Finance

5 Tips to Improve Your Personal Loan Eligibility in 2020

2020 has already started, and you may have some goals to accomplish by the end of the year. To do so, you may need to have a considerable amount of money.

Sometimes, your salary may not be enough to fulfill a few of your goals and wishes. And it is where a personal loan comes into the picture. A personal loan is a hassle-free funding facility to get a higher amount over a longer tenor.

However, you need to have the personal loan eligibility criteria to qualify for the loan facility. Here is a quick post that will provide you with tips to become eligible at best personal loan interest rates in 2020. Read on!

  • Ensure to have a robust cibil score

The first thing that a lender sees while processing your loan application is your cibil score. It is used as a factor to determine your creditworthiness and analyze if it would be risky to grant you the loan or not as there is no collateral needed for a personal loan. You need to have a credit score of 750 or more to not only get the loan approval but even at a lower rate. It is easier to build your cibil score by paying your existing loan EMIs and credit card outstanding on time and without defaults.

  • Assess your lender’s eligibility parameters

Along with the discussed factors to improve your personal loan eligibility, you should also check the eligibility parameters of the lender you are applying with. The standard personal loan eligibility aspects are:

  • Your age should be between 23-55 years
  • You must be a resident citizen of India
  • You need to be employed with an MNC, private or a public company

 

 

  • Go for a longer tenor

When you go for a longer tenor to pay off the personal loan, it gives your lender the confidence that you have the capacity to repay the same over a time period. What’s more, opting for a long tenor also reduces the EMI to be paid. Thus, you can easily afford it and close the loan on time. This way, you can even build a higher credit history and be ready for a future loan on lower rates.

  • Clear current debts

Another vital factor that will boost your personal loan eligibility is clearing current debts. If you have debts on your head, then the required personal loan amount that may be approved will be lower than your needs. Hence, to get the maximum loan amount sanctioned, you should ensure to clear your existing debts.

  • Do not apply multiple times

Your personal loan eligibility takes a hit when you apply to many lenders at a time thinking that at least one will approve your application. But it leads to lowering of your credit score as every time you submit a new application, your lender pulls your cibil score. It is considered a hard enquiry, which hampers your credit score. Also, your lender may think that you are credit hungry and may not sanction your loan application.

By employing these easier tips, you can quickly enhance your personal loan eligibility and be on your way to get a higher amount to fulfil your wishes and goals.

Bajaj Finserv offers pre-approved deals on EMI finance and personal loans and more. It can simplify loan formalities by making it less time-consuming. You can share your basic details such as your name and mobile number to check out your pre-approved loan offers today.

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