Personal loans are one of the most popular credit products amongst working-class professionals in our country. Easy application process, zero collaterals, and quick disbursal are some of the features of a personal loan that make it a preferred choice to meet the financial requirements.
Therefore, in order to increase the approval chances of their personal loan application, it is essential for borrowers to boost their personal loan eligibility. If you want to ensure loan approval with favourable terms and conditions, use these simple tips that can help you improve your personal loan eligibility.
1. Maintain a Healthy Credit Score
It is a common practice by banks and other lending institutions to report your debt-taking and repaying habits to the credit bureau, which generates a credit score based on the factors reported. Consequently, a healthy credit score becomes a primary requirement before applying for a loan anywhere, as it is easily accessible by the lending party.
A credit score of at least 700 works well and will increase the probability of getting a loan. For better credit score, always pay your instalments and credit card bills on time, use not more than 30% of the credit limit extended, and do not close your old accounts.
2. Include all of your Sources of Income
Your income is also taken into account by lenders when determining your repayment capabilities. As a result, you must include all of your income sources, including any rental income, part-time income, or anything else, while filling out the online loan application form. This will demonstrate to the lender that you have sufficient income to make regular payments.
3. Reduce your Debt-to-Income Ratio
Before you apply for a personal loan, ensure that you pay off your existing debts and credit card bills to reduce your debt-to-income ratio. Your current debts and credit card due amounts may pose you as a credit-hungry borrower and make it challenging to get another loan. Ideally, the total amount of EMIs you are paying at present should not be more than 30-40% of your monthly income. If it is more than that, pay it off before making a new loan application.
4. Assess your EMI affordability
Most lenders prefer total EMIs, including the new EMI for a personal loan, to be under 50% of one’s net monthly income. Those exceeding this level have lower chances of loan approval. Hence, personal loan applicants should carefully choose their loan tenure on the basis of their ability to repay EMIs. A shorter tenure would have bigger EMIs and lower interest cost, whereas a longer tenure would have smaller EMI and higher interest cost.
5. Apply for Joint Loan
In case, you do have a working spouse, you can even apply for a joint personal loan to increase your loan eligibility as that will increase the overall household income and give much better comfort to the lender.
6. Do Not Apply for Multiple Loans
Lenders do a hard inquiry with a credit bureau when you apply for a loan to determine your default risk. If you apply for many loans at the same time, each lender will make multiple hard queries on your credit report, lowering your credit score. They may reject your loan application if they regard you as a credit-hungry borrower. As a result, it’s a good idea to evaluate lenders ahead of time and apply for the one that best meets your needs and personal loan eligibility.
Where to get Personal Loan?
Why Choose Loans from Omozing?
Omozing helps make Smart Money Moves for a Lifetime. They strive to get lowest interest rates and best terms for your Online Applications at www.Omozing.com . We’ve made business lending smarter, faster and easier by transforming the approval process from stumbling blocks to stepping-stones. This enables borrowers to not just get access to capital, but also understand what areas they need to work on in order to enhance their credit profile. Omozing ensures that Borrowers get a secure, safe and reliable application process that be tracked online.
5 Reasons to choose Omozing
1. Loans from INR 10k to INR 10 lakhs
Personal Loan Interest Rates starting from 0.8% p.m, and Loan amount ranging from INR 10,000 to INR 10,00,000. The Minimum and maximum repayment period ranges from 1 month to 48 months. CIBIL 600+ all company categories (including LLP, Self Employed, Proprietorship)
2. Cutomised Tailor Options
- Depending on your demands, we may provide quick financing of varying quantities at affordable interest rates.
- You have the freedom to utilise your loan anyway you want, whether for business or for immediate personal needs.
- Flexible repayment options depending on your specific cash flow and budget, as well as conditions that is beneficial to your position.
3. Lower CIBIL
While most lenders require borrowers to have a CIBIL score of over 750, at Omozing.com provide loans even with 600. Besides the CIBIL score, we also considers your age, employment status, and net monthly income.
4. Ways to apply
You can apply for a personal loan through us by 2 ways:
1. You can download our Mobile Application from Google app store.
2. Apply on portal using out Personal Loan link
5. Prompt Loan Disbursal
An easy online application process facilitates speedy verification and disbursal of loan. Get KYC verified from the comfort of your home and have our loan manager take care of an instant transfer of funds to your account.