Emergencies can come in anytime in your life in any shape or form, be it a medical ailment, an accident, or unexpected repairs. If you do not have sufficient funds to meet these emergency requirements, then, you can apply for a bank personal loan online. Not only does it offer a significant sanction, but also you can get a loan instantly if you have a good credit score and you meet all the eligibility criteria.
Remember, before you get a personal loan, the lender will evaluate your eligibility for personal loans to gauge your creditworthiness. It will be based on some factors such as your monthly income, credit score, employment stability, etc. Though you can apply for a personal loan online, you need to be sure about your eligibility to improve your chances of loan approval. For this, you can make use of the personal loan eligibility calculator to get know-how about your eligibility. Here we share a few financial habits which can positively impact your personal loan eligibility when you apply for an unsecured loan.
1. Keep a check on your Credit Score
Your credit score is an indicator of your credit history. When it comes to an unsecured personal loan, lenders evaluate the creditworthiness of the applicant before approving their loan application. That is why it becomes important for you to know about your credit standing before applying for a personal loan. Also, checking your credit report and score will help you to spot the errors and fix them at the earliest possible. You can check your free credit report and score by taking the help of the Fintech portals for free or through credit rating agencies.
2. Clear off your outstanding dues on time
Before approving your personal loan application, lenders will look at your previous payment history. If they found that you were regular in paying your loan EMIs and credit card bills on time. In that case, your loan approval chances will become very high.
3. Opt for a longer tenure
When you choose a longer tenure, your personal loan eligibility gets increased. A longer tenure shows that you can repay the loan for a certain period. This way you can reduce your monthly repayment burden. If you have tight monthly financial commitments, you should opt for a longer tenure loan. You can also make use of a personal loan EMI calculator to plan your EMIs which is available on the Fintech portals online.
4. Keep your credit utilization ratio below 30%
The credit utilization ratio is the ratio of the actual amount you borrow on the credit card to the entire credit limit that is offered to you. You should always try to maintain an ideal credit utilization ratio which is under 30%. It shows that you are a responsible behavior when lenders look at your credit profile. This way your personal loan eligibility gets increased.
5. Include all sources of income in your loan application
Your income is considered as one of the most important eligibility criteria while applying for personal loan. It helps them evaluate your payment capacity. So, make sure that you include all your sources of income, not just your salary. This will help you prove to the lender that you have the necessary resources to make your EMI payments on time.
6. Apply at a lender with a simple eligibility criterion
Nowadays, most of the lenders and NBFCs are offering unsecured loans. While researching for the best one, make sure that you choose such a lender which requires a minimum eligibility criterion to increase your chances of loan approval. Doing so will also enable you to find the best personal loan offers by comparing the different lenders online. For a hassle-free personal loan application, you can click here and instantly file your online application.
Keeping in your mind the above-mentioned tips will surely help you to improve your eligibility for personal loans. Make sure you check these before availing the loan. You can also visit IndiaLends and use our personal loan eligibility calculator to know your eligibility.
