6 Pro Tips to Improve Your Personal Loan Eligibility in 2022
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Personal loans often taken to cater to fund shortages during a crisis. The loan unsecured and does not require any collateral. Personal loans can also be used to finance your big-ticket expenses as you can avail of a loan amount of up to Rs 25 lakhs*. However, every applicant’s amount depends on several factors like monthly income, credit score, age, work experience, and existing liabilities. Not being eligible for the loan would lead to rejection of your loan application, and if the loan does get approved it could be for a lower loan amount.
6 Pro Tips to Improve Your Personal Loan Eligibility
If you are currently facing such a situation, you can easily improve your personal loan eligibility through the following steps:
Clear your Existing Debts
If you have any existing debts, that could be why your loan eligibility has reduced. Paying off your current credit card bills and loans will decrease the debt-to-income ratio. A lower debt-to-income ratio increases eligibility, which in turn, increases your chances of a Personal Loan Eligibility.
Keep a Healthy Credit Score
Maintaining a healthy credit score is essential to getting the best eligibility and interest deals. To know your credit score, you will need to register on the CIBIL website and check your scores for a certain fee. Knowing your credit score will help you take the necessary measures to improve it as well. If your credit scores are higher than 750, you considered a credible borrower with a clean repayment record. A lower credit score will classify you as a high-risk borrower, increasing the chances of a loan rejection or lowering your eligible loan amount.
Choose a Tenure Based on Income and Other Factors
Personal loan tenures can start from 12 months and go up to 60 months. Many borrowers choose one year as they want to pay off the loan quickly. While this is sound thinking, the EMI amount to paid every month is high. Use an EMI calculator to know the EMI for different tenures and then depending on monthly and other expenses choose a tenure. Choosing a longer term will lower your EMI, thereby making it easy to repay your loan. Hence this is another way to increase your loan eligibility.
Inform about Variable Pay
Variable pay is the extra benefits your current employer offers you in the form of salary hikes, bonuses, and perks. On informing your lender of these, the debt-to-income ration decreases, thereby, increasing your chances of get a loan approved.
Mention Alternate Sources of Income
If your salary falls short of lenders’ monthly take-home salary requirement, the lender will reduce your loan eligibility. By declaring your extra monthly income. Like high-value returns from deposits, monthly rental, the external income, you can include proof of the same with your documentation and increase your eligibility.
Adding a Co-applicant
If you do not have an additional income, adding a working co-applicant along will increase your eligibility. Quotient on the loan application. You can avail of a joint personal loan. With your parents, working spouse, or siblings to increase your personal loan eligibility. It will ensure the lender that you can repay the loan comfortably without straining your finances.
Now that you are aware of the tips to improve personal loan eligibility, move towards calculating your personal loan eligibility
Personal Loan Eligibility Calculator
Do a personal loan eligibility check to get an approximate amount of the loan requirement. As well as the loan eligibility amount. The personal loan eligibility calculator is a free online tool. That does not require any registration, and the tool is simple and easy to use.
Additionally, you will need to calculate your monthly EMI and check to see if it fits with your budget. This comparison will help determine loan affordability. The better your loan affordability, the improved your personal loan eligibility will improve.
We hope these pro tips will help improve your personal loan eligibility. Cater to small as well as big-ticket expenses. Choose the right lender offering the lowest personal loan interest rates in the market. Along with the best customer service in India. Reach out to the lender’s representative to understand and know the exact requirement.