The demand for personal loans has recorded an upswing, thanks to their quick approval, easy availability, zero collateral requirements, and no end-use restrictions. However, before sanctioning your borrowed amount, lenders meticulously review multiple factors such as your monthly income, CIBIL or credit score, repayment record, employment status, etc., to approve your personal loan application.
Here, if your application gets rejected, your credit score can take a hit. Hence, it’s crucial to increase your loan eligibility in advance to better your chances of loan approval.
Well, below are a few tips to increase your likelihood of getting your loan applicationimproved.
Ensure a healthy credit score
The most critical thing that strengthens your loan application is your credit score. The lender checks your credit report to ascertain your creditworthiness and establish you as a reliable borrower. A score of 750 or above is deemed healthy. So, before applying for the loan, you must check your CIBIL score to avoid any bumps in your borrowing journey.
Fill the application carefully
To ensure that you have the best application for personal loan, you need to make sure that your form is thorough and error-free. The lender requires you to provide various details such as your personal information, employment type, annual income, etc. Make sure to submit your current and permanent address, email address, contact number, and other details accurately. A correct application form will also result in faster loan processing.
Check the eligibility
Before taking a loan, you must check the personal loan eligibilitycriteria set by the lender. Since different lenders have varying criteria and loan terms, compare the offers and choose the one that best suits your needs. Contact your lender or check out their website to know about the various requirements you must fulfil in advance.
Get your documents in order
Proper documentation is your key to a hassle-free loan process. The documents you submit should be as per the details you provided in the application form. Lenders usually ask for your identity proof, address proof, employment certificate, income proof, and other credentials. So, you must keep the documents ready well in advance to ensure quick approval.
Get the right loan amount
While a personal loan is a convenient tool to ease your financial worries, it’s still a debt burden. You might be tempted to opt for a higher sum, but you must chalk out a budget, estimate your future expenses, and get an amount you can comfortably repay. This will also increase your chances of getting approved for the loan.
Before sanctioning the loan, the lender will assess your repayment capabilities. And if you request more amount than you need, the lender might perceive you as a risky borrower. Using a personal loan EMI calculator can help you decide on an affordable EMI and ascertain a comfortable loan amount.
Additional Read: Tips & Tricks to Track Your Personal Loan Status Online
Over to you
Now financial freedom is all yours with Tata Capital! You can apply for multi-purpose personal finance at competitive personal loan interest rates for a convenient tenure of up to 6 years. Get quick finance with minimal documentation and flexible EMI payment options.
Check out our eligibility and paperwork requirements today!