured loans.
What is the eligibility for personal loan?
If you are employed and your age is 18-60 years, then you can apply for a personal loan. At the same time, the age of non-employed people should be between 21-65 years. However, age criteria may vary from bank to bank.
Minimum income for personal loan may vary from bank to bank/NBFC. For personal loan in most banks, the minimum salary of employed people should be Rs 15000 per month.
Your credit score must be 750 or more. If it is less than this, you may face difficulty in getting the loan or the interest rate may be higher.
If you have been working in an organization for at least one year, you can be eligible for a personal loan. At the same time, you can be eligible for a personal loan if you work in the business for two continuous years.
