Few Tips To Improve Personal Loan Eligibility

Few Tips To Improve Personal Loan Eligibility

Many of us have several dreams. A dream to move around the world, a desire to study in abroad, a dream to have our own house and the list is indeed very long. But yet again many of us let these dreams go, to fulfil our necessities first. Perhaps, we are fortunate enough that we can now live our dreams by making the right choices at the right time. And this right choice comes in the form of a blessing called ‘Personal Loan.’

What Is Personal Loan?

A personal loan is a type of unsecured loan that can help you outreach the world with pride. Here the term unsecured signifies that in this type of loans the banks or NBFCs do not need any security or collateral for the security pledge. Although this puts the financial institution quite in risk and to avoid it, they first check the background, income, financial status, credit score, etc. of the candidate. And this is the only part that puts the personal loan eligibility of the candidate at risk. But how do we meet that personal loan eligibility is a question that arises? So, here are a few tips that will definitely help you to improve your Personal Loan Eligibility if you follow them in the right way.

Clear all the Existing Loans

Always look out for the credit loans that you took a couple of years ago. If the previous loans are not cleared, then it is definitely a red signal to your future application for the personal loan. Make sure you are done with all the payments and installments of those previous loans, and the account has been closed. Collect all the necessary enclosures and no-dues certificate from the bank to run on the safest path.

A Good Credit Score is a Blessing

Among all the personal loan eligibility criteria, the most important bottom line is your credit score. If you want a clear green chit from your bank to your application make sure you have a good credit score else you might end up having nothing in the end. An impressive credit score can be achieved only by keeping a regular check on it.

Variable Pay

If you earn a variable pay, then make sure you keep a track record how much variable pay or how much perks you receive as a part of your job. This record will help you enhance the personal loan eligibility as the more variable pay you earn; the more are the chances.

Rental Income

Do not forget to keep a proper record of your incomes other than your job. It might include the residential or commercial rental income (if you have any). This definitely is a cherry on top of your credit report.

Increasing Tenure

When you increase the tenure of your personal loan, there is a higher probability of getting approval to your loan application. So, plan the entire scenario accordingly but keep in mind that the banks only offer a maximum tenure of 5 years.

Spouse Earnings

If you have a spouse, who is earning as well, then it is always a good idea to go for a joint application. This increases the possibilities of your personal loan eligibility, and also the burden of the refund is not anymore there.