Tips to boost your personal loan eligibility criteria in India

Life is unpredictable; thus, we can never predict when we might require an urgent need for cash. However, when we do face such financial crunches in life, we can now easily personal loan online apply in India. Several financial institutions have started providing monetary assistance in the form of personal loans.

Further, these banks and NBFCs (Non-Banking Financial Companies) provide personal loans at way lower interest rates as compared to traditional financiers. Other than that, when you personal loan apply online in India, you also get to enjoy zero-collateral financial assistance as well as flexible repayment tenure.

However, to reduce the risks involved with lending financial assistance, banks and NBFCs (Non-Banking Financial Companies) have set personal loan eligibility criteria. Further, these eligibility criteria are different for every financial institution; however, there are a few criteria that are almost similar for every bank and NBFC (Non-Banking Financial Company). Thus, in today’s article, we have compiled a list of a few tips that will help you boost your personal loan eligibility in India:

1. Build your credit profile

Your credit profile is one of the first things that financial institutions check while scrutinizing your personal loan application. After all, your credit profile is the best reflection of your financial behaviour, and it helps them access whether you will repay the loan amount or default on the same. Therefore, before you personal loan online apply, ensure that you work on building your credit profile by repaying all your previous and pending EMIs (Equated Monthly Instalments) on time. Further, also ensure that you have repaid your credit card bills. This helps you build a credit profile and improves your personal loan eligibility in India.

2. Work on your credit score

Apart from your credit history, financial institutions also check your credit score. Thus, ensure that you have a credit score above 750, as it will help you qualify for a personal loan in India. Further, the higher your CIBIL score, the more your chances of becoming eligible for the loan amount. The CIBIL score range in India is between 300 and 900. You can improve your credit score by timely repaying EMIs, credit card bills, etc. Further, if you are planning on opting for a higher loan amount then it is better that you first build your credit score by borrowing smaller amounts of personal loans.

3. Alternate source of income

At the end of the day, the only thing that banks and NBFCs (Non-Banking Financial Companies) want is for borrowers to repay their loan amount on time. Thus, if you have a steady source of income then you easily meet the personal loan eligibility criteria in India. However, if you want to boost your personal loan eligibility then you can show an alternate source of income. This alternate source of income can be the rent from your second property or you can also add your spouse as a co-signer, and show their income as an alternate source.

Hope you enjoyed reading this article and understood the various ways through which you can boost your personal loan eligibility in India.

I specialize in writing finance blog; Particularly, topics related to personal finance, loan, insurance policy and financial management.