
Personal loans are unsecured financial tools offered by financial institutes and NBFCs without pledging any asset. If one possesses a healthy credit score, stable source of income and a good repayment track record – one can procure a personal loan easily from the preferred lender.
However, to make availing loans a hassle-free process, follow these 5 essential tips –
1. Make sure you meet the lender’s eligibility criteria
To apply for a loan, the borrower –
Needs to be an Indian citizen.
It should be between 23 and 55 years of age.
Must be a salaried professional at any MNC, public or private company. For a self-employed individual, one needs to have a stable source of income with proof of business.
2. Do not apply for a personal loan from multiple lenders at once
Multiple loan applications deem the applicant a credit-hungry individual and thus, reduces his/her credit score. As such, lenders consider such individuals as risky prospects as borrowers.
3. Maintain a healthy CIBIL score
A credit score around or above 750 improves your chances of availing a personal loan. The score reflects your repayment ability and makes you more eligible to avail a loan.
4. Borrow as per your capacity
Always apply for a loan amount as per your current monthly income. You must plan your finances and make sure you do not default on your payments. Use a personal loan calculator to calculate the monthly payments before applying for the loan.
5. Do not apply for a loan while paying off another
Avoid applying for a loan while you are still repaying an on-going one. Plus, make sure you have not obtained any other form of credit in the past 6 months or so.
Follow these tips to easily get your loan approved by prominent financial lenders.