With the advancement in technology and its integration in the financial sector, one can now easily avail of personal loans through dedicated online platforms. To apply for a personal loan online, one has to visit a lender’s official website and fill up the application form provided on the website.
At the same time, one should also focus on the mentioned eligibility criteria and fulfill them to avoid any rejection. Hence, if anyone is struggling to meet them, then they should focus on tips to improve them.
Tips to improve your eligibility for a personal loan
Below given are some quick tips that shall help improve your overall eligibility before individuals apply for a personal loan online –
Tip 1: Take measures to improve credit score
A credit score is a three-digit number assigned to individuals to represent their creditworthiness, which is critical for personal loan approval. Ideally, lenders require applicants to hold a minimum credit score of 750.
One can take necessary measures that shall help improve this score over time. These can include the following –
- Make timely payments of EMIs without any default
- Dispute any credit report error with the issuing bureau
- Keep old credit cards active and working
- Avoid making multiple loan applications in a short duration
A high credit score also helps you secure competitive personal loan interest rates along with improving your eligibility for the advance.
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Tip 2: Add a co-signer to your application
An efficient way of improving one’s eligibility to apply for a personal loan online or offline is to add a co-signer to the application. Such cosigners can be spouses or parents. However, to increase the overall eligibility of a loan application, it is essential that a co-signer has a stable source of income and a reputed credit profile.
Tip 3: Provide accurate financial details, including variable income
The eligibility for a personal loan is closely related to an applicant’s income. To reaffirm this pointer, lenders require applicants to provide the necessary proof of income. These documents include salary slips, bank account statements, and income tax return papers.
However, to improve the overall eligibility of a personal loan for travel or any other purpose, one can also add documented proof of variable incomes, if any. Such income can include investment profits, rental receipts from a let-out property, etc.
Tip 4: Applying for a loan amount lower than maximum loan eligibility
Another great way to improve personal loan eligibility is to apply for a loan amount that is lower than what a borrower is eligible for. For instance, based on your eligibility, you can get a loan of, say, Rs.20 lakh. But, if you apply for a loan of Rs.10 lakh, it will enhance your chances of securing that loan. Moreover, you can get funds on better terms too.
Tip 5: Select an extended repayment tenor
Opting for a long time always helps to increase eligibility while applying for a digital personal loan online or offline. Although indirect, it impacts personal loan eligibility significantly. For instance, selecting a short tenor increases the amount of EMIs payable, thus bringing down your immediate loan affordability. Conversely, choosing a long tenor leads to EMI reduction, thus pushing up your immediate loan affordability and your eligibility for the advance. To find the right personal loan tenor that works for you, use an online calculator.
Besides knowing the tips to improve personal loan eligibility, one should also learn about the parameters.
Common eligibility parameters to apply for a personal loan
The standard eligibility requirements one needs to meet for personal loan approval include the following.
- Age must be between 20 and 60 years
- Applicant should be a salaried individual employed with either an MNC, a public, or a private company
- He/she must also be a residing Indian citizen
- Applicants must maintain a credit score of at least 750
- They must comply with the minimum monthly income requirements of a lender
While these are the basic parameters to apply for a personal loan online, other peripheral aspects also impact the financial profile of a prospective borrower. Taking care of these aspects before applying improves one’s chances of receiving approval for credit without much hassle.
To reduce this application hassle further, financiers extend pre-approved offers on a range of products such as personal loans, business loans, credit cards, and others. These offers streamline the loan application process and save time. Individuals can check their pre-approved offers by providing essential contact details.
Further, when seeking to improve eligibility to apply for a personal loan online, one can keep the aforementioned tips in mind. Also, they can compare between lenders to find the most suitable eligibility parameters and the right personal loan for them.
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