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At some point in life, we all need financial assistance, which may be in the form of personal loan. So, if you're planning to apply for the loan , then here are six tips to enhance your eligibility for a personal loan:
6. Rental Income:
- Creditworthiness is one of the primary eligibility criteria for getting a personal loan. Your credit score depends on your CIBIL score, which bank refers before approving your application. Your CIBIL score represents your loan repayment and credit history.If you have a good CIBIL score, banks will offer you the credit at the best competitive rates. To boost eligibility, avoid raising multiple loan application requests with different banks, it leads to a new score, which in turn could affect your existing CIBIL Score.Delay in loan repayment is directly co-related to your credit score. It is advisable to pay your EMIs and credit card bills on time to minus any defaults.Banks usually refrain from approving personal loan if you're already debt-ridden. It decreases your chances of getting a personal loan. Prepay existing loans as far as possible to increase your personal loan eligibility .Another way to increase your eligibility would be by choosing a longer tenure. This is because the EMI will be lower, and people with lower income will be able to repay their loan amount on time. The maximum loan tenure you could opt is five years.Variable payment is the perks that you earn on the job apart from your fixed payment component in your salary. When you apply for a personal loan, make sure you inform the bank about your variable pay benefit and this way you can improve your chances of eligibility.If you are already a working professional and you own a residential house or a commercial plot that is sitting idle, then it's time to put them on lease. The banks will consider rental income as an additional source of income earnings. This will help you to enhance your personal loan value and eligibility criteria.
Personal loans are easy to avail as they have quick disbursement, minimum documentation, and it conveniently provides a financial cushion in case of a medical emergency, marriage, or any other goal.
DISCLAIMER
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.