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Applying For a Personal Loan? Improve Your Eligibility First

· personal loan

A personal loan is one of the most applied loans in India. It is because it offers a large loan amount that you can use for any purposes. What’s more, the digital application process to approval and disbursement makes it easy to apply.

But to avail the personal loan, you must have the required eligibility as it is a collateral-free loan. Read on to improve your personal loan eligibility in this post!

Here’s how you can enhance your personal loan eligibility

Meet the eligibility conditions of the lender

The next thing is matching the eligibility conditions of the lender you wish to apply with. The standard personal loan eligibility criteria include:

  • Your age should be between 23-55 years.
  • You must be a resident citizen of India.
  • You should be employed with an MNC, Public and a Private Limited Company.
  • KYC Documents.
  • Employee ID Card.
  • Previous 2 months’ salary slips.
  • Last 3 months’ salaried bank account statement.

Apply when your debt to income ratio is lower

Another way to boost your personal loan eligibility is by applying when your debt to income ratio is lower. To do that, you should ensure having 40%. The best thing would be repaying all your loans and credit cards before applying. It will indicate that you are the right candidate and will enhance your personal loan eligibility.

If you are able to consider these points, then you will surely increase your personal loan eligibility. This way, you will get the loan approval faster and at a lower rate.
Maintain a higher credit score

Since the personal loan does not need you to submit collateral; you ought to have strong creditworthiness. And your credit score is one of the key elements that make it. Lenders check it as the first thing while processing the loan request. Hence, it needs to be high. You can maintain a higher credit score of 750 and more by paying your debts on time and without defaults.

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