How do lenders calculate loan eligibility of institutions?

How do lenders calculate loan eligibility of institutions?

Different lending institutions have their specific set of rules, terms and conditions for assessing the loan eligibility of individuals. In general, the creditworthiness of individuals is assessed and calculated based on these factors:

  • Credit Score
  • Annual/ Monthly income (in case of salaried persons)
  • Audited Financials of the Company along with the projected figures. (in case of business owners)
  • Bank statements of the firm and individuals in order to assess cash flows

However, this is for informational purposes only and lenders can take into account other factors to assess your creditworthiness/ loan eligibility.