There are numerous ways to use a personal loan, it can cover all kinds of financial requirements. Applying for a personal loan is fast and simple, as it is an unsecured type of loan, this loan does not require any collateral as security. Many banks and financial institutions grant loans based on certain eligibility criteria to ensure the borrower is creditworthy. To help you understand how to get instant approval on your loan application, here are a few factors that affect the approval of your loan.
The applicant age is one of the important factors when applying for a loan. If you are in your younger years, say the early 20s, you are not required to have financial stability, but you have enough time to earn and repay the loan funds. Similarly, borrowers applying for a loan after 20 to 25 years of employment, the earning window is smaller, this results in higher chances of loan rejection. To be eligible for a personal loan the borrowers need to be between the ages of 23-25 years.
Your debt-to-income ratio is an important element in your financial profile. Lenders are less likely to lend to you if you already have too many financial obligations. You can calculate this by simply dividing your total debt payment by your income. It is important to keep the debt value below 50%, as a higher debt percentage poses a greater risk of defaulting on loan payments.
Whether you are a self-employed or a salaried individual, your income plays a major role when getting a loan and lenders look into it very closely. You must meet the minimum monthly earning requirement to be eligible for a loan. Depending on the city you live in and the lender you’ve opted for, the minimum requirement varies. Having a steady flow of income ensures your credibility of repaying the loan on time. Hence, you need to check with your monthly earning amount beforehand, as it is also beneficial for you to showcase your additional sources of income.
Your employment stability translates to a regular stream of income, and so, lenders also look into the organisation you work with. 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. If your employer has a history of delayed salary payments or is not financially sound the lender will see this as a risk and you might have a hard time getting your loan approved.
When you apply for a loan the lenders run a check through your profile. They also check your credit score and credit history. Your credit history includes your past experience with borrowing credit, your repayment track record, missed payments and the variance in credit types. Your credit score has a major impact on your loan approval. A good credit score means you make timely payments towards your EMIs. On the other hand, a low CIBIL Score denotes a bad credit history and it implies that the applicant was not timely with his/her payments. If you have a credit score below 750, this can lead to loan rejection, and even if your application is approved, your loan may not carry the most favourable terms.
All banks and financial institutions have a set of eligibility criteria that needs to be fulfilled by the borrowers. To avail a loan you need to first check with your personal loan eligibility criteria. They are as follows:-
The applicant must have Indian citizenship to be eligible for a loan
The applicant needs to be between the ages of 23 and 55 years
Should be currently working with a private or public company or a multinational company (MNC)
Monthly income should be based on their location, a minimum net monthly salary must be between INR 25,000 and INR 35,000
To make the application process easier, look for a lender that offers a personal loan with relaxed personal loan eligibility. You can get a loan at Finserv MARKETS to meet a wide range of financial requirements. With Bajaj Finserv Personal loan you get flexible repayment tenure with easy access to EMIs over a period of 12-60 months.
There are no hidden charges on your loan and you can easily access your loan account anytime, anywhere. With personalized pre-approved offers, instant approvals, and quick disbursal of loan, on the Finserv MARKETS App, you can get the most attractive interest rates on loans. The online application process is smooth with minimal documentation of loan making it an ideal choice for getting a loan. By applying for a Personal loan you can check your CIBIL Score for free and also obtain a Financial Health Check Report (FHCR).
Know more about the ways to Boost Your Personal Loan Approval chances.
“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.”