How to Increase Your Eligibility For a Personal Loan?

A personal loan can help finance a range of expenses, including a medical emergency, holiday expenses, mobile phone bills, unpaid taxes, a 2- or 4-wheeler purchase and so on. But, to apply for the loan, you need to fulfill the eligibility criterias. So, here are some useful ways to boost your eligibility for the loan.

Build a Good Repayment History

Ensure to pay the EMIs of all your loans and your credit card bills regularly on time to build good repayment records. If any of your loan EMIs or credit card bills are unpaid, try to pay off the dues to improve your repayment history. Good records can increase your loan eligibility since a lender checks your repayment history before offering a personal loan.

Improve Your Credit Score

Your credit score shows your creditworthiness, and therefore, a higher score means higher eligibility for a loan. An error-free credit report can also be helpful. So, ensure to revise your credit report from time to time. If you find any errors, immediately request the credit bureau to rectify them. Once you have a clean report, apply for a loan.

But what to do if you've never borrowed before or don't have a credit score? Then consider applying for an instant loan on the app of a fintech company. Select fintech companies which use a modern credit-rating system like the Social Loan Quotient (SLQ). The SLQ score is evaluated using artificial intelligence, big data analytics and machine language. It works like a typical credit score and ranges from 0 to 995.

Unlike a traditional credit score, the SLQ score can be boosted by improving your social media presence, increasing your career experience and updating your educational qualifications and basic KYC details. Once you have a good score, you can easily apply for a loan on the company's instant loan app.

Choose a Short Loan Tenure

If you want a short repayment tenure, but a traditional financial institution can't offer that, consider choosing a suitable fintech company. See whether it provides personal loans for short terms like 90, 180, 270, 365 and 540 days. Then, choose an appropriate loan amount and a tenure based on your repayment capacity and apply online.

Submit Genuine Documents

Ensure you submit genuine and legible documents when applying for a personal loan. This helps increase the chances of your loan application being approved. However, if you want hassle-free paperless documentation, you can simply apply for a loan on an instant loan app.

Declare Your Additional Income Sources

Go ahead and mention all your income sources to the lender. These can include your income from any additional small business or rental income. Higher income implies a higher repayment capacity and, therefore, increases your loan eligibility.

Conclusion

Just follow the above tips to boost your eligibility for a personal loan. Then, to get an instant loan, apply for it online on a fintech company's app.

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