The raging pandemic has led to economic uncertainty, and these uncertainties may occur any time without prior information. During these times banks, NBFCs, and other lenders tighten their lending norms due to the situation. With several lay-offs and pay cuts, there is a constant worry amongst lenders that their NPAs – the non-performing assets – would increase.
Since personal loans do not require collateral, lenders naturally become more stringent while providing these kinds of loans. Given buying habits of consumers, with a large economic downturn, more people are trying to avail the of personal loans to meet often basic needs. At a time like this, you do want green lights at every step of your personal loan application.
And it’s possible to get them.
There are multiple ways to increase your personal loan eligibility, enabling that green light you are waiting for.
Ways to increase your personal loan eligibility
- Clearing pending dues: One of the parameters checked by lenders is called fixed obligation to income ratio (FOIR) which checks the applicant’s pending EMIs. The amount being lent is a certain proportion of your FOIR, and this proportion keeps on changing, which might make it difficult for you to avail of the loan.
- Improving your creditworthiness: A credit score of 700 or more is deemed ideal. Once you download your credit report, you can check the areas where you are lagging and try improving that by paying certain bills and EMIs. Further, a better credit score can allow you to get your personal loan at better rates.
- Assessing EMI affordability: Shorter EMI payment periods translate into larger EMIs to be paid, but with lower interest rates. On the other hand, longer EMI periods have higher interest rates, but then you can pay smaller sums at distinct intervals. Understanding this would make sure you do not have to pay more than you can handle.
- Taking joint loans: When you take a joint loan, both you and your co-applicant become liable to pay back the amount, easing your financial burden. Further, having co-applicant(s) might help with your credit scores if one of you has better credit scores, increasing your personal loan eligibility and getting it at lower interest rates.
- Checking with the lender’s loan eligibility calculator: Whenever you are looking to borrow from a certain lender, check with their loan eligibility calculator and see where you stand. This will ease your process as you can determine the perfect type of loan, how much you should borrow and this will ensure a faster approval process from your lenders.
- Meeting lender’s eligibility criteria: Other than your creditworthiness, lenders also consider certain other parameters like age, income, and employment status. You should make sure; you meet those criteria as they are crucial to getting that personal loan. Keeping all relevant documents by your side will make your approval process faster and easier.
Picking the correct lender
There are several lenders in this space. Finding one best among all can be a difficult choice, but making that suitable choice would ensure easing your financial stress. While there are several of these available in the market today with various attractive schemes, EarlySalary certainly stands out among them. Starting from Rs 1,000 loans with a minimal interest of Rs 6 per day, this Pune-based fintech portal has been changing the lives of common people around India by seamlessly providing affordable and convenient loans. This platform is trustworthy for even the young salaried individuals.
Within few hours you can get instant cash loans up to Rs 5,00,000. You are free to use your loan for any purpose you wish with no restrictions and get your loan sanctioned without putting collateral upfront to facilitate your loan. The tenure for your loan can range up to 24 months, and the prepayment charges? Zero!
Feel free to get in touch with us for any questions on credit, loans, and your instant cash needs! We’re listening all day on:
Download the EarlySalary app here, and be a part of the #OneInAMillion experience.