The effects of this pandemic have trickled down to the common man and his finances. With companies cutting down on costs, little or no hiring being done and some employees being given pink slips, uncertainty prevails. Take for instance India, where close to 82% salaried individuals are struggling to meet their day to day needs and 94% of people are extra cautious about spending now, as per the results of a recent survey conducted by IndiaLends. (2)
A whopping majority of 90% of those surveyed are unsure of whether they would be able to meet their financial goals by saving more this year. While some Indians are figuring out how to pay their existing debts, for others this period is an opportune time to take corrective steps to become a better candidate for loan providers in the near future. Yes, even in such a grim scenario, you can increase your chances of being offered a personal loan available on Finserv MARKETS to help you manage immediate expenses. Let us take a look at how you can do that:
1. Examine your CIBIL score: Do not rush into your loan application process without having a second look at your credit score. It is advised that you review your existing credit score before you apply for a loan. Most financial institutions such as banks and NBFCs consider credit scores of 750 or above as a personal loan eligibility criteria. You might end up paying a high interest rate for a score that is lower than 750 or even risk getting rejected. However, even if your score is low, you can rise up to this benchmark by taking corrective steps. These include paying your credit card and EMI bills on time, ensuring your credit mix is balanced and the ratio of credit utilization is below 30%. Bonus points if you are regularly overseeing loans that are co-signed or guaranteed.
2. Budget-friendly EMIs: The probability of approval of your personal loan depends on the aggregate EMIs which are in turn dependent on the amount of loan applied for and the selection of a repayment duration. Lenders follow the basic rule using your monthly income as the yardstick and making sure all your EMIs do not exceed more than 50% of your take home salary every month. Hence, it makes sense to consider your financial comfort and extend your loan tenure so that your EMIs are affordable and the payable interest is also less. Bajaj Finserv Personal loan available on Finserv MARKETS offers you the flexibility to repay from anywhere between 12 months to 5 years. In contrast, short loan durations come with higher EMIs and interest rates.
3. Go loan hunting online: When you make a loan enquiry one after another with several lenders, your credit score is likely to come down. This is because the bank or NBFC requests the credit bureau for your report, each of which is categorised as a hard inquiry. All of these are enumerated in the credit report and can impact your creditworthiness to a prospective financial institution as well as your personal loan eligibility. Instead, you can compare loans online and zero upon the one that is right for you because such credit report requests fall into the category of soft enquiries and have no effect on your credit score.
4. Go for co-application: If you are doubtful of your personal loan eligibility, and want to increase the chances of approval, it is a good idea to consider adding a person as a co-applicant. This provides assurance to the lending party that you will be able to repay the loan on time, hence reducing their credit risk.
If you are a resident of India between 23 to 58 years of age with a stable income, you qualify for a personal loan available on Finserv MARKETS up to a maximum of Rs 25 lakhs. The entire process of application is online with the facility to calculate your EMIs even before your loan is approved. All you need to do is choose the loan amount, a tenure between 12 months to 5 years for repayment as per your convenience and submit a few necessary documents.
Bajaj Finserv Personal loan available on Finserv MARKETS is your ticket to instant, speedy finance with an approval time of 3 minutes post submission of your application. You can expect funds to be transferred into your account swiftly within 24 hours of the loan being approved. There are no extra charges on foreclosing the loan apart from zero collateral and little documentation.
The absence of any third party in the entire lending process guarantees transparency and inspires trust. Enjoy value added services to help you become financially responsible as you access your loan account hassle free anytime anywhere on the go!Now enjoy the same benefits in just one click with our Finserv MARKETS App.