12 Ways to Boost Your Eligibility for a Personal Loan in 2023

In the past three years, instant personal loans have gained popularity as a convenient instrument of credit. The entire application is online, avoiding the hassle of visiting the financial institution and completing paperwork in person. In addition, personal loans are unsecured. That means no collateral is required to get a personal loan. The simplicity of obtaining a personal loan online and the freedom to utilize the money as you please appeal to the loan applicants of today. However, to get a sufficient loan amount and affordable terms of repayment, you must fulfil some eligibility criteria. In this article, we will discuss some important financial tips that can help you boost your eligibility and obtain a loan best suited to your needs.

12 Ways to Boost Your Eligibility for a Personal Loan in 2023

1. Maintain a Good Credit Score

Banks and other lenders will check your CIBIL score when assessing your loan application. Ensure that you maintain a high credit score in the long term to boost your eligibility.

2. Know the Lender’s Eligibility Criteria

Read the fine print and understand your lender’s eligibility criteria before you apply. It will help you analyse your financial standing vis-à-vis the required personal loan eligibility. That way, you can work on improving your eligibility before applying.

3. Apply for an Amount You Can Afford

Assess the personal loan interest rates and calculate the EMI you need to pay relative to the loan amount. Apply for a loan amount that you can quickly repay. If you apply for a loan amount that you cannot afford to repay with your monthly income, your application may be rejected.

4. Check Your Debt-to-Income Ratio

Your monthly debt divided by your gross monthly income is your debt-to-income ratio. If you spend less than 40% of your income on EMIs. That way, your debt-to-income ratio will remain within the eligibility criteria.

5. Avoid Multiple Loan Applications

Even if you are going through a financial crisis, avoid applying to multiple lenders at once. Lenders may perceive this as credit-dependent behaviour. Multiple loan applications also hurt your credit score.

6. Add a Co-borrower

Most financial institutions allow you to apply with a co-borrower. It could be your business partner, spouse, or friend. Suppose their credit score and eligibility criteria are better than yours. In that case, it could improve your chances of getting an instant loan.

7. Mention All Sources of Income

Listing all your sources of income help in improving your eligibility for a personal loan. Lenders need to know if you can repay the loan on time. Providing details of all sources of income will help you meet the lender’s income criteria.

8. Opt For a Longer Loan Tenure

A longer loan tenure divides your loan amount into affordable EMIs. That enables you to make timely repayments without the risk of default. It reduces your financial burden and boosts your chances of loan approval.

9. Ensure a Few Months Gap Between Loan Applications

If you apply to multiple lenders for instant personal loans online, it is best to have a minimum of six months between each application. If your financial need is not urgent, such a time gap will prevent your credit score from falling – as you apply to multiple lenders.

10. Provide Accurate KYC Information and Updated Documents

KYC is essential to the loan application. Based on the verification of the information provided in KYC, your lender will determine your creditworthiness. Therefore, always provide complete and accurate information in your KYC paperwork.

11. Browse All Available Loan Options and Choose Lender Carefully

Thoroughly research all your loan options properly and compare the terms of different lenders. It will help you find the best deal among the flood of financial players in the market.

12. Check Your Personal Loan with The Help of Personal Loan Calculator

The personal loan Calculator can help you to calculate your loan with respect to your income. It can also calculate the EMI according to the rate of interest and tenure of the loan. It can help you to give a fair estimate of your overall loan journey.

Author Bio: Shiv Nanda

Shiv Nanda is a financial analyst who currently lives in Bangalore "refusing to acknowledge the name change" and works with MoneyTap, India's first app-based credit-line. Shiv is a true finance geek. They always rely on him for advice on their investment choices, budgeting skills, and personal financial matters and when they want to get a loan. He has made it his life's mission to help and educate people


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