By Abhijeet Kumar
An instant personal loan can fulfill any emergency and unplanned financial needs. Be it debt consolidation or medical expenditure, you can apply for a loan to cater to those financial emergencies.
Mostly unsecured, these personal loans are provided without any “security” deposit. But then, the financial institutions consider various factors to check that you’re eligible for a loan. Apart from your employment status and salary, they also verify your previous loans, repayment schedule and many other things including the credit score.
So, how can you make sure that you get easy personal loans when you need? Here are 5 tips below -
1. Pay off your existing loans as early as you can
The debt on your papers can make the lender flinch a bit. So, even if your income is sufficient to cover the EMIs, it’s always better to keep the records clear off any debts. Pay them off before you apply for a new loan.
2. Maintain a good credit score
Your credit score is one of the first things that banks and NBFCs see, to determine whether to approve the loan or not. Paying your credit card bills on time and keeping the credit usage low will be a definite help in giving you a consistent score of 750+.
Additional Read – 6 Things you can do to improve your credit score
3. Increase the tenure for your personal loan
Even choosing a longer tenure can increase your credibility and also, lower your EMIs. It creates an impression that you feel secure and you can continue repaying the loan for a long duration without fail. And the lower EMI equates to lower debt ratios (ratio of monthly debt to monthly salary).
4. Avoid applying with multiple lenders
I know you would think that if one lender rejects you, the other one can approve. But the system doesn’t work that way. Each time you apply for a loan, the bank or NBFC requests your credit report. And when these enquiries are within a span of months, your credit score will go down.
It also makes you look insecure to the lenders and not-so-confident of getting a loan.
5. Adding rental income to your portfolio
Variable pays and add-on incomes also can increase your probability of loan approval. So, if you have a residence available or a commercial property, rent it out. The additional income will lower the debt-to-income ratio and boost your chances of loan approval.
Suggested Read – 5 Personal Loan Tips for Salaried Employees
Those were the five ways to spruce up your chances of loan eligibility. So, don’t take chances by applying to six different lenders. Instead, work on building your credibility, build and maintain a good credit score and explore the options.
With a good credit score, many lenders will be happy to offer competitive personal loan interest rates. Still, if your profile doesn’t fit their criteria, your application won’t be approved. You can though, always check
Monexo is an online platform which provides low interest rate personal loans. At Monexo, you can apply for a loan even if you have a monthly salary as low as ₹15,000. Apart from competitive interest rates, being completely online, Monexo also processes loans quickly. In most cases, you can have the money in your account within 48 hours.
The process to get personal loans online from Monexo is straightforward and with the flexible EMI options available you can pay back at your comfort.