Personal loans are some of the most leading credit products amongst the working class. With a simple and easy application process, zero collaterals and quick disbursal, it is one of the most popular means of financing available today. However, to qualify for a personal loan, the lender’s eligibility conditions should be adhered to. To ensure loan approval with favorable terms and conditions, the following steps are recommended to boost your chances of eligibility for a personal loan.
- Improving and maintain the Credit Score:
Credit score is measured by the ability to repay a loan. The higher the score is, the better are your chances of getting a personal loan sanctioned in your name. Poor credit scores often cause a hindrance if the criteria is not met, making it harder to meet the terms and conditions of the lender. A credit score of 800 or above projects you as a responsible buyer. A score less than 800 signifies you as a high-risk borrower thus making you ineligible.
- Refrain from applying for multiple loans:
In order to get approved by at least one, multiple loan applications to lenders should be avoided. When applying for a loan, lenders raise an enquiry in the credit bureau to determine the risks of a default. These enquiries are hard enquiries aimed at decreasing your credit score. It also makes you a credit hungry and high-risk applicant thus rejecting your requests of a finance.
- All accounts of Income should be Included:
The repayment capacity is determined by checking your sources of income. What this signifies is, that when applying for a personal loan all existing sources of income, irrespective of any kind, should be included in the details so as to determine your ability to repay it. This helps in proving the lender that you have the necessary sources for timely repayment.
- Find a lender with an eligibility criterion that can be met by you:
It is imperative to compare loans before choosing lenders. Find out about the eligibility conditions of different lenders and zero in on one that suits your criterion the best.
For instance, loansforher offers the following eligibility conditions that are simple to follow:
- You must be between be older than 18 years
- You should be a salaried individual
- You should have PAN allotted by the Income Tax Department of India
By fulfilling these conditions, you just have to get your essential documents verified to complete the loan sanctioning process.