If you are not fully prepared, an emergency can puncture your pocket, or worse, cause i can’t fix damage to your financial health.
Emergencies of all kinds, be it illness, accident, or unscheduled repair. And if you are not fully prepared, an emergency can puncture your pocket, or worse, cause I can’t fix damage to your financial health.
This is when a personal loan can come in handy. It not only gives a significant penalty but is also approved and disbursed almost immediately. In fact, you can use a personal loan even if you don’t have an emergency. With immediate approval and swift sanctions, personal loans are one of the most popular financial vehicles available today.
However, to be eligible for this loan, you must meet the eligibility criteria for the lender’s personal loan, in case of one eligibility for approval may be delayed or even rejected.
To see where you stand in terms of personal loan eligibility, use an online loan eligibility computer. This is an online tool that helps you visualize how much you qualify for.
In case you notice that your lender is offering you a lower penalty than what you require, take a look at these five useful tips to improve your eligibility and get the money you need.
- Building and maintaining reasonable high credit scores
Lenders consider your credit score to be one of the most important criteria for eligibility, as it provides a snapshot of your past credit behavior. Scores of 750 or more show that you are a responsible borrower who has reimbursed previous fees on time. This minimizes the lender’s risk and therefore increases your chances of being approved. A score below 750 shows that you have a non-standard repayment record. This makes the lender classify you as a high-risk applicant. This may cause a higher interest rate or a complete rejection of your application.
- Pay for your existing loans and credit card bills
Before applying for a personal loan, make sure that you reduce the existing debt as this will increase the debt-to-income ratio. If you already have multiple loans and credit cards in your name, it won’t be easy to settle another loan. This causes the lender to believe that you do not have enough income and that you may delay or not repay the debt. A debt-to-income ratio of 15% is considered ideal in case you are paying a single loan at the time of signing up for a personal loan. In case you have multiple loans to repay, the combined EMI must not exceed 50% of your income.
- Include all sources of your income
Lenders also consider your income to be one of the key criteria for eligibility for a personal loan as it helps them assess your ability to repay. For this purpose, it is important that you introduce all your sources of income, not just wages. This will help you prove to the lender that you have the resources necessary to repay the loan on time.
- Avoid applying for multiple loans simultaneously
When you sign up for a personal loan, the lender will ask a credit office to assess your insolvent risk. Such questions are difficult questions and are listed in your credit report. Therefore, making multiple loan applications at the same time doesn’t mean you’re hungry for credit. This makes you a high-risk applicant and lenders can decline your funding request. Therefore, it is best to evaluate your options, use a qualified computer, and apply for a loan that suits your needs.
- Apply at a lender with simple eligibility criteria
Finally, apply at a bank with minimum personal loan eligibility criteria to increase your chances of being approved. For example, a Bajaj Finserv Personal Loan with the following eligibility criteria is relatively easy to meet:
You must be an Indian resident between the ages of 23 and 55
You must be an employee at MNC, public or private
You must earn a regular income and meet the minimum wage requirements for the city you reside in
When you meet the eligibility criteria, you only need to submit your basic documents to complete the registration procedure.
In addition to easy eligibility, Bajaj Finserv offers up to £25 lakh through a personal loan on a mortgage-free basis. Flexible term refunds are available for up to 60 months. With disbursement within 24 hours of approval, this loan is the fastest way to get finance for all your expected and out-of-plan needs.