Personal loans are helpful in many ways. Also, anyone can apply for a personal loan, whether they are salaried or a self-employed person. Personal loans are unsecured type loans, and many lenders offer instantloans with 24hrs of applications.
The applicant also has the freedom to improve their eligibility, like credit score, and increase their chances of getting a personal loan online. So, read to learn more about improving your eligibility for an instant personal loan online.
- Check your credit score
Personal loans are beneficial for different people as they can be used for various needs like purchasing the latest gadget, paying medical bills, buying an expensive car or house and so on. But getting an instant loan primarily depends on your credit score. A credit score is a three-digit score that indicates your ability to repay and your creditworthiness.
The credit score is provided by CIBIL or Credit Information Bureau India Limited. And most Banks and NBFCs require a credit score higher than 750 to offer instant personal loans. Some loan apps like PaySense also offer instantloans with no credit record. But in general, you need to maintain a good credit score to get a personal loan.
- Always apply for one loan at a time
Another essential way you can improve your instant loan eligibility is by applying for one loan at a time. Unfortunately, most people make the mistake of applying for multiple loans simultaneously. Instant personal loans online are easy to apply for, and it is quite natural to get tempted to apply for multiple loans. But in reality, it is not as beneficial as you may think.
Applying for multiple loans directly affects your credit score and creates a negative impression in front of lenders. Many lenders may see you desperate to get credit and feel unsafe to lend money. So, if you want to improve your eligibility for personal loans, make sure you apply for only one loan at a time.
- Apply for the right loan amount
Choosing the wrong loan amount, whether higher or less than your need, is foolish. Applying for a higher amount will cause a waste of money, and a lesser amount will be insufficient to fill your needs. Both of them can affect your credit score negatively. For instance, if you apply for a higher amount, it will create unnecessary stress, and if you apply for a lesser amount, you probably end up applying for too many loans.
So, it would be wise for you to select the correct amount of money for your personal loan. The amount you are applying for should be sufficient for your need but does not exceed your requirement. It will also help you avoid multiple applications.
- Maintain a low debt-to-income ratio
If you want to improve your chances of obtaining a personal loan and plan to apply for an instant personal loan online, you must check your debt-to-income ratio. The debt-to-income ratio is the relation between your income and debt. For example, if more than 40% of your monthly income goes to repay your debt, then lenders will consider you incapable of taking new responsibility for a new loan.
So, if you want to improve your eligibility, ensure a low debt-to-income ratio.
- Check the required documents before you apply
Check all the required documents before you apply to improve your chances of getting the loan. If you are applying under lenders like PaySense, you can log in to the instant loan app and check the list of the required documents before starting the instant personal loan online application process.
Usually, you need to keep your Aadhaar card, PAN card, driving licence, and income proof like an e-banking statement etc., for the loan application.
- Fill in other eligibility criteria
Besides the required documents like proof of ID, income and address, one may need to fill in some other eligibility criteria to improve their chances of getting an instant loan. For instance, if you are applying under PaySense, you must be an Indian citizen, age between 21 to 60, and your monthly income should be within 18,000-20,000/-INR to apply for a personal loan.
Instant personal loan online is easy to access and ideal for emergency financial support. However, getting this loan solely depends on your credit score and whether you match the eligibility. So, use these tips to improve your eligibility to secure a personal loan.