3 Important think improve chances of getting a personal loan approved in
Just Few Minute?
“Given that we are just coming out of a
lockdown, people applying for a personal loan in 2021 should ensure that they
must not be under any covid-related loan restructuring; should have paid at
least the last three EMIs on existing loans and cards; and should be receiving
their salary regularly without any covid-related reduction or delay,".
Remember that frequent job-hopping can also indicate an unstable career.
Quick disbursal, minimum documentation, zero restriction on
end-use of loan proceeds and no collateral requirement make personal loans an
ideal borrowing option for fulfilling urgent monetary needs. Personal loan
rates are at multi-year lows at present, a loan portal.
Banks have
again started focusing on offering personal loans but with stricter credit
policies now, targeting customers working with reputed companies and the ones
who can demonstrate continuity in jobs.
Here are three things that can improve your
chances of getting a personal loan approved in 2021.
1. Credit profile:
Lenders check
the credit score for assessing the applicant’s creditworthiness for availing a
personal loan. Gaurav Aggarwal, director, unsecured loans, Paisabazaar.com,
said that generally, applicants with a score of 750 and above have higher
chances of getting a loan approved.
Try and build
and maintain a strong credit score. “For that, adopt healthy financial habits
like timely repayment of your EMIs and credit card bills, restricting your
credit utilization ratio within 30%, maintaining a healthy credit mix, and
monitoring co-signed loan accounts," Aggarwal said. Credit utilization
ratio is the amount you currently owe on your credit card divided by your
credit limit.
2.Repayment capacity:
Apply for a
personal loan amount that you can service comfortably with your current
earnings. Lenders also tend to prefer applicants whose loan repayment
obligations (including the proposed personal loan’s EMI) do not exceed 50%.
3. Compare offers
Begin your loan
search by contacting banks and non-banking financial companies (NBFCs) with
whom you have existing consumer relationships for their personal loan features
and service terms.
However, be
careful about making multiple applications.
1. “Making multiple credit enquiries
within a short period can depict you as a credit hungry borrower,"
2. Enquiries at
online financial marketplaces do not affect your credit score and can give you
the required information.
3. But don’t just compare the interest rates, look at loan features and costs
too.
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