Personal loans are one of the most common financing options today that are easy to avail against simple eligibility requirements. The documents a lender needs for applicant verification have been minimised too, making loan approval and disbursal faster than ever. With the right eligibility fulfilment, you can today avail a personal loan approval within as low as 5 minutes of application. Similarly, disbursals of these advances are quick too and not take more than 24 to 48 hours based on the city an applicant resides in.
Now, while the personal loan eligibility criteria laid down by the financial institution help gauge the overall borrowing capacity of an applicant, there are other curtained aspects to it that one must not miss when applying for a personal loan. It is these aspects that must be taken care of and worked upon for enhancement in the overall eligibility for the advance. We bring you a few tips and tricks that should help improve your loan eligibility for easy approval of the financing.
Smart Tips for Personal Loan Eligibility Improvement
1. Keep your repayment history unscathed
An individual may borrow funds multiple times over a duration, simultaneously servicing them through due repayments. While these options make handling the finances convenient, they also bestow the borrower with a crucial responsibility of timely repayment, which can carry a negative impact if not managed in time and in full.
Specifically for personal loan eligibility, it is crucial that you keep your repayment history unscathed through timely repayments of your advances, if any. It becomes even more important for these loans as they are unsecured advances and lenders rely primarily on past repayment records for loan approval instead of any other aspect.
2. Apply under your loan amount eligibility
Depending on your occupational status, income, and creditworthiness, you may hold eligibility for high-value personal loan approval. However, it does not make availing the maximum financing value you are eligible for ideal. It is because a higher value always weighs heavy on your income and leads to a reduced repayment capacity.
By choosing to borrow only as much as you need and not the entire financing available, you uplift your repayment capacity, improving your eligibility for favourable terms like low rates on your personal loan.
3. Choose to repay over an extended tenure
Your choice of loan tenure has a crucial impact on your overall personal loan eligibility. It is because it helps stretch or compress the EMIs payable for the borrower. Opting for a long tenure allows you to reduce the EMIs payable, thus impacting your repayment capacity positively and improving eligibility. However, take care not to over-stretch your choice of tenure as a longer tenure makes the loan dearer too through higher interest accrual.
4. Document all income sources
One of the best ways to improve your overall eligibility for the advance is to submit all primary and secondary income documents when completing paperwork. It improves your financial standing and stability, and helps secure a suitable loan amount for you.
5. Repay small credits
If you have been servicing multiple small loans, you can also choose to repay them before you apply for a personal loan online or offline. It should help make sufficient room in your monthly income to accommodate EMIs for a high-value personal loan.
7. Avoid making multiple loan applications within a short span
Apart from these, you must also avoid making multiple loan applications within 6 months prior to applying for a personal loan, or any other advance for that matter. This is because it leads to multiple hard enquiries on your credit profile, leaving it with a negative mark as such enquiries are not appreciated.
Keeping these tips in mind should help you improve your improve your overall personal loan eligibility for easy approval of the advance as well as to secure desired financing. Make sure to keep all documents intact and handy when applying to further fast-track loan processing.