How to Determine Personal Loan Eligibility and How Is It Crucial?

Personal loans are available from most banks and financial institutions and they are necessary to meet financial expenses.

While there are specific loans for buying a car or a house, there are times when we need loans to repair a house, for daughter’s marriage, or to make a trip to Europe that one has always dreamed of.

However, the eligibility for personal loans depends on a number of factors. Even in the above mentioned scenario, a person who wants the loan for his daughter’s marriage will have greater chances of getting his loan approved than someone who wants to undergo a foreign trip.

Here are some aspects that have to be complied with in case you want to make sure that your personal loans get approved instantly.

Banks and credit unions often go for a personal loan eligibility check which is dependent on a variety of factors. With some time and patience, along with careful research, all of these pre- requisites can be met with, increasing your personal loan eligibility.

• The first of them being, whether the debtor is still paying off any previous personal loans taken a few years back. This is clearly a negative situation and banks are not likely to approve another loan when one already has an existing one. Moreover, it helps if you approach a bank with whom you already have an existing working relationship and where they know about your financial history, rather than approaching a new one, who would be greatly skeptical while approving the loan, as is the case with any new debtor. Moreover, smaller banks and financial institutions tend to be little more lenient in their approach and will probably listen to you more than big corporate house.
• The personal loans eligibility increases quite a bit if one can provide valid documentation about various perks and benefits that one receives at work. Showing valid proof of another source of income is also a great way of convincing your creditors that you are well equipped to pay off your existing loans. This could be another side job that you might be doing or the rent that you earn from your ancestral home, or even the interests that you earn from an FD or MIS scheme.
• Another factor that can increase the eligibility of personal loans is that if the debtor is ready to increase the loan tenure. Most do not want to do that because longer tenure means paying more towards the interests in the long run. However, if the loan is very much a necessity, then this might be a good option to consider, but one has to keep in mind that the tenure cannot be more than twenty five years in case of most banks.
• When you are calculating how to check personal loan eligibility, it would be great if you can also add your spouse’s earning with your own while calculating repayment. Having a spouse sign up as a co-applicant definitely increases the chances of getting a loan approved. In case someone is single, one can ask one’s parents or even an earning relative to be a co- debtor, provided one is sure that one would be able to pay the person back as well.
• As the saying goes, prevention is always better than cure, so if you already know that sometime in the future you might have to apply for a personal loan, start working on the CIBIL score now. A good score is a pre- requisite to convince creditors that they have good debtor to invest in and that they are sure to get back their money.

 

Bajaj Finserv has experts who will be able to guide you through the process of calculating personal loan eligibility, and also help you acquire them.

Their loan options are one of the best and the interest rates competitive enough so that one can take a loan without having to worry too much about repayment.

There are several features and benefits of personal loans available at Bajaj Finserv and loans are given up to Rs.25 lakh, which is a high amount in this industry segment. The easy online application process is the icing on the cake.

Tags: personal loan

Category: Loans