A Personal Loan Eligibility is a loan that is not secured that is able to be approved within a short period of time. The loan is provided by financial institutions to satisfy specific needs, such as weddings and medical expenses, travel and more. Personal loans are offered by banks to salaried and self-employed individuals who are between 21 to 60 years. The term of personal loans is ranging between 1 and 72 months. Each bank has different rates of interest on personal loans The minimum interest rate is 10.50 per cent.
If you are looking to finance your wedding, or are in need of money to meet your the needs of your family, a personal loan will meet your requirements. Here are some guidelines that will help you avoid any difficulties and help you improve your personal loan’s eligibility:
- credit score: The most important factor that banks look at when granting personal loans is the credit history. A CIBIL score that is 750 or higher is considered to be a great score for getting an personal loan.
- Do not default on the loan EMI’s: To keep a great credit score, you must pay all dues on time. There shouldn’t be any pending dues to maintain a positive repayment record and pay the loan in a timely manner.
- Make use of your credit card in a responsible manner: You should maintain an acceptable credit utilization ratio and to achieve this it is important to not use too much of the credit card to make payments. Because banks keep track of the proportion of payments made by credit card to the limit of the credit credit card should be used prudently. In addition it is important to pay your credit card charges in time.
- Do not apply for loans too often: Applying for a loan too often suggests that applicants have poor financial habits. Therefore, banks presume that the borrower spends unwisely, which impacts the ability to get the loan.
- Include all earnings sources: To improve the loan eligibility, you must disclose every source of income. Include the other sources of income could increase your debt-to-income ratio, which ultimately gives banks the full confidence that you will pay back the loan on time. Another option to earn income which includes rent income, may be added to the main reason for income. You may also include an additional applicant to raise the income bracket you are in.
- Select the most suitable market: You have to select the right institution to provide you with private loans at reasonable interest rates. It is possible to use online marketplaces to determine the eligibility requirements along with interest rates. They can also assist you compare rates from various institutions, and can also assist in the approval and the sanctioning for the loan. In addition online tools to verify the legitimacy of personal loans could be useful prior to submitting an application for the loan.
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Do’s and Don’ts that must be considered before making a decision about a personal loan
- Avoid applying for loans with higher values that you might have a difficult time repaying.
- Do not apply for a single loan at multiple banks at once.
- Do not conceal any personal information that is required to get the loan.
- Make sure you submit all documents required to banks.
- Compare rates from different banks to find the most suitable product for your needs.
- Do not change jobs too often.