The following are the eligibility criteria for Cosmos Bank Personal Loan:

• Salaried individuals, self-employed individuals/professionals and businessmen are eligible for the loan.
• Salaried individuals employed with State/Central Government Organizations, PSUs, Companies of repute, MNCs, Reputed educational institutions are eligible for the loan.
• A minimum of 2 years of overall work experience with a minimum of 1-year work experience in the current organization is required for salaried individuals.
• A business vintage of at least 2 years in the present line of activity is required for the self-employed.
• A satisfactory credit score, preferably over 700 is required.

The following are the factors affecting the eligibility of Cosmos Bank Personal Loans:

Income: The net income of the borrower i.e., the income after statutory deductions and regular expenses incurred for sustenance like rent, utility bills, food bills, etc., and EMI payable for existing loans, if any from the gross income is very crucial for the assessment of eligibility of a personal loan. This gives an idea to the lender about the affordability of the borrower towards the proposed EMI. There is a stipulation of percentage of net income to gross income after providing for the proposed EMI, which has to be met with to be eligible for the loan. Normally it ranges between 30% to 50% depending on the lender.

Age: Unlike other loans like home loans where the repayment period is for over 20 years, the age of the borrower does not affect the eligibility to such a great extent since the repayment period does not go beyond seven years. However, a regular income with a minimum work experience of 1 year in the current employment is very essential. Even here, if the borrower is approaching the retirement age, the eligibility will come down since the EMI will be higher. So, the younger the borrower, lower will be the EMI and higher will be the eligibility.

Nature of employment: Both salaried individuals and the self-employed are eligible for Cosmos Bank Personal Loan. A regular source of income is very essential to get an approval of the loan. The institution you are working with is equally important. Salaried individuals employed with Government Organizations, Reputed Companies, MNCs, Reputed Educational Institutions are viewed as borrowers that are more reliable and are more likely to get approval of the loan. A work experience of at least 1 year with the current employer.  To convince about the stability of income, the self-employed should have an established business that is profit making and should have existed at least for a period of 2 years.

Debt to Income Ratio: This ratio is very crucial in assessing the personal loan eligibility. The required ratio ranges from 30% to 50% depending on the lender. This ratio is calculated based on the existing commitments that have to provide for from the monthly income. The commitments include the mandatory expenses like the rent, utility bills, existing EMIs etc. The lender arrives at the residual amount to gauge if the proposed EMI can be provided for while maintaining the debt to income ratio stipulated.

Credit Score: Credit Score is a mirror of your financial discipline. The credit history has details of the number of loans availed, the type of loans availed, discipline in repaying the loans on the due date. All these factors are important to assess the responsibility of the borrower towards monetary commitments. The higher the score, the higher will be the eligibility and chances of getting the loan approval.  Applicants with higher credit score have the advantage of higher loan limit along with concessions in the rate of interest and other charges. They are considered as low-risk borrowers and are in great demand as borrowers in the banking scenario.

Relationship with the bank: It is easier to get a loan if you have a long-standing relationship with the Bank with a good track record. Your past transactions with the bank will prove your credibility which is a great advantage to improve chances of approval of the loan.

You can improve the eligibility for Cosmos Bank Personal Loan by following a few tips.

Improve your credit score: Credit Score is a very crucial factor while assessing the eligibility of a personal loan and to get the approval for a personal loan. There are certain aspects that impact your credit score and if you take care of these aspects you can improve your credit score.

First and the foremost check your credit score. If the score is below the satisfactory level then you should work towards improving the same. Here are a few things you have to follow to improve the score.

• Make the payments of EMIs regularly well before the due date. Nowadays, with the provision to link the EMI payments to your credit cards, the payment automatically can be done on the due dates. This will avoid missing out on EMIs if you have several loans and you cannot remember the due dates of all of them.
• Clear all the short term loans and credit card dues before approaching the bank for a personal loan.
• The foreclosure also should be done on a selective basis since foreclosure of all the loans can impact the credit score negatively. Closing long-term loans is not a good idea. If your credit history shows long term loans being repaid regularly, the credit score will improve.
• Check your eligibility before applying for any loan. Rejections of loan applications can have a negative impact on your credit score.
• Manage the usage of the credit card limit between 30% to 40%. Usage of the credit card limit to the maximum level is an indicator for your financial crunch and the banks infer that you are depending on credit for your expenses which is not viewed favourably.
• Do not resort to making the minimum payment due towards the credit card. Always clear the entire dues as indicated in the credit card statement. This will not only help you to take advantage of the interest-free period but also will improve your credit score.

Provide details of other income sources: Income is the main factor deciding the eligibility of the personal loan. Higher the income, higher will be the eligibility. If the residual income after providing for the mandatory expenses is higher the repayment capacity will be gauged as being higher and the eligibility will also be higher. You can provide the details of other income sources like interest on fixed deposits, rental income, dividend on shares etc., to improve the income factor. The bank will be convinced that you will be able to make the payment of the EMIs regularly and will be ensured of the recovery of the loan.

Ensuring the eligibility for a loan is very essential before approaching the bank to avoid rejection of the loan application. You can check the eligibility either by visiting the bank or through the website of the bank. Checking the eligibility using the MyMoneyMantra Calculator has its own advantage. 

• You can check if you are eligible for a loan or not without having to take the assistance of any financial advisor. You can do the eligibility check by using the EMI calculator. All you have to do is provide the desired loan amount, the loan tenure, and the rate of interest and the EMI will be calculated instantly. You can get the assistance of the loan experts of the MyMoneyMantra to do the eligibility calculations if you are applying for the loan through MyMoneyMantra and using the EMI calculator on their website. They will advise you in accordance with your income level, repayment capacity, and your requirement. They will do all the calculations which will in turn save your valuable time. The eligibility confirmation will ensure the approval of the personal loan.
• You will have the advantage of choosing from various quotes that will be displayed on the website once the details required are provided by you while applying for the loan through MytMoneyMantra website. You can check the eligibility several times using the MyMoneyMantra calculator with the various offers available from different lenders. You will definitely find a deal that will suit your requirements. The chances of rejection of your loan application will be remote since you can find a loan plan that will suit your budget.
• Applying for the loan after a thorough eligibility check and after choosing the loan plan that suits your budget, will improve the chances of the loan approval. Rejection of a loan application will impact negatively on your credit score. By ensuring the loan approval by choosing the right plan you will be improving your credit score.

The EMI calculator available on the website of MyMoneyMantra is very user-friendly and all you have to do is follow some simple steps to check your eligibility. The tools on MyMoneyMantra can be used for free.

• Access the MyMoneyMantra website.
• Choose Personal Loan from the loans option on the home page of the website.
• Provide mandatory details like the name, gender, employment status, monthly income, email address, and mobile number.
• You can then choose the Eligibility Calculator, which gives you several options.
• The first option is the income and then the EMI.
• If you have calculated your affordability, then you can key in the affordable EMI. Else you can opt for zero.
• Then you can choose the expected interest rate and loan tenure.
• Once all these details are provided the eligibility calculator will decide if the loan plan suits your requirement or not.
• You can use the tool as many times as required until you arrive at the loan plan that suits you.

The following are the documents required for Cosmos Bank Personal Loan and have to be submitted along with the relevant application form and 2 passport size photographs.