The pandemic stress has increasingly become a regular part of our lives. The declining economy, uncertainty in markets and rising unemployment have created restlessness in public. These difficult times have led to concerns about the near future and fear of restricted income that might be insufficient for survival. In such testing times, getting a loan seems to be the only option left, for a financial re-ordering. A personal loan is a fixed amount of funds that are borrowed at a fixed rate and repaid over a fixed period of time. You can avail a loan from a bank, credit union or online lender. Personal loans are the unsecured type which means it requires some type of collateral.
In that case, lenders look at factors like your credit history, credit score, income and sometimes employment to determine the credibility of the borrower. The lockdown led to the rise in the number of unemployment in the country, ultimately impacting the repayment ability of the borrowers. Hence, this situation raises concerns for the lenders who might impose stringency while evaluating a borrower's loan eligibility. Let's have a look at the factors that will impact the personal loan eligibility during the lockdown.
Banks and other lending institutions look at factors like your current source of income as well as your monthly expenses. An individual's monthly income is one of the most critical factors in the financial profile. The lender considers this information to determine the borrower's ability to repay the loan. But after the lockdown, the economy has been declining and many people are facing a financial crunch. This might have an impact on loan eligibility. So, it's best to have additional sources of income that can contribute towards your monthly income and enhance your creditworthiness.
As many people are experiencing financial shortages and job losses a lot of them would opt for a loan to make ends meet. However, getting a loan might not be easier for people who do not have a good debt-to-income ratio, as the lenders will abide by the loan eligibility criteria. Your debt-to-income ratio compares your monthly debt expenses to your monthly gross income. That includes your monthly credit card payments, car loans, other such debts. Banks and other lenders do a background check on the credit history that displays how much debt the borrowers can manage before they are likely to face financial difficulties, and they use this knowledge to set the final loan amount. The ideal debt-to-income ratio value is below 50% a rate higher than this will suggest a higher risk of default on loans. Read More on Debt to Income Ratio.
When applying for a personal loan the lender runs a check on the borrower's employment stability. An individual with a steady job and income is considered capable of repaying the loan amount on time without defaulting the payments. The borrowers type of company and economic sector is also taken into consideration as this information is directly linked to the individual's financial stability. The pandemic situation has made it hard to determine how it will continue to further affect the economy. In such times if your employer’s stability is compromised, the lender will see this as a risk and you might have a hard time getting a loan.
All banks and financial institutions have a set of eligibility criteria that needs to be fulfilled by the borrowers. To avail you need to first check with your personal loan eligibility criteria. They are as follows:-
With the current pandemic situation, taking out a loan is most likely to ease your financial burdens. A personal loan is one of the most preferred forms of borrowing and it is the easiest way to get access to funds. There are numerous finance apps available in the market where you can easily apply for a loan online, one such personal loan app is the Finserv MARKETS app.
You can apply for a loan, access your loan application, track your purchase history, or simply make payments through the app. The online application process for personal loans on the Finserv MARKETS is quite convenient and their loans require minimal documentation which makes it an ideal choice for getting a loan at attractive interest rates. At Finserv MARKETS you can avail flexible repayment tenure of up to 12 to 60 months on loans.
Your online loan application can be approved under just 3 minutes and the loan amount will be credited to your bank account in no time. You also get complete access to a personal loan EMI calculator where you can easily calculate your monthly instalments that need to be paid even before you apply for a loan. Get an instant loan today and enjoy all the benefits it has to offer.
“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”