A personal loan is a fast way to get a loan. The process is simple. You will get the loan within 3 days. Does not require lots of paper works. This is an unsecured & collateral-free loan. NBFCs offer up to 35 lakhs loans within 24 hours. But Banks will take some more time.
We are going to cover 7 simple tips to improve personal loan eligibility in India. This helps you to get fast loan approval.
The 7 Tips to Improve Your Personal Loan Eligibility
Increase your personal loan eligibility through 7 tips. The following tips are given below:
1. Avoid too many loans
If you have too many active loans, try to close them one by one. Too many loans will harm your credit report. Active loans can ruin your life. Also, CIBIL Score will down. This will badly affect on debt –to- income ratio.
Now a day’s most people apply for instant loans through different apps. It will give you an instant loan. But too many active loans will down your credit report. The loan inquiries will show on the credit report.
2. Maintain a healthy CIBIL Score
As you know, a personal loan is an unsecured loan. So, lenders will check the healthy CIBIL Score. The loan repayment ability can increase loan approval eligibility. Pay off loan & credit card bills on time. This will help to improve your credit score.
A credit score of 745 points is a good credit score. This score will help you to get a fast loan with a lower interest rate.
3. Choose Simple Criteria
Sometimes borrowers choose lenders that are more complicated to get the loan. You should choose lenders that will give you an instant loan. Also, eligibility criteria will be simple.
You can apply for Werize Personal Loan with easy eligibility. The following criteria will require to apply for an instant personal loan:
- The age should be 23 to 55 years
- The minimum 12,000 net salary
- 1-year Salary account statement pdf format
- Recent 3-year Salary Slips
You will get up to a 5 lakhs loan through Werize. Also, you can check out HDFC bank’s instant personal loan which is offering up to 40 lakhs loan.
4. Debt–to–income Raito
Debt-to-income is an important part when we talk about financial health. Calculate the debt-to-income ratio as gross monthly debt divided by your monthly gross income. Let’s assume your total current EMI is 18,000 and your monthly salary is Rs. 30,000. So, your debt-to-income ratio will be 0.60% which is your liabilities are higher than your income.
To get instant loan approval, your debt-to-income ratio should be 20% to 40%. It will boost your loan eligibility.
5. Increase Income
Increase your income through other income sources. For instant loan eligibility, you have to show another source of income. Lenders give you instant loan approval if you have other income like bonuses, incentives, or income from other sources, etc.
Lenders just want to know how to pay the loan. The other income source will help you to get fast approval.
6. Affordable Interest Rate
Always choose an affordable interest rate that you can repay easily. The affordable interest rate means your EMI (Easy Monthly Installment) will be low. This will help you to pay without any bounce and your CIBIL score will improve.
So, before applying for a loan, always check the interest rate that will be affordable for you.
7. Pay Existing Loans
Too many existing loans can ruin your life. Yes, it’s true. If you have too many loans, you are not eligible for new ones. You should repay existing loans. It will be good if you foreclose the previous loans. This will help your credit score and your loan eligibility chance will increase.
But if you can’t effort to foreclose the existing loans, you should pay the EMI on time. That will help you to maintain a good credit record.