Getting a personal loan online can help you achieve your goals and dreams. Technology and online platforms have made it very easy to avail of personal loans quickly. However, it may seem like a daunting task to get your application approved. To put together a personal loan online application, you should know the critical contributors to your chances of getting it approved.
Five main factors are vital to your loan eligibility. If you fail to meet the eligibility criteria, your application may be rejected. Read on to know more about these factors, so your journey can be smooth and successful.
1. Credit score or CIBIL score
Your CIBIL score or credit score attests to your financial history and track record of borrowing and repaying loans. Getting your online loan application approved will be pretty straightforward if your score is high enough. A score greater than 750 is considered a good score. Any less than that, and your chances of getting the loan are much weaker. Ensure that your repayments are timely and consistent with maintaining a good credit score.
The higher your income, the higher the chances of making the loan repayments on time. Having a steady income of at least three lakh rupees per annum is suitable for a salaried person. For self-employed applicants, the minimum requirement is higher. The EMI repayments should not finish all your funds, and you should be able to maintain financial stability with your income amount. The rule goes that
the fixed obligations to income ratio (FOIR) of the sum of all the monthly EMIs of all loans should not exceed 35% of your monthly income.
3. Employer Recommendation
Your employer can attest to your integrity and consistency. Working with a thriving organization with a high turnover rate helps your case for a personal loan. Salaries individuals working at reputed MNCs are considered financially stable and secure applicants by lenders. Meanwhile, start-up employees or smaller struggling companies are not seen as the most secure candidates.
4. Job Stability
Another vital factor is employment stability. Individuals who constantly freelance or keep switching jobs may not make the best impression in their loan application. You need to provide evidence showing full-time work experience for at least two years, five years if you are self-employed. Job stability is critical for your eligibility and says a lot about your financial condition and ability to make consistent repayments.
Younger applicants have a better chance of getting a personal loan approved as they are seen as candidates with more potential and capability to repay the loans.
To Sum It Up
To improve your chances of getting your online loan application approved, make sure you meet these criteria sufficiently. On online platforms such as Finserv MARKETS, you can choose a loan from a wide variety of options from different financial institutions to find the best fit for you.