Home Banking 8 smart tips to boost your Personal Loan Eligibility

8 smart tips to boost your Personal Loan Eligibility

13 min read



What is a personal loan?

A personal loan is generally an unsecured loan. You do not need to lend a debtor to a lender that gives you a loan. However, in order to ensure that you can not meet the errors while applying for a personal loan, we have come up with a list of tips that you should consider before applying for personal loans.

There are times in life when you have an important need for what you are doing and how much you earn. In such cases, your friends or relatives are rarely useful. Fortunately, personal loans can now fulfil your immediate need with money. Your child’s marriage, their education, home improvement or exotic holidays, personal debt will help you keep your expenses.

Explore various banks for personal loan interest rates online


Now here are few tips that help you to boost your personal loan eligibility

Check your eligibility instantly here at the bottom  >> Click on calculator >> Amortization view ( A monthly break down of your loan amount ) what you need more just have a look.

  1. Except for major emergencies, you should try to shop for a while before finally choosing a lender. Lenders offer online personal loans online at different interest rates and a small difference in the rate can significantly impact the lender’s repayment amount significantly. But remember that the cheapest loan is not always the best option. Make sure to check the other terms and conditions of the lender before you apply.
  2. credit lenders always have their own eligibility criteria on the basis of their refusal to accept loan approvals. Your CIBIL score, current income and existing loans are important. Try to get more credit for a loan to get a high amount of credit with the best rate. For example, you can prepare your existing loans and credit card bills to improve your CIBIL score. You will be more qualified, easy to get a loan.
  3. Two Types of Interest on Personal Loans – Reduce Flat Rate and Balance. With a flat rate, you have a fixed interest across the loan tenure. On the other hand, the interest rate will be reduced if the lower the interest rate is low. Compared to flat rates, interest reduction is cheaper. So, if possible, try to get a personal loan to reduce the interest rate.
  4. While you are decided to apply for a personal loan, make sure you do not apply for the individual lender in each lender. Each time you send a loan application, the lender will search for your credit report and make multiple entries in your report. Creditors consider it a red flag. Avoid this credit appetite behaviour. Only after you have selected a lender will only shop and apply for a loan.
  5. Make sure to check there are any prepayment or foreclosure charges if you have other prepayment charges that are too high or low if you wish to make a loan. Lenders will charge you a payment before you pay a loan in advance. If you continue with the existing schedule, compare the advance payment charges with interest payable and only prepay if there is a major difference.
  6. Personal loans tend to have high interest rates. Most lenders are more committed than they really need. Personal loans need to understand the real emergency situations. The more debt you pay than you will eventually fall into the debt trap. Hence, try to borrow as little as possible and do so only when no other option is available.
  7. In most cases, if you have the most qualification for a loan, the lender will lend up to 5 years. But for a long period of the loan term, the total interest payable is higher. So keep the loan term as short as possible
  8. The lender is required to submit most papers when you apply for a personal loan. You need ID proof, address proof, income proof, bank statements and other documents required by the lender. Documents are different from salaries and self-employed applicants. Create a document checklist and keep it ready.

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