If there is something that we have learned in the last few years, it is that life is extremely unpredictable! After all, who would have predicted that a virus outbreak could impact human civilization so drastically? Further, at such times, there was not only loss of life but also human survival as a whole. Thus, a majority of people didn’t have any other option but to either borrow capital at high-interest rates from traditional financiers or to lose face and borrow money from friends and family.

However, thanks to the availability of personal loans, people can now easily choose to borrow money from new-age banks and NBFCs (Non-Banking Financial Companies) at way lower rates of interest compared to traditional financiers. Further, these financial institutions also provide their customers with a flexible repayment facility. Thus, customers can now easily secure the required capital and repay it over a predetermined interval of time.

But to reduce the risks associated with lending unsecured financial assistance, the new-age banks and NBFCs (Non-Banking Financial Companies) have set personal loan eligibility criteria that every customer must meet to be able to procure the loan amount.

Thus, in today’s article, we have mentioned a list of few tips that will greatly improve your personal loan eligibility in India:

1. Improve your credit score

A credit score is a 3-digit numerical figure given out by the credit rating bureaus of India. Further, CIBIL is one of India’s leading credit rating bureaus that provides a credit score based on an individual’s repayment history, type of credit accounts, etc. The range of CIBIL score is between 300 and 900; further, the higher your credit score, the better your personal loan eligibility in India. Thus, make sure that you improve your credit score before you choose to personal loan online apply in India!

2. Create an alternate source of income

An applicant’s repayment capability is something that new-age banks and NBFCs (Non-Banking Financial Companies) scrutinize to ensure that the borrower timely repays their loan amount without any defaults. Thus, before you choose to personal loan online apply, ensure that you have a stable source of income and have been working with your current organization for at least 2 years. You can further improve your personal loan eligibility by showing an alternate source of income. This income can be the rent from your second property or your spouse’s income.

3. Have a lower Debt-to-Income Ratio

Your Debt-to-Income ratio is the percentage of your earnings that goes towards repayments of existing debt and EMIs. An Ideal Debt-to-Income ratio should be below 40%, and if you have a higher ratio, it will make it highly difficult for you to personal loan online apply. Thus, to improve your personal loan eligibility, ensure that you repay most of your repayments, and reduce your Debt-to-Income ratio.

Hope you enjoyed reading this article regarding the various ways through which you can improve your personal loan eligibility in India. Good luck and all the best!