Getting a personal loan online can help you achieve your goals and dreams. However, it may seem like a daunting task to get your application approved. Technology and online platforms have made it very easy to avail personal loans, and that too quickly. In order to put together a personal loan online application, you should know the key contributors to your chances of getting it approved.
There are five main factors that are vital to your personal 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. If your score is high enough, getting your personal loan online application approved will be fairly easy. 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 in order to maintain a good credit score.
The higher your income, the higher the chances of you being able to make the loan repayments on time. Having a steady income around at least three lakh rupees per annum is considered good for a salaried person. For self-employed applicants, the minimum requirement is higher. The EMI repayments should not completely 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 successful 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 those form 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 personal loan application. You need to be able to provide evidence showing full-time work experience for at least 2 years; 5 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
In order to improve your chances of getting your personal loan online 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.